Series: Seller Net Sheet (Part 2 of 6)
Last time, we talked about why your Zillow Zestimate or Redfin estimate isn’t the number that 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 is a line-by-line accounting of every cost that gets subtracted from your sale price before the remainder becomes yours. Every seller in Pasadena and the San Gabriel Valley should see one early in the process, not on the day escrow closes. 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, which includes accrued interest through the closing date and, in some cases, a reconveyance or recording fee your lender charges to release the lien. If you have a second mortgage, HELOC, or a tax lien, those get paid off here too. For absentee owners or anyone who’s been out of close contact with their loan servicer, this number can come in higher than expected.
Commission. As of August 17, 2024, the listing agent negotiates their compensation only with the seller and is 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, these are commonly split between buyer and seller, though 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, and several cities within the county — including some in the SGV — layer on an additional city transfer tax. This is a line item people are frequently surprised by.
Prorated property taxes. Property taxes are paid in arrears in California, so at closing you’ll either owe the buyer for the days you owned the home during the current tax period, or receive a credit, depending 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, a document/demand fee for the required disclosure package, and prorated dues.
Repair credits and buyer concessions. Anything negotiated during inspection contingency — repair credits, a price reduction in lieu of repairs, or a credit toward the buyer’s closing costs — reduces your net. So does an appraisal gap credit, if one comes up.
Miscellaneous closing costs. Notary fees, recording fees, any outstanding HOA violations or liens, natural hazard disclosure report fees, and — depending on your situation — real estate excise obligations or short-sale-specific processing costs.
Add these up and subtract them from the sale price, and what’s left is your net proceeds — the number that actually 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, timing, and whether a sale even makes sense given where you stand today. That’s a conversation worth having before you sign anything, not after.
If you’re weighing a sale and want to see these numbers run against your specific situation, I’m happy to put together a net sheet with you — no obligation, and no pressure to list.
Jeffrey Kam, MBA | Broker/Owner | Green Street Real Estate | DRE #01054411 | Serving Pasadena and the San Gabriel Valley |