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Selling your home is a significant financial decision, and one of the most important questions you'll have is: "How much will I get after selling my house?" 

This blog will guide you through understanding the various factors that affect your net proceeds and how you can use our Seller Net Sheet calculator to get an accurate estimate.

A seller net sheet is a document that provides an estimate of the net proceeds you will receive after selling your home. 

It takes into account various costs and fees associated with the sale, giving you a clear picture of what to expect financially. 

This is important as it just not what you sell the home for but what you 

Net after all the cost that Matters! 

Several factors impact the amount you'll receive after selling your house. Here's a breakdown:

Selling Price

The final selling price of your home is the starting point for calculating net proceeds. This is the amount a buyer agrees to pay for your property.

Outstanding Mortgage Balance

Any remaining balance on your mortgage will be deducted from the selling price. This includes the principal amount, any interest due, and potential prepayment penalties.

Realtor Fees: These fees usually range from 5-6% of the selling price and cover the commission for both the listing agent and the buyer's agent.  Typically the fee is split between the listing agent (the seller's agent) and the buyer's agent. 

For example, if the agreed commission is 6%, 3% would go to the listing agent and 3% to the buyer's agent. These fees cover various services provided by real estate agents, including marketing your home, coordinating showings, negotiating with buyers, and guiding you through the closing process.  Want to learn more about Realtor Fee with the NAR lawsuit watch this video. 

Tips to Sell your home faster 

Closing Costs

Closing costs typically include: Owner Title Policy, Lender Title Policy, Escrow Fees, Recording fees, Attorney Fees and more. 

•  Title Insurance Fees: 
  •  Owner Title Policy: Typically 1% of the selling price. 
  •  Lender Title Policy: Typical required by the Lender to ensure the Property they are lending money on has "clear Title" 

For examples, the cost of a Texas title policy is around for Both Owner and Lender are normally rolled in together at a discount rate.

•  $832 for a $100,000 property, 
•  $1,359 for a $200,000 property, 
•  $2,413 for a $400,000 property.

Read more about Title Insurance 

•  Escrow Fees: Generally around $550.
•  Attorney Fees: $150-$350
•  Recording Fees and Other Title Fees: $95

These can add up to a significant amount and should be accounted for in your estimates. For detailed rates, you can refer to the Texas Title Insurance Basic Premium Rates.

If you've made any repairs or improvements to make your home more marketable, these costs will also be subtracted from the selling price.  Range $500-$5000

It is normally for very home to have common small repairs the seller might not want to do and instead offer a credit to the buyer at closing. This is Debt from the seller and a credit to buyer on the Closing Statement. 

Property taxes, liens, and other fees need to be cleared before the sale.  Vary by Tax Rates and Exemptions. 

Ensure all taxes and liens are up-to-date to avoid any surprises at closing. Our calculator also accounts for prorated taxes, calculating the portion of property taxes you owe up to the sale date.  

Read about Fort Bend Tax Rates

Factors Influencing Property Tax Rates, See our Property Tax Calculator 

If your property is part of a homeowners association (HOA), there may be additional fees, including:

•  HOA Resale Certificate Fee: The maximum amount is $375.
•  Updated Resale Certificate Fee: The maximum amount is $75. 
•   HOA Documents the new buyer may want, these will vary $50-$400
•  Rush fees  $100-$500

Rush fees are charged by the HOA to get the Documents to the seller or Title within a set time frame. We believe this is bogus charge but many HOA do in Fact charge $300 Rush fees, if you need the Documents within 7 of less business Days. 

So be sure to speak to your Realtor or Title about this HOA documents when you thinking about Selling the home.   

How HOA Laws are Changing in Texas 

If you decide to provide a home warranty to the buyer, this cost, typically ranging from $450 to $700, will also be deducted from your proceeds. 

This gives the new home buyer a good feeling knowing that if one of the home appliances fails they can call the company and for usually a small fee of $75-$100 they can have their HVAC or Dishwasher repaired vs having to Purchase a new one at their own expense. 

In the current market, due to higher mortgage rates, seller concessions have increased. Up to a third of sellers have started offering concessions to attract buyers.

