COMPUTATION SHEET

Whenever brokers submit an offer letter for a property to sellers that are below their asking price 99.9% of the time, their next question is...

How much do I take home?

Wouldn't it be nice to have the computation of net proceeds to the seller and the total outlay for the buyer?

Benefits of preparing one:

+ This will allow parties to make decisions faster by reducing sending messages back and forth.

+ Brokers are able to check if they're selling above the zonal value and assume the correct computations for taxes.

+ Brokers are able to remember other unusual fees (e.g., business tax or Municipality tax), which are specific just to some cities.

+ Brokers are able to check their assumptions with one another (i.e., the brokers' professional fee is 3% vs. 5%).

Drawbacks:

+ None, really.

Brokers really have to prepare this document prior to closing (after the offer is accepted). So it's a matter of just rearranging the process flow and preparing it at the same time an offer is prepared.

Better yet, include a separate sheet that automatically computes the seller's net proceeds/buyer's total outlay based on different selling prices. That's what we do. The photo above is an example of the sheet I'm talking about.

And, of course, put a note to protect yourself in case zonal values are suddenly revised or if the BIR classifies the property as an "Ordinary Asset."

Good luck. 👍🏻