What is a Net Sheet?

In every home purchase and home sale, it costs money; money to buy and money to sell. The listing price of the home is not the amount of money the seller will be walking away with.

When you think of net, think AFTER. Just like your paycheck, you get paid a gross amount (before taxes), but you receive (take home) a net amount. You will receive an amount after all expenses have been paid.

Every home sale is different. But some of the seller charges could include, tax service fees, maybe the title policy, compensation to Realtor(s), pro-rated taxes, courier fees, title closing fees, liens, 2nd mortgages, unpaid HOA Fees, etc.

Why Do Realtor Fees Seem So High?

The gross amount that you see here is usually SPLIT between two Brokerages, the listing company and the buyer’s agent company.

From each split, USUALLY, one third will go to the Brokerage, this is the company that trains the agent and provides tools and software. It should be noted every company has a different split with their agent depending on experience, number of sales, what the brokerage provides, etc.

Another one third goes to pay taxes. All Realtors are self employed and pay social security tax and federal income tax.

The final one third goes to the Realtor personally. Out of that one third, Realtors must pay the items below to have and maintain a Real Estate Business. Instead of having a storefront, Realtors must pay for the items below to grow, maintain and operate their business. These are not cheap or unnecessary expenses. The Realtors who do not pay for the optional things below usually get out of the business because they cannot grow their business without all of these things. This is one of many reasons why there is such a high turnover rate with Real Estate agents. It is VERY expensive just to have and keep a real estate license.

A NEW AVERAGE Realtor sells between 4 & 6 homes per year. A seasoned Realtor usually sells between 10 & 12 homes per year.