The Seller’s Net Sheet Deep Dive: Understanding Every Line on Your Closing Statement

Previous posts in this series have introduced the concept of the seller's net sheet – the document that tells you what you'll actually walk away with from your home sale. This post goes deeper: a complete, line-by-line explanation of what appears on the closing statement and what each item means.

Review this before your closing. Bring questions to your attorney. Nothing on your closing statement should be a surprise.

The Gross Sale Price

The first line is the purchase price – the agreed contractual price of the property as specified in the signed contract of sale. This is the headline number, and every other line below it reduces it toward your net.

Real Estate Agent Commission

This is typically the largest single deduction. The commission is expressed as a percentage of the sale price and covers the total brokerage compensation for the transaction – both the listing side and the buyer's agent side, as negotiated and documented in your listing agreement.

Confirm that the total commission percentage and dollar amount match what your listing agreement specifies. If you negotiated any modifications to the standard split during the transaction, confirm those are reflected accurately.

New York State Transfer Tax

As covered in the dedicated transfer tax post: 0.8% of the sale price, paid by the seller. On a $700,000 sale, this is $5,600. On a $1,000,000 sale, it's $8,000.

If your sale is above $3 million, the applicable rate increases. Confirm the rate with your attorney for higher-priced transactions.

New York City Transfer Tax (If Applicable)

For properties within the five boroughs of New York City, the NYC RPTT is an additional seller expense: 1% for residential sales under $500,000, 1.425% for residential sales at or above $500,000.

Real Estate Attorney Fee

Your attorney's fee for representing you through the contract and closing process. Typically $1,500 to $3,500 for standard residential transactions. This should have been discussed and agreed upon when you engaged your attorney.

Mortgage Payoff

If you have a mortgage on the property, the outstanding balance is paid at closing from the proceeds. The exact payoff amount – principal balance plus interest accrued through the closing date – is obtained from your lender and is typically good through a specific date (the "good through" date). Confirm that your closing is scheduled before or on the good through date, or request an updated payoff figure.

Also confirm that the payoff figure includes any prepayment penalties if applicable.

Prorated Property Taxes

Property taxes in New York are typically paid in arrears – you pay this year's taxes sometime after they accrue. At closing, you credit the buyer for the portion of the current tax period that has elapsed but for which taxes haven't been paid.

The calculation depends on your local tax calendar and the exact closing date. Your attorney will calculate this. Confirm that the period covered and the daily tax rate used are accurate for your municipality.

Prorated HOA or Common Charges (If Applicable)

If your property has monthly HOA fees or condominium common charges, any prepaid amounts for periods after the closing date are credited to you; any accrued but unpaid amounts are debited. The proration uses your exact closing date.

Flip Tax (If Applicable)

For co-op and some condominium buildings, a flip tax is charged at closing. The amount and calculation method (flat fee, percentage of price, percentage of profit) are specific to your building's governing documents. Confirm the exact amount with your building management before closing.

Title Search and Insurance Costs (If Any)

In some transactions, the seller contributes to title-related costs. While title insurance premiums are most commonly a buyer cost in New York, confirm with your attorney whether any title-related fees appear on your side of the closing statement.

Satisfaction of Liens and Judgments

If there are any outstanding liens against the property – mechanics' liens from contractors, judgment liens, tax liens – these must be satisfied at closing. The amounts appear as deductions from your proceeds. If you're aware of any liens, discuss them with your attorney before closing to understand the payoff amounts and confirm that satisfaction of the lien is properly arranged.

Escrow Holdback (If Applicable)

In some transactions, the parties agree to hold back a portion of the proceeds in escrow pending completion of specific items – repairs that were agreed to but not yet completed, or resolution of a specific dispute. Any such holdback reduces your immediate proceeds at closing.

Closing Costs You've Already Paid

Some seller costs are paid before closing – pre-listing repairs, professional photography, staging – and don't appear on the closing statement because they've already left your account. These are real costs of your sale that should have been included in your net sheet from the beginning.

The Bottom Line

After all deductions, the closing statement shows your net proceeds – the amount that will be wired to your bank account at or shortly after closing. Verify this against the net sheet your agent prepared before listing. The two should be consistent, with any differences explainable by the final closing date (which affects prorations), the final mortgage payoff amount, and any concessions or adjustments that occurred during the transaction.

I make sure every seller I work with understands their net sheet before they list and has no surprises at the closing table. If you want to know exactly what you'd net from a sale of your New York home, let's calculate it together. Call me at (321) 447-4259 or visit movewithricky.com.

 

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Rakesh (Ricky) Khanna | Licensed Real Estate Salesperson
Better Homes and Gardens Real Estate Realty Connect
Call or text: (321) 447-4259 | movewithricky.com