What Your Net Sheet Actually Tells You

Most sellers have done the math in their heads long before they sit down with an agent.

They know the approximate sale price. They know what they owe on the mortgage. The difference, in their mind, is what they'll walk away with. It's a reasonable assumption, but it's also usually wrong (by a margin that can run anywhere from $40,000 to over $100,000 on a Monterey Peninsula home).

The document that closes that gap is called a net sheet. Understanding it (really understanding it, line by line) is one of the most useful things a seller can do before accepting an offer. What follows is a plain-language walk-through of every figure that belongs on one, including the items that most sellers have never thought to ask about.

What a Net Sheet Is (and When You Should Have One)

A net sheet (sometimes called a seller's estimated proceeds sheet) is a projection of what you will actually receive after a sale closes. A good agent runs three versions: one before you decide to list, so you can make an informed decision about timing and price; one when you receive each offer, so you can compare offers accurately; and an updated version if the buyer requests a repair credit after inspections.

If you've never seen a net sheet before the closing table, something went wrong.

The Line Items, Explained

Here is what a typical net sheet looks like on a Monterey Peninsula home, and what each number actually means. The figures below are illustrative, based on a hypothetical $1,600,000 sale, and will vary depending on your specific circumstances. Always confirm exact numbers with your escrow officer.

1) Sale Price

Your starting point. Everything below is subtracted from this number. On our hypothetical $1,600,000 sale, this is where the calculation begins.

2) Commission

The most visible cost of selling. In the post-Sitzer landscape, commission structures are now explicitly negotiated rather than assumed. What matters here is that buyer's agent compensation now appears as a distinct line item rather than a buried convention. On a $1,600,000 sale, total commission might range from $80,000 to $112,000, depending on the agreed structure.

3) Escrow Fees

In Monterey County, escrow fees are typically split equally between buyer and seller. The seller's share is generally calculated as a base fee (around $400–$600) plus approximately $2 per $1,000 of purchase price. On a $1,600,000 sale, expect the seller's escrow fee to fall somewhere between $3,200 and $4,000. These figures vary by escrow company, so you'll want to confirm the exact fee schedule before you list.

4) Owner's Title Insurance Policy

In most Monterey County transactions, the seller pays for the owner's title insurance policy (the policy that protects the buyer against defects in the title that existed before the sale). On a $1,600,000 sale, this typically runs between $3,500 and $5,500, depending on the title company and the complexity of the title history.

5) County Transfer Tax

California imposes a documentary transfer tax of $1.10 per $1,000 of sale price at the county level. On a $1,600,000 sale, that's $1,760. Some cities within Monterey County add their own transfer tax on top of this, so confirm whether your specific city imposes an additional charge.

6) Mortgage Payoff

This is not simply your current balance. The payoff quote your lender provides includes interest accrued through the projected closing date, and it carries an expiration. If closing is delayed past that date, a new payoff quote is required, and the number will be slightly higher. If your loan has a prepayment penalty, that also appears here. Most modern mortgages do not, but it's worth confirming.

7) Property Tax Prorations

California property taxes are paid in two installments. At close of escrow, the taxes are prorated between buyer and seller based on the closing date. If you've already paid taxes covering a period the buyer will occupy, you receive a credit. If taxes are owed for a period you occupied, you pay. The direction and size of this adjustment depends on when you close. It's rarely zero, and it sometimes surprises sellers who assumed they had no tax exposure.

8) Repair Credits and Concessions

If the buyer's inspection uncovered issues and you agreed to a credit rather than a repair, that amount comes directly off your net. A $20,000 credit on a $1,600,000 transaction may feel modest — but it lands on your net sheet the same as if you'd written a check.

The Five Things Sellers Most Often Miss

The line items above are the ones most sellers have at least heard of. These are the ones that tend to surface as surprises at the closing table.

1) HOA Transfer and Document Fees: If your property is in a homeowners association (common in Pebble Beach, parts of Carmel Valley, and several planned communities) the seller typically pays to transfer HOA documents to the buyer and to obtain a status letter confirming assessments and dues. These fees range from $500 to $2,000 and are easy to overlook in early projections.

2) Natural Hazard Disclosure Report: Mandatory in California. Seller-paid. Typically $100–$200. Small enough to forget, but consistent enough to budget for.

3) Home Warranty (if offered): Some sellers offer a buyer's home warranty as part of negotiations, particularly on older homes where buyers have concerns about systems and appliances. At $500–$800, the cost is modest. But it belongs on the net sheet, not as a surprise concession mid-transaction.

4) Local Compliance Requirements: Depending on the city, you may be required to verify smoke detector placement, water heater strapping, or low-flow fixture compliance before close. In some cases, there are retrofit costs involved. These requirements vary, and confirming them early prevents last-minute complications.

5) Capital Gains (the number behind the net): This is the most consequential item on this list, and the only one that doesn't appear on the net sheet at all. Your net proceeds (what you walk away with after all transaction costs) are not the same as your taxable gain. Your gain is calculated from your adjusted cost basis, not your sale price. These can be dramatically different numbers, particularly for sellers who have owned their homes for decades and made capital improvements over time. A conversation with a CPA before you list (not after) is the responsible way to understand this.

Why the Net Sheet Is the Only Honest Way to Compare Offers

A higher offer price does not always produce a higher net. Consider a straightforward example:

Offer A is $60,000 higher. But after a repair credit and closing cost concession, Offer B nets more (and with fewer contingencies and a shorter timeline). Without a net sheet, the "obvious" choice is wrong.

This is not a rare edge case. It happens regularly. A seller without a net sheet for each offer is comparing prices, not outcomes.

What a Net Sheet Should Look Like in Practice

A well-prepared net sheet is not a one-page summary with three numbers on it. It accounts for every line item discussed above, is updated each time a material variable changes, and is presented alongside each offer you receive.

It should also be readable. If the agent can't explain every line in plain language, that's a problem. This is a multi-million-dollar transaction. The financial logic behind it should be transparent.

Remember that the goal isn't just selling the home. The goal is understanding, before you sign anything, exactly what you'll walk away with (and why).

A Note for Sellers Who Are Still in the Planning Stage

If you are considering a sale in the next one to three years, a preliminary net sheet is a useful planning tool. It doesn't require a listing agreement. It doesn't commit you to anything. It simply gives you accurate numbers to work with.

The Ruiz Group runs preliminary net sheets as part of early seller consultations, at no charge and with no obligation. The goal is the same as it's always been: to make sure sellers understand the financial picture before they make one of the most consequential decisions of their financial lives.

Related reading: The Truth About Real Estate Commissions After the Sitzer Lawsuit  ·  All About Capital Gains Taxes  ·  What Is Title Insurance?