They are estimates and not exact. SELLERS: BUYER: DATE OF CLOSING: PROPERTY ADDRESS: CREDIT TO BUYER CREDIT TO SELLER. An experienced agent should be able to estimate your net proceeds with a high degree of accuracy, subject to change as negotiations progress throughout the transaction. They get a credit on the closing statement while the buyer gets a debit. It means all of your hard work has paid off. © HomeLight, Inc. 100 1st Street, Suite 2600, San Francisco, CA 94105. The seller’s net sheet is not an official document but an organizational worksheet that your agent will fill out to estimate how much you’ll pocket from your home sale after factoring in expenses like taxes, your real estate agent’s commission, your remaining mortgage, and escrow fees. This will show you how much you may owe in property taxes and other dues. As noted above, this document itemizes all of your expense and credits from the sale of your home. Closing Statement Purchaser – .pdf: Closing Statement Seller – .pdf: The legal forms provided herein are intended for use by attorneys only. If you as the seller offer to pay any of the buyer’s fees for obtaining a loan, you’ll likely get a version of the Closing Disclosure as well which outlines exactly what the lender’s charges are, according Michael O’Neill, an attorney with Carol Clark Law, Atlanta, who’s supervised over 3,000 closings. A buyer might be required to pay some charges, like homeowners insurance premiums or county taxes, in advance at closing. The “payoff” section of the seller’s closing statement details those amounts and any associated fees or charges. Due to privacy concerns the Seller receives a different Closing Disclosure than the Buyer. The documents are not uniform across the U.S., so the forms vary from state to state. The number you’ve been so anxious to see. The “Commission” section refers to real estate agent commissions, which are typically paid for by the seller at 5-6%, but split between the buyer’s and seller’s agent. There are many documents that home sellers need to familiarize themselves with during a property sale. The purpose of the Seller’s Closing Disclosure is to show the purchase price and itemize expenses. It can be used to close an event or a transaction. A Template, How Much Your Inspection Will Cost, And What It Will Tell You, 12 New Year’s Resolutions for a Happier, Healthier Home in 2021, SOS: I’m Selling My Home, But Junk in My Neighbor’s Yard is Turning Off Buyers, Will Subway Tiles Ever Go Out of Style? It also estimates your net profit. Closing costs for sellers of real estate vary according to where you live, but as the seller you can expect to pay anywhere from 6% to 10% of the home's sales price in closing costs at settlement. Let’s Break It Down, What It Costs to Remodel a Kitchen: Here’s the Typical Price Tag, What Should Be Included On Your Home Maintenance Checklist? Join Clever’s network. This will be the final sales price and all costs will be deducted from this number. Prior to accepting an offer to sell your home in Chicago use this page to get a better handle on your bottom line. Each part is for a particular person i.e. At the time of closing, sellers may find that they'll get money back for prepaid insurance. In the wake of the subprime crisis, the Consumer Financial Protection Bureau requires that buyers receive the Closing Disclosure, outlining loan costs among other fees and information pertinent to the borrower, no later than 3 days before closing for review. Proration of Property Taxes 3. New York Title, Abstract Services Inc. assumes no liability for the inappropriate use of said forms by unauthorized individuals, or for any irregularities that may appear therein. While this is an exciting time for any home seller, it is also one where you must be vigilant to make sure everything is as you expect. Our Partner Agents will make sure your home sells fast and for its premium price. Compatible with Windows and Mac operating systems and Google Sheets. 05 G. Initial Escrow Payment at Closing 01 Homeowner’s Insurance per month … It is the last chance for both parties of said debate or trial to state their argument, and hopefully affect the verdict or outcome in their favor. Kirk reviews the items that will be on the Closing Statement that the Seller receives. For instance, say you get billed for property taxes in February to cover the previous year. 2. Posted on October 31, 2018August 11, 2020 9 min read. Typically, real estate closing costs can run anywhere from 1 to 7 percent of the home sales price – a figure that can seriously eat into your profit margins. When you finally get to the closing on the sale of your property, your lawyer will present you with the federally-required HUD-1 Settlement Statement (the “HUD-1"). “I can get it down to about the penny,” says Lynn. As the Seller, you are primarily going to be concerned with the right side of the page This is an article which discusses and displays the new and old versions of the Good Faith Estimate of Closing Costs. You might get a document early on in your home sale that looks and feels like the closing statement—however, what you’re looking at is the seller’s net sheet. The next subhead, “Loan Charges’” details what the buyer’s mortgage lender is charging. Backing up, the current Closing Disclosure regulations are a bit more stringent on form requirements than under the HUD-1 Settlement Statement. With their help, we to put together this cheat sheet that breaks it all down into plain English. Final Closing Instructions . If you’re lucky enough to sell when the market’s on an upswing, you stand to benefit from a nice windfall. This will be reflected in the debits and credits. A