Selling Your Desert Second Home From the Coast: What Every Net Sheet Line Means

If you own a second home in the desert and live on the coast, the first number you want is simple. What will I actually walk away with? A seller net sheet answers that. It is also the page that confuses people most, because it is full of lines they have never seen.

Here is every line in plain words. This is a guide to what the lines mean, not a quote. Your net sheet will have your numbers, and your escrow officer gives the final ones.

What a net sheet is

A net sheet is an estimate. It starts with the price a buyer pays and subtracts what comes out before you get paid. What is left is your net. It is a forecast, so it moves as the deal moves. The final numbers come from the closing statement at escrow.

The lines, one at a time

Sale price. The top line. The price in the accepted offer.

Loan payoff. What you still owe your lender on the day escrow closes. It includes interest up to that day, so it is a little different from the balance on your last statement. Ask your lender for a payoff statement. If you own the home free and clear, this line is zero.

Commission. What is paid to the agents who represented you and the buyer. It is negotiable, and it is written in your listing agreement before anything is listed. You should see it in writing and know it before you sign. I will always say it plainly.

Escrow fee. What the escrow company charges to hold the money and papers and close the deal. Who pays it, and how it is split, can be negotiated.

Title insurance. Title insurance protects the buyer and lender against problems with ownership. In much of Southern California the seller often pays for the owner's policy, but it can be negotiated, so check what your contract says.

County transfer tax. Riverside County charges a documentary transfer tax of $1.10 for every $1,000 of the sale price, and it is customarily paid by the seller. Here is a round example, not a real sale: on an $800,000 price, that is $880. Your escrow officer will confirm whether anything else applies at your address.

HOA charges. If the home is in an HOA, expect fees for the documents the buyer must receive, a transfer fee in some communities, and any dues that are owed through closing. Ask the HOA for the cost list early.

Property tax proration. California property taxes run on a July to June year and are paid in two installments. At closing, you pay for the days you owned the home and the buyer pays for the days after. If you already paid ahead, you get part of it back on this line.

Repairs and credits. If the buyer's inspection finds items, the deal may include repairs or a credit to the buyer. These are negotiated, and they come off your net.

Reports and disclosures. Some reports are ordered at the seller's cost, such as a natural hazard disclosure report. Your agent should list which ones apply.

Prep and carrying costs. Cleaning, staging, utilities and landscaping while the home sits ready to show. These are often left off a first net sheet and they are real money.

Lines that matter more when you live far away

None of these are on every net sheet, but if you live on the coast they are worth asking about. Who has the keys and who lets people in. Who pays utilities while the home is vacant. Whether your vacant home insurance still applies while it is listed. How you will sign at closing without flying in, which is usually handled with a signing near you.

One question for your tax pro

A second home is not usually treated the same way as the home you live in full time when it is sold. I am not a tax advisor and this is not tax advice. Ask your tax pro before you list, so the number on your net sheet is not a surprise on your tax bill.

How I would use a net sheet

Ask for it before you decide to sell, not after. Ask for it at two or three prices. See which lines move and which do not. Then decide. No pressure and no pitch from me. If you want me to run one for your home, tell me where it is and what you owe, and I will walk you through every line.

My guides are open too, no form and no email needed: https://desertrealestatepartners.com/guide-resources

Laura Lake | Your Desert Real Estate Partner | DRE #01455311