A seller’s net sheet estimates how much money a seller makes from the sale of their home. We created a (very detailed) Excel spreadsheet that estimates a seller’s closing costs.

Please provide your information via the pop-up window (or the form in the middle of this article) and the worksheet will be emailed to you. Please call the Mortgage Mark Team if you have any questions or concerns. We’re here to help.

Seller’s Net Sheet Overview

A seller’s net sheet is often provided by a Realtor or a title company. Our worksheet, however, provides greater detail than most other estimates. You’re welcome to edit cells that are highlighted in blue. (Below are screenshots from a sample worksheet). 

We defaulted various costs in the worksheet with estimated values for the sale of a one-unit, single family home in Texas. Similarly, we put zeros for less common (fairly nominal) fees in the event you don’t know those figures. Cells left blank are values that you provide about your current home loan.

Seller’s Closing Costs

When selling a home in Texas the seller will most likely be responsible for paying some of the buyer’s closing costs. The seller’s portion of the buyer’s costs often consists of the title policy, a survey, and a home warranty.

The seller’s closing costs will be provided by the title company. The seller’s fees in Texas often consist of:

  • settlement closing fee for $300(ish),
  • document prep fee for $250(ish),
  • courier fee estimated at $40(ish),
  • tax cert for $38(ish),
  • recording fee for $40(ish),
  • and a state guarantee fee for a whopping $2.

The total estimate for the seller’s closing costs is approximately $670(ish). These seller’s closing costs are used in our seller’s net sheet worksheet.

Seller’s Net Sheet Assumptions

We are making a number of assumptions that are typical and customary for the seller fees in Texas. 

Title Policy

We are assuming that the purchase contract will show the seller paying for the buyer’s title policy. This is common for existing home sales. Note: when it’s a “seller’s market” (like it was during COVID), buyers will often be asked to pay for the title policy. 

Conversely, with new construction home sales, the responsibility of the title policy cost varies from builder to builder. Often times a builder will offer to cover the cost of the title policy when the buyers obtains financing from their preferred lender. 

Property Survey

For worst-case purposes, the seller’s net sheet assumes the seller doesn’t have an accurate survey. This fee for a new survey increases the seller’s cost (for a worst-case scenario). 

The cost for the new survey can be removed if an accurate survey exists. Be sure to check out why a mortgage lender won’t use your survey if a survey already exists. 

Home Warranty

Another worst-case assumption is that the seller will pay for a home warranty. It’s a common practice for the seller to pay for this expense. The cost of a home warranty can vary so feel free to update that amount in the seller’s net sheet calculator.

Amount Held in Current Escrow Account

Leave this section blank if you don’t have an existing escrow account. If you do have an escrow account with your current mortgage then you’re entitled to an escrow refund.

After closing, the mortgage servicer will send the seller a refund for any unused funds that remain in the escrow account. This typically arrives 30-60 days after closing.

Current Prepaids

The most confusing part about the seller net sheet are the HOA dues and per diem interest. Good news, these aren’t life-changing amounts.

Prepaid HOA Dues (rows 14 and 15): if you’re not sure about this then leave it blank as it’s typically not much money. The buyer will reimburse the seller on the Closing Disclosure (CD) for any prepaid HOA dues.

Per Diem Interest (row 20): mortgage payments are paid in arrears. This means the payments are due after the interest is accrued. In other words, when a homeowner makes a mortgage payment, their paying for the previous month’s interest. 

Therefore, to determine the mortgage payoff, add an estimated amount for per diem interest. The worst-case scenario is to add an amount that is equivalent of a monthly mortgage payment to this section.

Final Net After Closing

The seller’s net sheet calculates the final amount that the seller will net after closing. The seller normally receives their proceeds from the title company on the day of closing and funding

As stated above, the proceeds that won’t be provided immediately after closing is the escrow refund (if the current mortgage has an escrow account). The mortgage servicer will dictate when that refund is issued.

Please note: it’s possible that the mortgage servicer may net the escrow amount from the mortgage payoff. In other words, they may reduce the amount you owe them by the amount held in your escrow account. Doing this eliminates the need for the servicer to send refund checks. 

What’s Next

In preparation for your next home purchase, please contact us to get pre-approvedThe Mortgage Mark Team can walk you through the entire home loan process and mortgage loan process. Call us with any questions and let us know how we can help.

 
Mark

Mark Pfeiffer

Branch Manager
Loan Officer, NMLS # 729612
972.829.8639
MortgageMark@MortgageMark.com

Translate »