What Houston Home Sellers Don't Know About Their Net Sheet

The number every Houston home seller focuses on is the list price. The number that actually matters is the net — what arrives in your account after the transaction closes. For most sellers, the difference between those two numbers is larger than they expected, and understanding it before you sign a listing agreement changes how you approach the sale.

A net sheet is a projection of your proceeds. Every agent should provide one before you list. Many do not, and the sellers who do not ask for one are the ones who call me surprised at closing. This is a walkthrough of what goes into that calculation and where the numbers come from.

The Texas Title Policy: Who Pays, and How Much

Texas is one of the few states where the seller customarily pays for the owner’s title insurance policy. This is not a law; it is a convention that can be negotiated. But in most Houston transactions, it is a seller cost, and on a $500,000 sale it runs approximately $3,000 to $3,500 depending on the underwriter. If you are coming from another state where the buyer pays for title, this is a number that will look wrong until you understand the convention.

The title policy is issued by the title company and protects the buyer against defects in the chain of title. The seller pays for it as a representation that they are conveying clean title. It is not optional; it is a standard requirement in Texas residential transactions and should be on your net sheet as a line item from the start.

Commission Structure and What It Covers

The total real estate commission in a Houston transaction is typically negotiated as a percentage of the sale price. How that commission is structured — and what portion goes to the buyer’s agent versus the listing agent — has shifted since the NAR settlement changes took effect. The short version: you should understand exactly what commission you are agreeing to, what services it covers, and whether any portion is being offered as a buyer’s agent incentive. That offer amount can affect which agents show your property and how motivated they are to close the transaction.

Commission is listed on your net sheet as a dollar amount, not a percentage, so you see the real number rather than an abstraction. On a $500,000 sale at a total commission rate of 5%, that is $25,000. It is the largest single line item on most net sheets.

Property Taxes: The Prorated Surprise

Texas property taxes are paid in arrears, meaning you pay 2025 taxes in early 2026. When you sell mid-year, the buyer will want a credit for the portion of the year you owned the property, because they will be responsible for paying the full year’s taxes at year end. This proration is calculated based on the prior year’s tax bill and the day of closing.

On a Houston suburban home with a total effective tax rate of 3.0% on a $500,000 assessed value, annual taxes are approximately $15,000. If you close in June, the buyer is owed roughly $7,500 as a credit at closing — money that comes out of your proceeds. This is not a fee; it is a reallocation of tax responsibility. But it is real money, and it surprises sellers who were not told to account for it.

The proration on your net sheet should show both the estimated credit amount and the prior-year tax figure it is based on. If your home has a homestead exemption, the assessed value (and therefore the tax base) may differ from market value, which affects the calculation.

HOA Transfer Fees and Resale Certificates

If your home is in a homeowners association — and in Houston’s master-planned communities, it almost certainly is — there are transfer-related costs that appear on the net sheet. The resale certificate is a document the HOA is required to provide to the buyer disclosing the association’s financial condition, rules, and any outstanding issues with the property. The seller pays for it. Costs range from $150 to $400 depending on the association and management company.

Transfer fees are separate and vary widely. Some associations charge a flat transfer fee of $100 to $300. Others have moved fees, capital contribution fees, or account setup fees that can push the total HOA-related closing cost to $500 or more. In a large master-planned community with multiple sub-associations, you may have transfer costs at multiple levels. All of these belong on your net sheet before you list.

Other Seller Costs That Appear at Closing

Beyond title, commission, tax proration, and HOA costs, a typical Houston net sheet includes: the seller’s attorney fee if you use one (not universal in Texas but sometimes applicable); recording fees for deed and any lien releases; overnight courier or wire fees; and any repair credits or concessions negotiated during the inspection period. That last category is the one with the most variability — a buyer who requests $8,000 in repairs or concessions after inspection is effectively adjusting your net by $8,000.

If you have an existing mortgage, your payoff amount also reduces your net. The payoff is not the same as your remaining balance — it includes accrued interest through the payoff date and any prepayment penalties if applicable. Request a payoff statement from your lender early in the listing process so this number is accurate on your net sheet rather than estimated.

Reading the Net Sheet Before You List

The net sheet your agent provides before listing should reflect all of these items at the price you are considering listing at. Ask to see what the net looks like at list price, at 3% below list (a common negotiation outcome in a balanced market), and at 5% below list. That range gives you a realistic picture of your likely proceeds under different sale scenarios, which affects how much flexibility you have during negotiation.

If an agent does not provide a net sheet before you sign a listing agreement, ask for one. If they cannot produce one, that is worth noting. Sellers who understand their numbers from the beginning of the process make better decisions throughout it.