Series: Understanding the Seller Net Sheet (Part 2 of 6)
Last time, we talked about why your Zillow Zestimate or Redfin estimate isn’t what lands in your bank account. That number is the sale price. What you actually walk away with — your net proceeds — comes from a different document entirely: the seller net sheet.
A net sheet lists every cost that comes out of your sale price, line by line. What’s left after that becomes yours. Every seller in Pasadena and the San Gabriel Valley should see one early — ideally before listing, not on closing day. Here’s what’s actually on it.
Sale Price
The starting number — what a buyer has agreed to pay. This is the figure most sellers fixate on, and the only one an online estimate tool ever shows you.
Mortgage Payoff
Not your current loan balance — your payoff amount. This includes accrued interest through the closing date. In some cases, it also includes a reconveyance or recording fee your lender charges to release the lien. It also covers any second mortgage, HELOC, or tax lien you have. This number can run higher than expected. That’s especially true for absentee owners or anyone who hasn’t stayed in close touch with their loan servicer.
Commission
As of August 17, 2024, the listing agent negotiates their compensation only with the seller. That’s part of the listing agreement. The buyer’s agent, if there is one, will negotiate their compensation when they write an offer.
Title and Escrow Fees
Title insurance protects the buyer, and often the lender, against defects in the property’s title history. Escrow fees cover the neutral third party that handles funds and documents through closing. In Southern California, buyer and seller commonly split these costs. Who pays what is negotiable and varies by county custom.
Transfer Tax
California counties and many cities charge a tax on the transfer of real property, calculated on the sale price. Los Angeles County has its own rate. Several cities within the county — including some in the SGV — add an extra city transfer tax on top. This line item frequently surprises people.
Prorated Property Taxes
California property taxes work in arrears. At closing, you’ll either owe the buyer for the days you owned the home during the current tax period, or you’ll receive a credit instead. Which one applies depends on timing relative to the tax installment due dates.
HOA Fees and Transfer Costs
If the property is in an HOA, expect a transfer fee and a document/demand fee for the required disclosure package. Prorated dues apply too.
Repair Credits and Buyer Concessions
Anything you negotiate during the inspection contingency reduces your net. That includes repair credits, a price reduction in lieu of repairs, or a credit toward the buyer’s closing costs. So does an appraisal gap credit, if one comes up.
Miscellaneous Closing Costs
Notary fees, recording fees, any outstanding HOA violations or liens, and natural hazard disclosure report fees round out the list. Depending on your situation, you might also see real estate excise obligations or short-sale-specific processing costs.
Your Net Proceeds
Add these up and subtract them from the sale price. What’s left is your net proceeds — the number that actually matters.
Why This Matters
The value of seeing this early isn’t just avoiding surprises at the closing table. It’s being able to make an informed decision about listing price and timing. It’s also about whether a sale makes sense for you right now. That’s a conversation worth having before you sign anything, not after.
The Bottom Line
If you’re weighing a sale and want to see these numbers run against your specific situation, just reach out. I’m happy to put together a net sheet with you — no obligation, and no pressure to list.
This is Part 2 of a series on the seller net sheet.
Jeffrey Kam, MBA | Broker/Owner | Green Street Real Estate | DRE #01054411 | Serving Pasadena and the San Gabriel Valley |