A seller net sheet is a one-page estimate of the cash a homeowner will actually walk away with at closing: the sale price minus the mortgage payoff, liens, taxes, title and escrow charges, commissions, concessions, repairs and the cost of waiting. For wholesalers, a seller net sheet is the most honest negotiating tool you have, because it lets a seller compare your cash, as-is offer against listing the house on the open market, line by line, in their own numbers.
This guide is written for investors: every line item, the state differences that change the math, the August 2024 commission changes, a worked side-by-side comparison, and the honest cases where cash is the wrong answer.
What a Seller Net Sheet Actually Measures
Sellers think in sale prices, but the sale price is not what funds a move or a down payment on the next place. The net sheet converts the headline price into net proceeds, the only figure the seller can spend.
Think of it as a forecast of the closing paperwork. After closing, the real numbers appear on the final settlement statement (the Closing Disclosure or ALTA statement, depending on the transaction). The net sheet is your best estimate of that statement before anyone signs.
A seller who sees the full cost of listing often understands your offer for the first time. A seller who catches you shading the numbers will never trust you again.
Every Line Item, From Payoff to Holding Costs
Mortgage payoff, including per-diem interest
The largest deduction for most sellers is the loan payoff, and it is not the same as the “principal balance” on the monthly statement. The payoff includes interest accrued through the day the loan is paid off, plus servicer fees. The payoff statement shows the total owed and the date that figure is good through, as Nolo’s explanation of payoff statements notes. If closing slips past that date, you add the daily (per-diem) interest for each extra day.
Under Regulation Z (12 CFR 1026.36(c)(3)), a servicer generally must send a payoff statement within seven business days of a written request, with exceptions for loans in bankruptcy or foreclosure, reverse mortgages and disasters. Include every loan secured by the house, including seconds and HELOCs. Our guide to the mortgage payoff statement walks through how to read one and calculate per-diem interest.
Liens, judgments and back taxes
Title will not insure a clean transfer until recorded liens are paid or released, so judgments, mechanic’s liens, HOA liens, municipal code or utility liens and delinquent property taxes all come out of the seller’s proceeds. Pull a preliminary title report or do your own title search before you present numbers, not after.
Property tax prorations
Property taxes are split so that the seller pays for the days they owned the home in the tax period. Whether that is a debit or a credit depends on whether local taxes are paid in advance or in arrears and whether the current bill is paid. Ask the title company how proration works locally and use last year’s bill as the estimate.
Transfer and documentary stamp taxes
Many states charge a tax when a deed is recorded, and some counties and cities add their own. Who pays it is set by local custom and the contract, not by a national rule. A few verified examples:
| State | State-level tax on deeds | Notes |
|---|---|---|
| Texas, Missouri, Indiana, Colorado | None at the state level | Local transfer taxes may still apply in some places |
| Florida | $0.70 per $100 of consideration (documentary stamp tax) | Miami-Dade: $0.60 per $100, plus a $0.45 surtax that does not apply to deeds transferring only a single-family residence |
| Pennsylvania | 1% of the value of the real estate | Often collected along with an additional local realty transfer tax |
| Illinois | 50 cents per $500 of value (0.1%) | Local taxes can be added on top |
| Washington | Graduated rate based on selling price and property use | Plus a local REET from 0.00% to 2.00% by location (state schedule effective May 1, 2026) |
Sources: First American Exchange (2026 state list), Florida Department of Revenue, Pennsylvania Department of Revenue, 35 ILCS 200/31-10 and the Washington DOR REET rate schedule. Rates change, so confirm the current figure with the closing agent on every deal. For deeper local rules, see our state-by-state wholesaling guides.
Owner’s title policy and who customarily pays
The owner’s title insurance policy protects the buyer, but in many markets the seller pays for it. Old Republic Title says plainly that who pays the premium “is a matter of local custom and practice,” that sellers pay in 26 states, and that it can always be negotiated. Custom can even differ between counties in the same state. Cash buyers often agree to pay title and closing costs, a real, quantifiable benefit of an investor offer. Our guide to title insurance for investors covers the policies in more detail.
Escrow, settlement and recording fees
The closing agent charges a settlement or escrow fee, which may be split between buyer and seller by local custom. Add document preparation, courier and wire fees, and attorney fees in states where attorneys handle closings. Get a quote from your title company rather than guessing.
HOA dues, estoppel and transfer fees
In an HOA or condo association, expect estoppel or resale certificate fees, sometimes a transfer fee, plus unpaid dues or special assessments.
