As you are selling your home in the Bay Area, it is a good idea to create a seller’s net sheet to assist you in determining your sales price.
If you are working with an agent, your agent can also create the net sheet, which adds together the costs of selling your home and shows what you can expect to receive from the sale.
How to Create a Seller’s Net Sheet
- Start with a sales price, as the cost of selling your home in the Bay Area will depend on the sales price. Estimate the price for which you would like to get for your home.
- Calculate commissions that you will need to pay to your listing agent and buyer’s agent in the Bay Area, when applicable. This is generally a percentage of the sales price, but some agents do charge a fixed fee. If you will pay a percentage, multiply it by the sales price.
For example: $300,000 sales price x 6% (0.06) commission = $18,000
- Ask your title company for the total for title insurance. As the seller, you will usually buy the buyer’s title policy. The amount often depends on the sales price.
- Ask the title company about escrow fees, transfer fees and other fees associated with selling your home.
Examine your most recent property tax bill in the Bay Area. This will help you determine if you will have to pay back taxes when the sale closes.
- Call your lender to find out the payout on your mortgage on the projected close of the transaction.
- Add the totals from steps 2 through 6. If you have liens on your home, these will also need to be added. You should also add other real estate taxes or fees that may apply in your city.
Subtract this total from the price you want to receive from the first step, to give you your estimated net at closing.