The net-sheet method
A net sheet starts at the price and subtracts everything that comes out of your pocket. Do it for each cash offer and for a listing, so you compare like with like.
- Start with the offer price, or for a listing, the sale price your agent's CMA suggests (see how to value your house).
- Subtract payoffs: every mortgage, home equity line and recorded lien. The closing attorney pays these from the sale money.
- Subtract the costs you pay: commission (listing only, about 5.0% to 5.5% per ShowSmartly), deeds excise tax, your attorney, and any fees in the offer.
- Subtract repairs and carrying costs that the route requires: prep, mortgage, taxes, insurance and utilities for the months until closing.
- Adjust for risk: a deal with a financing or inspection contingency can fall through, and then you start over.
Use the net proceeds calculator for the arithmetic, and the comparison tool to put a cash offer next to a listing.
Worksheet: compare up to three offers
Copy this into a notebook or spreadsheet and fill in one column per offer. The last column is a listing estimate for reference.
| Line | Offer A | Offer B | Offer C | Listing estimate |
|---|---|---|---|---|
| Buyer name and type (investor, wholesaler, iBuyer) | n/a | |||
| Headline price | $ | $ | $ | $ |
| Proof of funds seen? (yes / no / date) | n/a | |||
| Less: mortgage and lien payoffs | -$ | -$ | -$ | -$ |
| Less: commission or service fee | -$ | -$ | -$ | -$ (about 5.0% to 5.5%) |
| Less: deeds excise tax ($4.56 per $1,000) | -$ | -$ | -$ | -$ |
| Less: your attorney and other closing costs | -$ | -$ | -$ | -$ |
| Less: repairs, credits or concessions | -$ | -$ | -$ | -$ |
| Less: carrying costs until closing | -$ | -$ | -$ | -$ |
| Net to you | $ | $ | $ | $ |
| Closing date and who controls it | ||||
| Contingencies (inspection, financing, other) | ||||
| Can the buyer assign the contract? | n/a | |||
| Deposit and who holds it |
Example for scale: a $650,000 sale has deeds excise of $2,964 ($650,000 divided by $500, rounded up, times $2.28). That is the same on every route, so it will not decide between offers; the commission, repairs and discount will.
What to ask every buyer
| Ask | Why it matters | A good answer |
|---|---|---|
| Can I see proof of funds? | Many "cash" offers rest on borrowed or missing money | A recent statement or an institution letter, in writing, before you sign |
| Are you buying it yourself or assigning the contract? | Wholesalers sell their contract to someone else; see cash home buyers | A clear answer, and the contract says so. Check MGL c.112 s.87PP with your attorney if the buyer will earn a fee for finding another buyer. |
| What contingencies are in the offer? | An inspection or financing contingency lets the buyer walk away or re-price | None, or only a short inspection window with set limits |
| What closing costs do I pay? | Fees reduce your net | A written list. In Massachusetts the seller customarily pays the deeds excise tax; confirm in your contract. |
| How much is the deposit and who holds it? | The deposit is your protection if they back out | A set amount held by an attorney or title company, not by the buyer |
| Is the offer final, or can it change after inspection? | iBuyers and some investors re-price after a walk-through | The conditions for any change are written in the contract |
| Who is the closing attorney? | The buyer's attorney does not work for you | You can use your own attorney; see do I need a lawyer |
| What is the closing date, and can I stay a few days? | Gives you moving time | A date in writing and, if you need it, a short written occupancy agreement |
Deeds excise tax and other Massachusetts costs
The Massachusetts deeds excise tax is set by MGL c.64D s.1. The rate in use is $4.56 per $1,000 of price ($2.28 per $500), as reported by Amerisave and used in our net proceeds calculator. The base statute text we read shows $2 per $500, and we could not confirm the added surtax from an official page, so ask your attorney for the exact figure. By custom the seller pays; ask whether your contract changes that.
Other seller costs that appear on either route: your attorney, the municipal lien certificate and real estate tax proration, and recording and discharge fees. For a listing there is also commission and prep. See closing costs for sellers for the full list.
Reading the result
- If the highest-net offer has strings, such as a long inspection period, a re-price clause, or a buyer who will not show proof of funds, discount it. A lower offer with no strings can be better.
- If every cash net is far below your listing net, that gap is the price of speed. Decide whether it is worth it. A sale that saves four months of carrying costs may be, and a sale that saves two weeks usually is not.
- If you are unsure, get a CMA and a fresh offer in the same week so the market data match. Offers are only comparable at the same date.
- Do not let anyone rush you. The FTC advises that a buyer who pressures you to act immediately should be avoided and that you should have a lawyer review the contract (FTC).
Home Options MA does not buy houses and does not make offers. We introduce sellers to independent local cash buyers and licensed agents, who may pay us a fee for the introduction. You are free to say no to all of them.