WHAT IS YOUR NET PROFIT?
Of course, the first thing you’ll want to do when you get an offer is go directly to Section 3 of the contract and look at the offered purchase price! Everybody does!
But, before you get too excited (or disappointed) with the offered price, be sure to read through the entire offer. There are many other parts of the contract that can affect the amount of money you’ll net from the sale.
Therefore, look at the offered purchase price in conjunction with any requested seller concessions to assess what the actual offer is from the buyer.
Any conditions outlined in the contract that require a seller to do something, or pay for something, is called a seller concession, such as when a buyer asks you to help pay some of their buyer closing costs or provide them with a home warranty.
Your net profit is the total amount of money you will walk away with at closing once all transaction expenditures have been accounted for. Your net is derived by taking the purchase price on the contract and subtracting the price tag of any concessions (+) your current loan payoff (+) any additional seller paid closing costs (such as real estate fees).
You can use this handy Seller Net Calculator to see if the terms of the offer meet your overall financial goals for the sale of your home.