A Net Sheet should reflect all financial elements of an offer that would affect the seller’s bottom line.
What’s In It? The most common in Baldwin County:
| Commission: | The sales commission. A percentage of sales price, based on the terms of the listing agreement. |
| Deed Preparation: | The cost for an attorney to draw up the deed transferring title. |
| Title Insurance: | The cost of an owner’s Title Policy, paid by the seller. |
| Termite Inspection: | Contracts commonly stipulate that there be a state-approved certificate of no active termite infestation provided by the seller. |
| Tax Prorata: | The share of the current year’s taxes that the seller gives the buyer credit for. |
| Estoppel Letter: | This is a recent development, and is charged by The Continental Group to sellers in East, Dunes and West. |
Other items that may appear on a net sheet, based on the terms of the offer:
| HOA Dues Prorata: | If included, this is a credit for the portion of the HOA dues you paid at the beginning of the month, if you close the sale before the last day of the month. |
| Buyer Closing Costs: | If a buyer asked the seller to pay for some or all closing costs in his offer, those should appear on the net sheet. |
| Selling Bonus: | If the seller has offered a selling bonus to the selling agent/broker as an incentive, this should be shown on the net sheet. |
| Home Warranty: | If the buyer has asked the seller to purchase a Home Warranty, the estimated expense should show on the net sheet. |
| Prepaid Insurance Credit: |
Applies to Plantation Phases 1, 2 and 3 and other condos where the Common Area Insurance is assessed separately from the monthly dues. It is always a negotiated item, as HOA assessments are expected to be paid in full by the seller in order to provide clear title at closing. |
You won’t be seeing “Decorating Allowance” or “Painting Allowance” in contracts or on net sheets very often, especially if the purchase is being financed. Lenders consider these allowances as discounts from the sales price and deduct them from the contract price to determine how much they will ultimately lend.
This is an abbreviated version of the full article that is posted on plantationowners.com. Hopefully, this information will take some of the mystery out of one of the most common and useful documents among the many that you will encounter in the sale of your real estate. If you ever have questions about current market conditions or what it would take to list your property for sale at the Plantation, we are at your disposal at Mandoki Realty.