 The increase in seller concessions represents a shift in negotiating power. As the market cools from its previous frenzy, buyers are gaining more leverage in transactions. This change allows them to request and often receive more favorable terms, including various forms of seller assistance 

Seller concessions limits vary based on the type of loan the buyer is using:

•  Conventional Loans:
  •  Less than 10% down payment: Up to 3% of the purchase price.
  •  Between 10% – 25% down payment: Up to 6% of the purchase price.
  •  Greater than 25% down payment: Up to 9% of the purchase price.
•  Federal Housing Administration (FHA) Loan: Up to 6% of the purchase price.
•  U.S. Department of Veterans Affairs (VA) Loan: Up to 4% of the purchase price.
•  U.S. Department of Agriculture (USDA) Loan: Up to 6% of the purchase price.

It's important to note that while seller concessions are becoming more frequent, their prevalence and nature can vary depending on local market conditions, property type, and individual circumstances. 

Buyers and sellers should work closely with real estate professionals to understand the current trends in their specific markets and negotiate terms that are mutually beneficial. 

Our Seller Net Sheet Calculator is designed to make this process easier. Here's how to use it:

1. Enter the Selling Price: Input the expected or agreed-upon selling price of your home.
2. Mortgage Balance: Enter the remaining balance on your mortgage.  Thinking about getting a Loan for a House? 
3. Closing Costs: Input estimated closing costs, including agent commissions, title fees, escrow fees, and other relevant costs.  What is Title Insurance?
4. Repairs and Improvements: Add any costs related to repairs and improvements made.
5. Concessions: Include any concessions given to the buyer.
6. Taxes and Liens: Enter any outstanding property taxes and liens.
7. HOA Fees: Include any HOA fees that apply. Normally Paid at the beginning of the year and credit back to seller. 
8. Home Warranty: If applicable, add the cost of the home warranty. 

Worry when it comes to purchasing a new home find some valuable resources.  

By inputting these details, the calculator will provide you with an estimated net proceed amount, giving you a clearer picture of what to expect.

To illustrate, let's consider a hypothetical example:

•  Selling Price: $505,000
•  Outstanding Mortgage: $185,000 
•  Plus Mortgage Interest  $912.33 (Due through 1st of the Month to Date of sell)
•  Realtor Fees: $27,775 (5.5%)
•  Closing Costs: $3066.35 Title Policy + $525 in escrow fees, $100 Recording Fee, $65 Tax Certificate fee, $250 Attorney Fee, $75 Flood Certificate 
•  Repairs and Improvements: $3,000
•  Concessions to Buyer: $2,000
•  Taxes and Liens: $3,000
•  HOA Fees: $375 (resale certificate fee)
•  Home Warranty: $500 
•  Property Taxes Owed by Seller: $4,661.37

Total Fees:  $43,357.31 

Seller Net sheet Calculator will show you an estimated net proceed of$277,045.98 

Working with a skilled realtor can significantly impact your net proceeds. A good realtor can help you:

•  Price Your Home Right: By conducting a comparative market analysis to ensure your home is competitively priced.
•  Market Your Home Effectively: Using professional photography, virtual tours, and strategic advertising to attract potential buyers.
•  Negotiate the Best Terms: Ensuring you get the best possible deal in terms of price and conditions.

Studies show that homes listed by realtors often sell for more than those sold by owners. For example, in 2023, the typical For Sale By Owner (FSBO) home sold for $310,000 compared to $405,000 for agent-assisted home sales. 

For more insights, check out the National Association of Realtors (NAR) statistics.

As local realtors and brokers, and with Scotty being a mortgage loan officer, we have the expertise to guide you through the entire process. From listing your home to closing the deal, we are here to answer all your questions and help you achieve the best possible outcome.

Knowing how much you'll get after selling your house is crucial for planning your next steps. Our Seller Net Sheet Calculator provides a detailed estimate, considering all relevant factors. Use it to get a clear picture of your net proceeds and feel confident in your home-selling journey.

If you are thinking about selling contact us today and we can help guide you every step of the way. 

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For a personalized consultation or any questions about selling your home, feel free to contact us. We're here to help you every step of the way.

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