Agent commissions after the August 2024 changes
Commissions are negotiable and always have been. Following the NAR settlement, practice changes took effect on August 17, 2024: offers of compensation to buyer’s agents can no longer be posted on MLS platforms, and MLS participants working with buyers must sign a written agreement before touring a home. According to NAR’s own summary, those agreements must state that broker fees and commissions “are fully negotiable and not set by law.”
For a net sheet, that means two separate lines: the listing agent’s fee, and any compensation or concession the seller chooses to offer toward the buyer’s agent. Do not plug in a “standard” rate. Use the fee an agent actually quoted, or show a low and high assumption so the seller sees how sensitive the net is.
Seller concessions and buyer credits
Retail buyers often ask the seller to cover part of their closing costs. Lenders cap these: under the Fannie Mae Selling Guide, interested party contributions on a principal residence are limited to 3% when the loan-to-value is above 90%, 6% between 75.01% and 90%, and 9% at 75% or less (2% for investment properties). That is a real line on the retail column.
Repairs: before listing and after inspection
Separate pre-listing repairs (needed to sell at retail) from post-inspection repairs or credits the buyer negotiates. Price both with a real scope. Our guide on how to estimate repair costs shows how to build one from a walkthrough.
Holding costs and months on market
Every month between today and closing costs the seller money: mortgage interest (not principal, which the seller keeps as equity), property taxes, insurance, utilities, lawn care and HOA dues. Multiply the monthly carry by a realistic timeline: repairs, plus local days on market, plus time to close with a financed buyer.
How to Build a Seller Net Sheet in Seven Steps
- Set the retail price honestly. Use sold comps, not list prices, and the realistic sale price after negotiation. Our guide on how to calculate ARV covers comp selection.
- Get real payoff figures. Have the seller request a payoff statement or sign an authorization so the title company can. Add per-diem interest to your target closing date.
- Run a preliminary title search. List every lien, judgment and delinquent tax amount.
- Request a closing cost estimate from the title or escrow company. Ask for transfer tax, settlement fee, owner’s policy premium and local custom on who pays each.
- Price the repairs and timeline. Scope pre-list repairs, estimate inspection credits, and count the months of carry.
- Build two or three columns. Retail listing after repairs, listing as-is, and your cash offer. Same line items in every column, even when a line is zero.
- Walk through it with the seller and leave them a copy. Let them change any assumption they disagree with.
Side by Side: Cash As-Is vs. Listing Retail (Hypothetical)
The figures below are a HYPOTHETICAL example, not a real property. Assume a house with a $300,000 after-repair value that needs about $30,000 of work, a $120,250 mortgage payoff, monthly carrying costs of $1,400 (interest, taxes, insurance, utilities), an assumed 5% total commission chosen only for illustration, and an assumed 0.5% transfer tax paid by the seller. In the cash column, the buyer pays title and settlement costs by contract.
| Line item | List retail after repairs | List as-is | Cash offer, as-is |
|---|---|---|---|
| Sale price | $295,000 | $245,000 | $195,000 |
| Mortgage payoff incl. per diem | -$120,250 | -$120,250 | -$120,250 |
| Commissions (assumed 5%) | -$14,750 | -$12,250 | $0 |
| Seller concession to buyer | -$4,000 | -$3,000 | $0 |
| Pre-listing repairs | -$30,000 | $0 | $0 |
| Post-inspection repairs/credits | -$2,500 | $0 | $0 |
| Owner’s title policy | -$1,500 | -$1,500 | $0 |
| Escrow/settlement fees | -$900 | -$900 | $0 |
| Transfer tax (assumed 0.5%) | -$1,475 | -$1,225 | -$975 |
| Property tax proration | -$1,200 | -$1,200 | -$1,200 |
| HOA estoppel/transfer | -$300 | -$300 | -$300 |
| Holding costs | -$7,000 (5 months) | -$4,200 (3 months) | -$1,400 (1 month) |
| Estimated net to seller | $111,125 | $100,175 | $70,875 |
Read that honestly. In this example the cash offer nets about $40,250 less than a successful retail sale and about $29,300 less than listing as-is. Removing commissions, repairs and closing costs shrinks a $100,000 price gap to roughly $29,000 to $40,000 on the net, but does not close it. The seller buys speed, certainty, no repairs, no showings and no financing risk with that difference.
