You worked hard to get your home ready, and now you want to know the number that matters most: what you actually take home at closing. If the line items on a seller net sheet look confusing, you are not alone. With a clear read, you can plan your move, compare offers, and negotiate with confidence. In this guide, you will learn what a seller net sheet is, how each fee works in Costa Mesa and Orange County, and the simple checks to avoid last‑minute surprises. Let’s dive in.
What a seller net sheet shows
A seller net sheet is an estimate of your proceeds after subtracting payoffs, commissions, closing costs, prorations, credits, and estimated fees from the contract sale price. It is a planning tool to help you project cash at closing, compare offers, and make negotiation decisions. Your listing agent or the escrow/title company typically prepares it, and you should confirm key figures with actual payoff statements and fee quotes. It is not the official settlement statement, so final numbers can change up to closing.
Key line items to review
Sale price and mortgage payoffs
Your starting point is the signed contract sale price. From there, subtract the payoff for any mortgage, home equity line, second loan, or recorded lien. Payoff amounts include principal, daily interest through the payoff date, and any payoff or reconveyance fees. Always request a written payoff statement from your lender with an effective date so the estimate reflects real numbers.
Real estate commission
Commissions are typically shown as a combined percentage of the sale price and are often the largest single line item for a seller. The structure is negotiable and usually reflects a split between the listing agent and the buyer’s agent. Make sure your net sheet matches the percentage and any flat fees you agreed to in your listing agreement.
Escrow and title fees
Escrow fees cover the neutral third party that manages funds and documents. Title fees cover the owner’s title insurance policy and, if the buyer has a loan, the lender’s policy. In many Southern California sales, sellers often pay the owner’s title policy, while the buyer pays the lender’s policy. Who pays escrow fees can vary by negotiation. Ask your escrow or title company for an itemized fee quote specific to Orange County so your estimate reflects local practices.
Transfer and documentary taxes
California does not impose a statewide real property transfer tax beyond local documentary transfer taxes charged by counties or cities. Whether Costa Mesa or Orange County applies a transfer or documentary tax, and who pays it, can vary by jurisdiction and by negotiation. Confirm the current rules and expected payer with your title or escrow company, the Orange County Recorder/Clerk, and the City of Costa Mesa before you finalize your numbers.
Prorations for taxes and dues
Property taxes in California include a base 1 percent under Prop 13 plus local voter‑approved assessments, so the effective rate is often higher than 1 percent. Escrow prorates taxes to the closing date using the county’s fiscal year schedule. If your home is in an HOA, dues and any unpaid assessments may also be prorated at closing. Utilities can be prorated or handled outside of escrow depending on local practice.
HOA payoff and estoppel fees
If your property is in an HOA, expect fees for an estoppel or payoff letter and for delivering community documents. Any unpaid dues or special assessments are typically settled at closing or credited on the statement. Ask your HOA management company for current fee schedules and any pending assessments so your net sheet accounts for them.
Repair credits and concessions
If you agree to credits after inspections, they will appear as a seller debit on your net sheet. Alternatively, you might complete repairs before closing or set an escrow holdback to cover work after closing. Make sure the net sheet reflects the exact dollar amounts you negotiated.
Miscellaneous seller costs
Some costs sit outside of escrow but still impact your cash planning. These can include staging, media and marketing you choose to fund, a home warranty for the buyer, and moving expenses. If you are providing a home warranty, many plans range from a few hundred dollars depending on coverage.
Taxes on the sale
Your net sheet usually shows proceeds before federal and state income taxes. For homeowners who qualify, there may be a federal home sale exclusion up to certain limits, while California taxes capital gains as regular income. Because tax outcomes depend on your situation, consult your CPA or tax attorney early so you understand your potential liability and options.
Reconveyance and recording costs
When your loan is paid off, your lender charges reconveyance or release fees to remove the deed of trust. Expect recording, notary, and courier charges for the deed and any reconveyance. Your title or escrow company can estimate these with local accuracy.
Costa Mesa and Orange County details
Property tax context
Under Prop 13, California’s base property tax rate is 1 percent of assessed value, plus local assessments and parcel taxes. In Orange County, the total effective rate on many parcels often falls above 1 percent once assessments are included. For precise prorations on your sale, use your parcel number and current tax bill, and ask escrow to align with the county’s fiscal schedule for your closing date.
Title and escrow customs
In Southern California, sellers often pay for the owner’s title insurance premium, while buyers cover the lender’s policy. Escrow fees may be split or assigned by negotiation. Customs can vary by transaction, so clarify who pays what within the purchase agreement and ask your title or escrow team for a written quote that reflects those assumptions.
