Does it cost money to sell your home? The answer to this is yes. Even as the seller, there are many unexpected costs you’ll likely have to pay to get your home sold. Not preparing for this can be a costly problem, especially if you just want to sell your home fast. Take a look at the most common costs sellers experience when listing their home and selling traditionally.
In most transactions, buyers pay most of the closing costs. This is generally up to five percent of the property’s selling price. In some cases, sellers may have to pay these costs as well. Most commonly, the closing costs seller’s pay are much less, usually no more than two percent of the sales price of the home. This may include HOA fees, property taxes, and escrow expenses.
Also, read the terms of your contract. Sometimes, buyers will negotiate a reduction in closing costs by splitting those costs with the buyer. In a buyer’s market, where you want to sell fast, you may agree to do this because it may encourage the home buyer to invest sooner.
Real Estate Agent’s Costs
Real estate agents will generally charge about six percent of the home’s selling price in commissions. This is split, usually in half, between the seller’s and buyer’s agents. That amount comes out of the final price agreed upon within the contract you agree to with the buyer.
You cannot get rid of this fee, though you may be able to reduce it through negotiation. Agents work to provide services to you, including the marketing to list the home, their time, and their expertise. Be sure to factor that into the list price of your home and the amount you agree to sell for before moving forward.
Real Estate agents will charge about six percent of the home’s selling price.
Transfer Tax Costs
In some areas, you may pay a transfer tax. This is an amount paid by sellers to transfer the taxation on the property to the new owners. The costs range by the city but can be as much as $750 in some areas.
Interior Cleaning Costs
Even if you maintain your home well, there will be a cost to cleaning it and making it ready for buyers. This includes carpet cleaning, which can range from $200 up to $1000 depending on how many carpets are present. It may also include an overall top-to-bottom cleaning, dusting, and freshening up of the home. That may add another $100 to $300 onto the costs. You can save some of this by doing the work yourself, but it may be easier to get some help if you are trying to move at the same time.
The Cost of Home Repairs
Most property owners will need to make some adjustments to their home to ensure it is in the best condition possible before listing it for sale. These costs depend on the problems present. For example, you don’t want a leaky faucet to cause a home buyer to avoid your home because he or she is worried about the plumbing.
Another key time when home repairs end up costing a seller is during the home inspection. At this point, you have the buyer under a contract to buy, but problems arise, causing them to wonder what to do. You could pay for the repairs to the leaky roof or chipping paint, though, so they don’t back out of the deal. It’s hard to put a price on the cost of home repairs because they depend on your home’s condition. You should budget for some minor repairs, even in newer homes.
You May Need to Stage the Home
Home staging is a valuable investment. It helps homebuyers see themselves in the home. It can also help if you already moved out of the home and it is vacant. Having a staging company set it up allows for people to be able to visualize how the space may work for their needs. The cost of staging ranges based on the size and scope of the home. You can expect to pay between $300 and $500, sometimes more in some areas.
You May Need to Do Interior Painting
Homebuyers want to see a home that they do not have to do a lot of work with before moving into, and they may not like your taste in colors and patterns. This is when you want to do some interior painting. Try to avoid doing this yourself unless you have a lot of time to dedicate to getting it just right. Use neutral colors to cover up bright red walls and other out-of-the-ordinary looks. You can budget between $1000 and $1500 for interior painting depending on the home’s size.
You May Need to Update the Landscaping
Trimming trees, ensuring the grass is green and growing, and cleaning up the yard, in general, are all important steps to give your home curb appeal. It is quite important to invest money (or time) into getting the exterior looking good. Sometimes, the home or decking may need paint or other updates, too. It’s worth investing $500 or so to do this.
Other Fees You May Need to Pay
In some situations, there are other fees that you need to pay for, including title insurance for the buyer, which can cost up to $1000. The buyer purchases lender title insurance and the seller typically pays buyer title insurance. There may be a concern with mortgage payoff, too. You may owe a bit of extra on utilities, as well. You may owe a portion of property tax for the amount of time you are living in the home during the year. Come tax time, you may also have to pay capital gains tax, a fee paid if you have made money on the sale of the home over what you purchased it for originally.
Are You Looking to Sell Your Home?
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