What will you actually walk away with? That is the number most Las Vegas sellers care about, and it is rarely the number they hear first. The list price gets the attention. The net, what lands in your account after escrow pays everyone else, is what decides whether the move works. Here is what comes out of a sale in Las Vegas and Summerlin, which parts are set by law or local custom, and which parts are negotiated.
How the money moves at closing
- The buyer’s funds and loan arrive in escrow. In Nevada, closings run through an escrow officer working with a title company.
- Escrow orders your payoff. Your lender sends a payoff statement for the exact amount owed through the payoff date, including accrued interest. Any second loan or line of credit gets its own payoff.
- Escrow builds the settlement statement. Every charge and credit is listed and allocated to buyer or seller based on your purchase agreement and local custom.
- The deed records and funds are disbursed. Liens get paid first, then the remaining balance goes to you.
What typically comes out of a Las Vegas seller’s side
| Item | How it is set | What to know |
|---|---|---|
| Mortgage and any second loan payoff | Your lender’s payoff statement | Usually the biggest number. Request a current figure before you price, not just your monthly statement balance. |
| Brokerage compensation | Your listing agreement, plus any buyer-agent compensation you agree to | Negotiable and written into your agreements. Know your number before you list. |
| Owner’s title insurance policy | Local custom and the contract | Stewart Title’s Nevada practices guide says the seller typically pays for the owner’s policy unless the contract says otherwise. |
| Escrow fee | Local custom and the contract | The same guide describes settlement fees as typically split 50/50 unless the contract provides otherwise. |
| Real property transfer tax | Clark County rate; split per contract | $2.55 per $500 of value in Clark County. Stewart’s guide describes the tax as usually split, depending on the purchase contract terms. |
| Property tax proration | Clark County fiscal year, July 1 to June 30 | Taxes are paid in four installments. Depending on what you have paid, the proration can be a charge or a credit to you. |
| HOA items | Your association and the contract | Unpaid dues, resale package costs and any transfer fees your HOA charges. Summerlin homes often have more than one association. |
| Credits to the buyer | Negotiated | Closing cost credits, rate buydown credits and repair credits all come straight off your net. |
| Other payoffs | Varies | A leased solar system, unpaid liens or a home warranty you offered. |
The transfer tax math, and an illustration of a net
Clark County figures the real property transfer tax at $2.55 for each $500 of value. Illustration only, with assumed figures:
| Assumed sale price | $650,000 |
| Total transfer tax ($650,000 divided by $500, times $2.55) | $3,315 |
| Seller’s share if the contract splits it evenly | $1,657.50 |
| Assumed mortgage payoff | $400,000 |
| Before the other items in the table above | $248,342.50 |
From that last line you would still subtract brokerage compensation, the owner’s title policy, your share of escrow, HOA items, any credits to the buyer, and the property tax proration in either direction. Those depend on your contract and your home, which is why a generic percentage never replaces a real net sheet from your listing agent and escrow.
The items sellers most often forget
- Credits you agree to after inspection. A repair credit is a dollar-for-dollar reduction in your net. Before you agree to one, compare it to a price change. My take on offering a closing cost credit versus cutting your price goes through that tradeoff.
- A leased solar system. Whether the buyer assumes the lease or you pay it off affects both your buyer pool and your net. I covered that in selling a Las Vegas home with leased solar.
- A second loan or line of credit. Even with a zero balance, an open line can need a formal payoff and release.
- Timing of the payoff. Interest accrues to the payoff date, so a delayed closing changes the figure slightly.
Taxes after the sale
Under IRS rules for a main home, you may be able to exclude up to $250,000 of gain, or up to $500,000 on a joint return, if you meet the ownership and use tests: owning the home and living in it as your main home for at least two of the five years before the sale. Partial exclusions can apply in some situations, such as a work or health related move. Rentals, second homes and sellers who are not U.S. persons follow different rules, including federal FIRPTA withholding for foreign sellers. This is the part of the net sheet where a CPA earns their fee.
When to ask your listing agent for a net sheet
In my view the first net sheet belongs in the listing appointment, before a price is set, because it tells you the lowest price that still works for your next move. After that, ask for an updated one with every offer and counteroffer. Two offers with the same price can produce different nets once credits, who pays which fees, and the closing date are factored in. A good listing agent should walk you through those differences line by line, and if you are still choosing one, my list of questions to ask a listing agent is a good place to start.
This is general information, not tax or legal advice. Confirm specifics with your escrow officer, CPA or attorney.
Source: Clark County Recorder, real property transfer tax rate; Clark County Treasurer, Real Property Tax Information; Stewart Title, Nevada Real Estate Practices; IRS Topic No. 701, Sale of Your Home.
Geoff Zahler | Broker/Owner, Zahler Properties