What is the seller net sheet, and when should you be using it in your business? A seller net sheet is a one-page document outlining the estimated offer price of the property plus an itemized list of expenses. This is just an approximation—we don’t know the precise numbers until we get the final settlement statement shortly before closing, but it’s a close estimate. There are three situations where you should be using the seller net sheet:
1. During the listing appointment (or when you sign the listing agreement). It’s very important to show the sellers what they should expect from a typical offer. You’ll put your commission on it, title closing fees, taxes, etc., so they have as much information as possible up front. People usually like to have their expectations set, and it’s our job to provide that information.
2. When presenting an offer to an FSBO seller. This is significant because this seller is not represented by a real estate agent. When you show them an offer and what they can expect to receive at closing, it removes a lot of doubt for that seller if they don’t feel completely confident in their decision-making skills in this area. All of our agents use this with FSBO sellers, and usually we receive a quicker response.
3. When presenting offers to your seller client. Again, they’ll have all the information in front of them. This is especially helpful during multiple-offer situations because they’ll see those offers lined up with all the numbers side by side. This also saves time; it’s efficient.
If you aren’t using a seller net sheet in all three of these areas, I highly recommend that you start; it’s a simple document to write.
If you have questions about how to create a seller net sheet or concerning real estate in general, please call (260) 750-2818 or email us. We would be glad to speak with you.