Transfer taxes and local checks
Some California cities add their own documentary transfer taxes, while others do not. Verify whether any city‑level tax applies to Costa Mesa and who customarily pays it in Orange County. Your escrow or title company can confirm current county and city policies and calculate the expected amount based on your sale price.
HOA prevalence and fees
Many Costa Mesa homes are part of common interest communities. Build time into your timeline for HOA document delivery and estoppel letters, and budget for any HOA transfer fees or unpaid assessments. Confirm all amounts directly with your HOA management company.
How to read and use your net sheet
Review checklist
- Is the sale price the final contract price after any credits or concessions?
- Are mortgage payoff numbers current with an effective payoff date from your lender?
- What is the exact commission percentage and are any flat fees included?
- Who is paying escrow fees, owner’s title insurance, and recording costs per your contract?
- Are county or city transfer/documentary taxes included, and who pays them?
- Are property tax prorations calculated to the correct closing date using the county schedule?
- Are HOA estoppel fees and any unpaid or special assessments included?
- Are repair credits, home warranty costs, and any other concessions listed?
- Does the estimate reflect proceeds before income taxes, and have you spoken with a tax advisor?
- Do you have a fee quote from title/escrow and a preliminary closing statement for review?
Common pitfalls
- Treating a preliminary net sheet as final when fees and prorations can shift before closing.
- Missing daily mortgage interest, reconveyance fees, or lender payoff charges.
- Overlooking HOA special assessments, move‑out, or transfer fees.
- Assuming commission structures are fixed rather than negotiated.
- Forgetting that income tax is separate from closing costs on most net sheets.
- Misidentifying who pays a fee under the purchase agreement.
Example proceeds calculation
Illustrative only. Figures vary by transaction.
- Sale price: $900,000
- Less mortgage payoff: $400,000
- Less commission at 5 percent combined: $45,000
- Less escrow, title, and recording fees (estimate 1 percent): $9,000
- Less property tax and HOA prorations (estimate): $2,500
- Less seller repair credit: $3,000
- Estimated cash to seller before taxes: $440,500
Key takeaways:
- Payoffs and commissions usually drive the largest deductions.
- Escrow, title, and transfer taxes vary by jurisdiction, so request a local fee quote.
- This example does not include potential federal or state taxes tied to your sale.
Getting accurate numbers
Documents to gather
- Most recent mortgage statement(s) and your loan servicer’s contact to request payoff statements.
- HOA contact details and notices about dues, special assessments, or pending litigation.
- Your parcel number and current property tax bill for prorations.
- The signed purchase contract including sale price, credits, and scheduled closing date.
- Any recorded liens, judgments, or loan modifications tied to the property.
Who to contact
- Your listing agent to prepare and explain a preliminary net sheet with clear assumptions.
- A title or escrow company serving Orange County for itemized title, escrow, recording, and transfer tax estimates.
- Your mortgage servicer for exact payoff amounts and reconveyance fees.
- Your HOA management company for estoppel, transfer, and payoff figures.
- Your CPA or tax attorney for advice on exclusions, capital gains, and 1031 exchange options if applicable.
Plan your next steps
Start by requesting written quotes from title and escrow, and order updated payoff statements from your lender for your target closing date. Share your HOA contact with escrow so they can obtain estoppel information early. Review your net sheet with the checklist above, then discuss adjustments to price, credits, or timing if your proceeds differ from your goals. If you want a clear, local read on your Costa Mesa sale, the Annie Clougherty Team can walk you through line items, coordinate fee quotes, and help you compare offers with confidence.
FAQs
What is a seller net sheet in California?
- It is an estimate of your cash proceeds at closing that starts with the contract sale price and subtracts payoffs, commissions, closing costs, prorations, and credits; it is not the final settlement statement.
Who pays title and escrow fees in Costa Mesa?
- In many Southern California deals, sellers often pay the owner’s title policy and buyers pay the lender’s; escrow fees are negotiable, so confirm in your contract and with your title or escrow company.
How are Orange County property taxes prorated at closing?
- Escrow prorates taxes to the closing date using the county’s fiscal schedule and the property’s parcel‑level obligations, which include the 1 percent base rate plus any local assessments.
Does Costa Mesa charge a city transfer tax?
- City and county transfer or documentary taxes vary by locality; verify current Costa Mesa and Orange County rules and who pays with your title or escrow company before finalizing your net sheet.
Are agent commissions negotiable in Orange County?
- Yes, commission rates and structures are negotiable and should match what you agreed to in your listing agreement and what is reflected on your net sheet.
Does a net sheet include capital gains taxes?
- Most net sheets show proceeds before federal and state income taxes; speak with a CPA or tax attorney to estimate your tax impact and available exclusions based on your situation.
