If you’re selling your house, you probably know how much you are hoping to make from the sale in total. But what you may not have calculated is the overall cost to seal the deal. While some of the major costs of selling a home will come out of the sales proceeds, you will not only want to be prepared for those losses, but also have a plan for covering the up front expenses.
Below, we’ve broken down the costs of a selling a home into two categories: before listing and at closing.
In order to get your property in tip top shape for the day you sell it, you will need to invest a little bit of money into your home before listing it. These costs will need to come out of your pocket, but will assist you in negotiating top dollar for your property.
- Fresh Paint, Flooring, and Other Fix-ups: Freshening up a home before selling can make a huge improvement. Updating the carpet, painting the walls, replacing the trim, can help you freshen up your property for showing. The good news about this item is that you have a bit more control over your expenses, although you may run into items you must fix in order for a buyer to find the home appealing.
- Exterior Updates and Landscaping: Don’t neglect the outside of your house when freshening things up. This may mean spending a bit more on fresh paint for the outside, as well as having the yard professionally landscaped. If nothing else, it is important for the yard to be cared for regularly.
- Professional Cleaning: It may be a good idea to have professionals come and deep clean your home. This may even save you money on replacing carpets or other items that simply need a refresh.
- Staging: This is optional, but it is a good tip for boosting the perceived value of your home. Whether you professionally stage your home, or choose to do it yourself, this can help make your property more appealing.
- Inspections: If you have suspicions about issues in your property that will need to be corrected before the buyer will accept a sale, it may be a smart move to have someone inspect your home and possibly pay for items to be fixed upfront, before a buyer is involved.
- Storage: If you chose to declutter your home, you may have to pay a monthly fee to store unnecessary items while you show your home.
While these costs come out of the total of your sale, it is important to be aware of them as you consider any offers.
- Real Estate Agent Commissions: This is typically around 5-6% of the sales price, and you as the seller will usually be expected to pay it all.
- Closing Costs and Potential Credits: Depending on the agreement arranged with the buyer, you may have agreed to pay a portion or a total of fees associated with closing, including: the closing costs, fees for the escrow company, the mortgage and home appraisal, homeowners’ and title insurance, or recording and transfer of the property.
- Taxes: Taxes you may be required to pay include a transfer tax and possibly a capital gains tax, if you earn more than $250K when selling your home.
- Moving Costs: An often overlooked, but necessary expense is the cost of physically moving out. Even if you get some help from your friends, you may still need to rent a truck or trailer, and buy pizza for all your friends. It can also cost you a great deal of time, which may mean you need to take time off from work, costing you money.
The true costs of selling a home can be a little intimidating at first, but with the right knowledge going into the sale, you will be well equipped to handle the costs.
Ready to skip the traditional costs of selling a home? Give us a call at 469-701-1666 or fill out an online form to get started!