Microsoft Excel workbook (.xlsx file) built in Windows 10. Here we’ll walk you through each part of the settlement statement pictured below: At the top of the document (before you get to the portion that looks like a spreadsheet) you’ll see a few boxes for inputting information that records basic details about the transaction, such as the names of the buyer and seller, the property address, and the closing date. Clever Partner Agents close deals every day. How can you compare offers if you don’t know which one will give you the most money once the deal wraps? Estoppel Fees 6. Homes Details: The seller’s closing statement is an itemized list of fees and credits that shows your net profits as the seller, and summarizes the finances of the entire transaction.Sellers can expect to pay between 6-10% of the final sale price in commissions and closing costs, so it’s nice to see exactly where that money is going. A Clever Partner Agent can help make home selling easier when it comes time to deal with closing statements. 03 Prepaid Interest ( $26.31 per day from 3/23/12 to 3/31/12)) 04 Property Taxes ( mo.) 401. The actual fees, expenses & outstanding loan balance will depend on the actual closing date & other related factors. The practice of this varies across the country. Is it the same as a HUD-1 Settlement Statement?” Answer: They are similar documents, but not actually the same thing. The worry and anxiety that comes with selling a home is lifted. Here's more on what you need to know about this important step. You will want to speak to a professional realtor for guidance. If you hire an attorney to help you finalize your deal, the document itself is usually part of the total fees for closing. Keep in mind that every seller will be paying a few fees while others can be negotiated with the buyer. Like your typical budget balancing sheet, the seller’s closing statement is organized into Debits (expenses) and Credits (deposits or increases) to the account. Stamp Tax 2. Our Chicago Seller's closing calculator is more helpful than the MLS calculator in that it automatically calculates your real estate commission, Illinois, Cook County and Chicago transfer taxes, real estate tax credits, prorated association assessments, and title charges. Final closing costs can range anywhere from 6% to 10% of the final sale price when you include commissions and third party fees. Another recent question to The Underwriter: “What’s a seller’s statement? All around, it’s the attention to detail that makes for a smooth closing! This is a document that itemizes all the charges and credits and then shows the net profit for the seller. Government recording and transfer charges are fees levied by the county, state, or municipality for recording the deed and mortgages of the new owner. Sellers can expect to pay between 6-10% of the final sale price in commissions and closing costs, so it’s nice to see exactly where that money is going. Lynn makes sure the buyer’s lender meets the deadline of supplying the buyer with the required CFPB Closing Disclosure, noting that “some lenders might not tell you [that they won’t meet the three business days before closing] requirement until right before the closing.”. Seller’s Closing Statement, Explained: Your Line-By-Line . This Closing Statement is for a real estate transaction where the transaction is a cash sale or provides for owner financing. The HUD-1 Settlement Statement. Use this expert-backed handbook to get you through each step of the home-selling process. As a seller, there is no more valuable asset than the experience of a Partner Agent on your side. A simple spreadsheet to create a closing statement for a real estate (or other) transaction. See what type of closing your state requires using the map below. It’s higher than the buyer’s closing costs because the seller typically pays both the listing and buyer’s agent’s commission — around 6% of the sale in total. Clever partners with top real estate agents from major companies like Keller Williams, Century 21, and RE/MAX. 2. They will make sure you keep as much of the sale price of your home as possible. The first part of the form, labeled “Financial,” details the price your buyer is paying, and then lists items that are debited against that price. “Title Charges Escrow” or “Settlement Charges” are all fees charged by title or escrow companies for performing tasks like notarizing signatures. The closing statement I signed netted to me the seller a different amount that was deposited into my account. In truth, they are closely the same in consideration of its use in a business transaction. Do the integrated mortgage disclosures apply to private/seller financing and/or land contracts? A seller's closing statement is much like a balance sheet. Prior to accepting an offer to sell your home in Chicago use this page to get a better handle on your bottom line. I contacted the title company and they are claiming that the amounts were altered and incorrect calculated. These are accurately itemized in the seller's closing statement. It includes items like the principal balance, interest accrued from the last payment to the day of closing, recording fee, and any statement fee the lender might charge. seller, buyer etc. There’s no single boilerplate “closing statement” form for sellers from state to state, so don’t expect your statement to look exactly like the one below. These estimates aren’t just for your peace of mind but are a key part of negotiations with buyers, says Lynn. Usually there is only one form that is used for this purpose but it has number of parts on it. This is your chance to make sure there aren’t any thousand-dollar charges listed where they