You’re ready for the next stage in your life – selling your home and moving on to something exciting and different. It’s a thrilling time for you, but there are a lot of choices you have to make along the way to sell your home so you can enter this new chapter.
Many people choose realtors to help them make these decisions and know what to expect, while others attempt to sell their homes on their own. Whichever way you go, if you are ready to move to a bigger home, it is vital that you are prepared for these 4 hidden costs that always arise whenever you sell a home.
4 Costs to Consider When Selling a Home
- The big one: closing costs. Closing costs usually fall to the seller to cover. These costs include the commissions for all agents involved in the sale and sales taxes. A typical agent commission is 6% of the price of the sale. This amount is shared between the seller’s agent and the buyer’s.
Between the commission and taxes, this cost can get hefty and needs to be considered when you choose a selling price. Those sellers who don’t want to deal with extra costs and fees have the option of choosing a reputable “we buy houses with cash” purchaser.
- Costs incurred while getting your home “sale-ready.” There’s a wide range of things that must be done in order to get your home ready to sell. First, you’ll want to work on the aesthetics to make it look nice. This may include a fresh coat of paint, getting the carpets cleaned, and de-cluttering.
Then you have more substantial costs, such as fixing air conditioning units, roof repairs, and everything that has to be done in order for the buyer’s lender to approve the sale. When done prior to choosing a selling cost, though, these repairs can actually add to the value of your home and are a great return on investment.
- Staging your property. In addition to getting your house in the condition necessary for it to be approved by the lender, you’ll want to make your yard attract the attention of the buyers in the first place. It’s the first impression many people get of your property, so spending a little extra to keep the lawn mowed and the trees and bushes trimmed adds to the curb appeal, which also adds to your property value.
- Leftover bills. You probably already expected to have to pay off your remaining mortgage with your home sale, but don’t forget that you’ll have utility payments for your electricity and water, property taxes through the sale date, and other bills. Even if you move out of your home before selling it, you’ll still need to keep paying for utilities or it will be difficult to sell the house.
Don’t Let the Hidden Costs Surprise You!
Depending on the shape of your house when you choose to sell it, many of these hidden costs can cut into your profit deeply. Look into your options.
Every home may not fit the “sale” path that you expect. You may need a realtor, you may be able to sell your home yourself, or you may benefit from a “buy homes for cash” sale.
With a little research, you can quickly see which one will give you the best deal for your home!