Seller Net Sheets in Colorado: What Your Seller Actually Walks Away With

Every seller does the same math in their head. Sale price minus what they owe on the house equals what they walk away with.

A $500,000 sale with a $310,000 loan balance? They're thinking $190,000.

On a typical Colorado closing, the real number is more like $155,000. That $35,000 gap is where listing conversations go sideways, where offers get accepted for the wrong reasons, and where you get the awkward phone call the week before closing.

A seller net sheet closes that gap before it becomes a problem. Here's what goes on one in Colorado, where sellers get surprised, and how to use it as a listing and negotiating tool instead of just a form.

What a net sheet is (and isn't)

A seller net sheet is an estimate of the seller's proceeds: sale price, minus every payoff, fee, credit, and proration that comes out of the seller's side of the settlement statement.

It is not the final settlement statement. The final numbers come from actual payoff statements, the actual tax figures, the actual HOA fees, and whatever the contract ends up saying. A good net sheet gets you within a small margin. A bad one — or no net sheet at all — leaves your seller anchored to a number that was never real.

What comes out of a Colorado seller's proceeds

Most of this is negotiable in the contract. What follows is what's common on the Front Range, not what's required.

1. The mortgage payoff — which is not the balance on the statement

This is the single most common surprise. Mortgage interest is paid in arrears, so the payoff is the principal balance plus interest accrued through the payoff date, plus any fees the servicer adds. It is always higher than the "principal balance" line on the monthly statement.

Also on the payoff list: second mortgages, HELOCs (which have to be paid and closed so the lien can be released), and any judgments or liens that show up on the title commitment.

2. Commission

Whatever the listing agreement and the contract say. Since the 2024 changes to how buyer broker compensation is handled, it's worth confirming exactly what the seller agreed to pay — listing side, buyer side, or both — and making sure the net sheet reflects that agreement, not an old habit.

3. Seller concessions

Closing cost credits, rate buydowns, repair credits after inspection. A concession is dollar-for-dollar out of the seller's pocket. Sellers tend to think of the price and the concession as two separate things. They aren't. More on that below.

4. Owner's title insurance policy

In most Front Range transactions, the seller pays for the buyer's owner's policy. It's a negotiated item in the Colorado contract, so check the box that was actually checked. The premium is based on the sale price, so it moves when the price moves.

5. Closing fee

The title company's settlement fee is commonly split between buyer and seller. Again — whatever the contract says.

6. Property tax proration (the Colorado-specific one)

This is the line that confuses sellers who moved here from somewhere else.

Colorado property taxes are paid in arrears. The taxes for 2026 aren't due until 2027. So when a seller closes in June, they've lived in the house for half the year and haven't paid a dime of that year's taxes. At closing, the seller credits the buyer for the taxes from January 1 through the day before closing, and the buyer pays the full bill when it comes due next year.

The most common approach bases the proration on the prior year's tax amount. It shows up as a charge to the seller, and sellers who are used to prepaying taxes are often certain it's a mistake. It isn't.

7. HOA fees

Status letter fees, transfer fees, working capital or "record change" fees, plus any unpaid dues or special assessments. The contract allocates who pays which. These vary a lot by association and management company, so the net sheet should use real numbers when you can get them.

8. The small stuff

Tax certificate, recording fees for lien releases, final utility reads, and wire or courier fees. Individually small. Together they're still real money, and leaving them off is how a net sheet ends up a few hundred dollars light.

A worked example

Here's a $500,000 sale closing June 30. These numbers are illustrative only — not a quote, not a rate, and not typical of any specific file. Your actual premium, fees, and taxes need to come from real figures.

Line item	Assumption	Amount
Sale price		$500,000
Mortgage payoff	$310,000 principal + interest to closing + fees	–$311,200
Commission	5% total (negotiable)	–$25,000
Seller concession	Buyer closing cost credit	–$5,000
Owner's title policy	Placeholder — get a real quote	–$1,500
Closing fee (seller half)	Placeholder	–$300
Property tax proration	$2,600 prior-year tax × 181/365 days	–$1,289
HOA status letter / transfer fees	Placeholder	–$300
Tax cert, release recording, misc.	Placeholder	–$50
Estimated net to seller		$155,361

The napkin math said $190,000. The net sheet says about $155,000. The difference isn't hidden fees. It's the stuff nobody wrote down.