The gap shrinks when the retail plan goes wrong, which is common. If the repairs run $10,000 over budget, the house sits three extra months ($4,200 more carry) and the seller takes a $10,000 price reduction, the retail net drops to about $87,475. That still beats cash, but now the difference is $16,600 against a much riskier path. If the seller has no cash to fund $30,000 of repairs at all, the retail column is not available, and the real comparison is listing as-is versus cash.
Your cash price itself should come from your buyer’s math, not from what fits the seller’s hopes. Run it through the MAO calculator first, then build the net sheet around that number. Our guide on how to write a wholesale offer covers turning the figure into a clean contract.
Printable Seller Net Sheet Checklist
Fill every column for every line, even if the answer is zero.
- Price: realistic sale price per scenario (sold comps, not asking prices)
- Loans: first mortgage payoff, second mortgage, HELOC, per-diem interest to closing, payoff and reconveyance fees
- Liens: judgments, mechanic’s liens, municipal and code liens, HOA liens, delinquent property taxes
- Taxes: current-year property tax proration, state and local transfer or documentary stamp tax
- Title and closing: owner’s title policy (if seller-paid locally), settlement or escrow fee share, document prep, attorney fee, wire and courier fees
- HOA: unpaid dues, special assessments, estoppel or resale certificate fee, transfer fee
- Agents: listing agent fee, any compensation offered toward the buyer’s agent
- Buyer asks: closing cost concessions, home warranty, post-inspection repairs or credits
- Prep: pre-listing repairs, cleaning, staging, junk removal, utilities to keep the house showable
- Time: months of carry multiplied by monthly interest, taxes, insurance, utilities and upkeep
The Ethics: Let the Numbers Speak
The temptation is obvious. If you inflate the retail repair estimate, stretch the days on market or invent a commission rate, the cash column looks better and you win the contract. Do not do it. Misrepresenting a seller’s alternatives can expose you to misrepresentation claims, and sellers talk to agents, relatives and neighbors. One inflated net sheet costs you every referral that seller would have sent.
Use sold comps the seller can look up, cite each fee’s source, label every assumption and give the seller the sheet. If the retail column wins, say so. Our guide on negotiating with motivated sellers covers how to have that conversation without losing the relationship. Victoria teaches this exact approach in the mentorship program: a seller who trusts your math is worth more than one contract.
When Your Cash Offer Is the Wrong Choice for the Seller
Be ready to tell a seller to list. A cash offer is usually the wrong fit when:
- The house is close to retail-ready. If it needs paint and carpet, the repair savings are small and the retail column wins by a wide margin.
- The seller has time. No foreclosure date or relocation. Time is what the cash discount buys, and this seller does not need it.
- The seller can fund repairs. Savings or a contractor relative turn the retail column into a real option.
- Your number only works if you shade the comps. Walk away.
Cash fits when certainty, speed and condition outweigh the dollars: an inherited house full of belongings, a foreclosure deadline, a house that will not pass a lender’s appraisal, or tenant problems. Pushing cash outside those situations costs beginners money and reputation, because those contracts tend to cancel at the first agent’s opinion.
Capital Gains Context: The Section 121 Exclusion
Net proceeds are not the same as taxable gain, and sellers sometimes ask about taxes while reviewing the sheet. Under IRC Section 121, a homeowner can generally exclude up to $250,000 of gain on the sale of a main home, or up to $500,000 on a joint return, if they owned and used it as a residence for at least two of the five years before the sale, and did not use the exclusion on another home in the prior two years. See IRS Topic 701 and IRS Publication 523, which also shows selling expenses being subtracted from the selling price to arrive at the amount realized.
Inherited homes, rentals and partial exclusions have their own rules, so send tax questions to a CPA. Your job is to show the cash, not compute the tax.
Seller Net Sheet FAQ
Who prepares a seller net sheet?
Listing agents and title or escrow companies commonly prepare them, but a wholesaler can build one too, as long as every assumption is labeled. Get closing cost figures from your title company so they are local.
Is a net sheet the same as a settlement statement?
No. The net sheet is a forecast made before or during negotiation. The settlement statement is the final accounting prepared by the closing agent, and it controls where every dollar goes.
Should a wholesaler include the assignment fee on the seller’s net sheet?
The seller’s net is based on the contract price the seller signs, so the assignment fee does not change their bottom line. Be truthful about your role, and follow your state’s disclosure rules.
What if the net sheet shows the seller owes money at closing?
That is an underwater seller. Neither a listing nor a standard cash sale works unless the seller brings cash to closing or the lender agrees to accept less. Look at short sale wholesaling or creative structures instead.
Keep sharpening your offer math
Show sellers the real numbers
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