shouldn’t be. You want to make sure they do not overcharge you for any services or fees. How Much Money Do You Get Back in Taxes for Buying a House? Title Search 4. If you’re closing on a sale on April 30, the yearly property tax is “prorated” or calculated for the first four months of the year, and it’s reflected in this section. How Much House Can I Afford If I Make $70,000 a Year? That means your final net proceeds shouldn’t come as a surprise when the closing statement rolls around, and you’ll know to check the numbers twice if they’re drastically different. In most cases, buyers are charged for prorations, and they show up as a debit on the buyer's closing statement and as a credit on the seller's closing statement. A closing statement is a document that records the details of a financial transaction. Other forms might have columns labeled as “Seller Charge” and “Seller Credit,” which mean the same thing. If the seller has paid insurance on your home through the end of June, for example, and closing is taking place in mid-May, the seller will get a refund for the amount of time remaining. There’s a good chance that when you sell your house, it isn’t completely paid off and you still owe on the mortgage. It separates the buyer and the seller’s statements along with the statement and claims of the broker with regards to other expenses for the property. Closing Seller Sample Statement. Meanwhile, work with a real estate agent who has a sixth sense about settlement hitches. It can be used as a speech. Here’s How Much Money You Need to Build Your Dream Home, What Upgrades Increase Home Value? The key thing to remember about a seller's closing statement is that you want to check every line in the form. Closing Protection Letter Fee: Exam and Insurance/Seller's Title Insurance: State of Illinois Policy Fee: Home Warranty to: Earnest Money held by: Payoff on Sellers prior Mortgage(s): 1. Private/ Seller Financing Q. But the key thing to remember about the costs and profit estimates on a net sheet is that they are just that. The lender likes this because they can make sure the new owner will keep up to date with all the payments associated with the home. It lists your escrow number (the transaction number of the real estate deal), when the closing is, the settlement location, and the address of the property being sold. Under Prorations/Adjustments section, you’ll see how much you might owe in property taxes (school or county taxes) or homeowner association dues for the period leading up to the time you hand over the keys. This is where a seller credit may also be listed if the buyer owes you for any prepaid taxes. In negotiations, however, it’s possible that you agreed to cover some of the fees. What goes in a Settlement Statement? From your perspective, walking away from the closing table with a check for the correct number is what’s most important. In a standard HUD-1 form, the first part is for the seller of the real estate property. A home buyer who finances the purchase will receive a closing statement … The buyer may ask you to pay for a home warranty policy, for instance, while they cover the costs for a pest inspection on your home. Sellers and buyers usually have the ALTA sent to them from the closing company at the same time. And finally, “Miscellaneous” refers to charges that are typically the responsibility of the buyer. The following calculator makes it easy to quickly estimate the closing costs associated with selling a home & the associated net proceeds. Sometimes these need to be adjusted during the duration of the sales process and you may get more than one net sheet. However, seller closing costs are deducted from the proceeds of the sale of the home at closing, so you rarely need to bring cash to closing. Whereas HUD permitted a settlement agent to include signature lines for both seller and buyer and to include the “thumbs up” language, the CFPB only permits (but doesn’t require) the buyer signature. Homebuyers, as well as home sellers, are responsible for closing costs. They work with first-time home sellers and investors with expansive portfolios. They know the ins and outs of real estate transactions. Marilyn Kennedy Melia is a longtime writer who has concentrated on personal finance subjects. At the end of the page… there it is under “subtotals”—the number of dollars due to the seller…. Simply enter your sales price, mortgage information & closing date and we'll estimate your totals. Clever’s Concierge Team can help you compare local agents and find the best expert for your search. Clever’s Concierge Team can help you compare local agents and negotiate better rates. Composite Closing Statement Form – This closing statement form is useful in comparing the payments and the obligations of the parties involved in the property transfer and closing process. Some unfortunate sellers who are “underwater” on their mortgage, meaning they owe more than the home is worth, might actually write a check, rather than walking away with one. by Marilyn Melia 19 High-ROI Improvements Buyers Love. There is both a buyer’s column and a seller’s column on this document. You can expect to pay anywhere from $300 to $2,000, depending on the complexity of the transaction. The ALTA (closing statement that you're referring to in your post) can vary. As I put everything in their hands being the title company I did not check their math and was happy with the amount so I signed. Now let’s get into the different spreadsheet sections on the closing statement. TOTAL CLOSING COSTS Closing Cost Details E. Taxes and Other Government Fees 01 Recording Fees Deed: $120.00 Mortgage: $32.00 02 F. Prepaids 01 Homeowner’s Insurance Premium ( 12 mo.)