Net Sheet Calculator

Estimate the seller’s net proceeds from a real estate transaction.

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Understanding Your Real Estate Net Sheet

A net sheet, also known as a seller’s net proceeds worksheet, is a crucial document in real estate transactions. It provides an estimate of how much money a seller can expect to receive after all expenses associated with selling their property have been paid. This calculator helps you get a quick estimate, but it’s important to note that actual figures may vary based on the specific terms of your transaction and final closing statements.

Key Components of a Net Sheet Calculation:

• Sale Price: The agreed-upon price for the property between the buyer and seller.
• Real Estate Commission: This is typically a percentage of the sale price paid to the listing agent and buyer’s agent. The rate is negotiable.
• Closing Costs: These are fees and expenses incurred by both buyer and seller to finalize the sale. For sellers, they can include title insurance fees, escrow fees, recording fees, transfer taxes, attorney fees, and any prorated property taxes or HOA dues. Our calculator uses an estimated lump sum for these.
• Existing Mortgage Balance: The outstanding amount owed on the seller’s current mortgage(s) that needs to be paid off at closing.
• Other Liens/Payoffs: This includes any other debts secured by the property that must be cleared, such as home equity loans, judgments, or tax liens.
• Seller Credits/Concessions: Amounts the seller agrees to contribute towards the buyer’s closing costs or other financial incentives.

How the Calculation Works:

The fundamental formula for a net sheet is:

Net Proceeds = Sale Price – (Sale Price * Commission Rate) – Closing Costs – Mortgage Balance – Other Liens/Payoffs + Seller Credits

Our calculator simplifies this by taking your inputs for each of these components and applying the formula.

Example Scenario:

Let’s consider a property with the following details:

• Sale Price: $450,000
• Real Estate Commission Rate: 5.5%
• Estimated Closing Costs: $6,000
• Existing Mortgage Balance: $180,000
• Other Liens/Payoffs: $8,000
• Seller Credits/Concessions: $2,500

Calculation Breakdown:

• Commission Amount: $450,000 * 0.055 = $24,750
• Total Deductions: $24,750 (Commission) + $6,000 (Closing Costs) + $180,000 (Mortgage) + $8,000 (Liens) – $2,500 (Credits) = $216,250
• Estimated Net Proceeds: $450,000 (Sale Price) – $216,250 = $233,750

This example illustrates how various costs are deducted from the sale price to arrive at the final amount the seller would net. Remember to consult with your real estate agent or attorney for a precise net sheet tailored to your specific transaction.