Nehemiah Sellers Net Sheet Calculator

FHA w/o Nehemiah

FHA with Nehemiah

Asking Price

$100,000

$100,000

Average Percentage of Reduction ₁
Usually between 3% and 7%

5%

0%

Sales Price

$ 95,000

$100,000

Commission ₂(Less Sales 7%)
Real estate commission average between 6% and 7%.

$ -6,650

$ -7,000

Less Nehemiah Fee ₃
3% of sale price + $950

$ 0

$ 3,950

Subtotal

$ 88,350

$ 89,050

Less Closing Costs₄ ( 2½ %)
Closing Costs average between 2½ % and 3½ %

$ -2,375

$ -2,500

Net to Seller₅:

$ 85,975

$ 86,550

How It Works

1. The Average Percentage of Reduction (APOR) is the average reduction from asking price to selling price. The average for most areas is from 3% to 7%. For example: if a house with an appraised value of $100,000 is sold for $96,000 then the percentage of reduction (POR) is 4%. The APOR for your area can be obtained from your local board of realtors, real estate professional or real estate section of local newspaper.

2. Sales commissions are usually between 6% and 7% unless the owners sell the property themselves, in which case the commission is 0%.

3. The Nehemiah contribution is 3% of the final sales price plus a processing fee of $950 for resale or $800 for New Construction or 1% of the final sales price whichever is less.

4. Closing costs include transfer taxes, settlement charges, inspections, etc.

5. Net for a non-Nehemiah Sale may be higher than the Nehemiah if you can sell the property for a lower percentage of reduction. However your pool of eligible buyers may be significantly smaller due to higher downpayment and closing cost requirements. This could in turn cause the property to be on the market for a longer period of time, incurring additional mortgage costs.