Where sellers get surprised

Closing between January and April

In Colorado, the prior year's taxes can be paid in two halves (end of February and mid-June) or in full by April 30. If a seller closes in March and hasn't paid last year's bill, they can end up paying last year's full taxes plus this year's proration at the same closing.

Using the same $2,600 tax bill and a March 15 closing: $2,600 for last year, plus about $520 for January 1 through March 14. That's roughly $3,120 in taxes on one settlement statement. If the loan has an escrow account, confirm whether the lender already paid it — and remind the seller that any escrow balance refund comes from their lender after closing, not on the settlement statement.

The payoff that's higher than they expected

Order the payoff early. Loan modifications, deferred balances, forbearance, and old second mortgages all show up here. A net sheet built off the monthly statement instead of a real payoff is a guess.

Liens they forgot about

A judgment from years ago, an old HELOC that was paid down but never closed, a mechanics lien from a contractor dispute. The title commitment will find them. It's better to find them before the listing appointment than the week before closing.

Nonresident sellers

If the seller isn't a Colorado resident, Colorado generally requires withholding on sales over $100,000 — the lesser of 2% of the sale price or the net proceeds — unless an exemption applies. Foreign sellers may also be subject to federal FIRPTA withholding. Both come off the top, and both should be on the net sheet. The seller's CPA should be part of that conversation.

Use it to compare offers, not just price them

This is where a net sheet earns its keep. Two offers:

• Offer A: $505,000 with a $10,000 seller concession
• Offer B: $498,000, no concession

Most sellers look at the top line and want Offer A. Run the math at a 5% commission:

	Offer A	Offer B
Price	$505,000	$498,000
Concession	–$10,000	$0
Commission (5%)	–$25,250	–$24,900
Net before other costs	$469,750	$473,100

The "lower" offer nets the seller about $3,350 more — and that's before financing type, appraisal risk, and closing date enter the conversation. A seller who sees it side by side makes a better decision. A seller who only hears the prices usually picks the bigger number.

When to run a net sheet

• Before the listing appointment. It sets expectations and shows the seller you did homework. It also flags problems early — like a seller who doesn't have enough equity to sell without bringing money to closing.
• At each price reduction. The seller should see what the reduction actually costs them, not just the new list price.
• On every offer. Especially multiple offers, and especially offers with concessions.
• After inspection negotiations. A repair credit changes the net. Show it.
• A few days before closing. Compare the net sheet to the draft settlement statement so nothing on closing day is a surprise.

The short version

A net sheet is five minutes of work that prevents most of the bad conversations in a listing. Use real payoffs, real HOA numbers, and the actual contract terms whenever you have them. When you don't, say so on the sheet. A clearly labeled estimate builds more trust than a precise-looking number that turns out to be wrong.

Who pays for title insurance in Colorado?

It's negotiable in the Colorado contract. On the Front Range, the seller commonly pays for the buyer's owner's policy, and the buyer pays for the lender's policy if there's a loan. Always go by what the contract actually says.

Why is there a property tax charge on my settlement statement if my taxes are paid?

Colorado property taxes are paid a year in arrears. Paying last year's bill doesn't cover the months you've owned the home this year. The seller credits the buyer for this year's taxes through the closing date, and the buyer pays the full bill when it comes due.

Why is my payoff higher than my loan balance?

Mortgage interest is paid in arrears, so the payoff includes interest accrued through the payoff date, plus any servicer fees. The balance on your monthly statement doesn't include that.

How accurate is a seller net sheet?

It depends on the inputs. With a real payoff, actual HOA fees, and the contract terms, it should be close. With estimates, treat it as a range. The final numbers come from the settlement statement.

Does the net sheet include capital gains taxes?

No. A net sheet shows proceeds at closing. Whether the sale creates a tax obligation depends on the seller's situation and is a question for their CPA. The exception is required withholding, such as Colorado nonresident withholding or FIRPTA, which does come out at closing.

When will a seller get their escrow account refund?

After closing, directly from their lender, once the loan is paid off. It doesn't appear on the settlement statement, so it isn't on the net sheet either.