Overlooked Costs of Selling a Home: How to Plan for Them in Advance
Aug 16, 2022

When you’re selling your home, it’s essential to be aware of all the costs. Many people are surprised by their expenses when they sell their houses. This article will discuss some of the most commonly overlooked costs of selling a home. By planning for these expenses in advance, you can avoid surprises and ensure a smooth real estate transaction.

Costs Before the Home Sale

These are the typical initial expenses in selling a real estate property. Some are a matter of choice, but they could be essential investments to ensure that your home is sold with the best possible offer or that it is sold.

– Real estate agents: real estate agents typically charge a commission of around six percent, which the seller pays at closing. This fee is negotiable, so shop around and compare agent commissions before selecting one.

– Home repairs: before listing your home for sale, it’s a good idea to make any necessary

– Home staging: Home staging is the process of preparing your home for sale. This can involve anything from decluttering and deep cleaning to minor repairs or renovations. The cost of home staging varies depending on the extent of work required. Still, it can range from a few hundred dollars to several thousand.

– Marketing: Marketing your home is essential to generate interest from potential buyers. This can include online listings, open houses, real estate signage, etc. The marketing cost will vary depending on the methods you choose. Still, it’s important to factor this into your budget when selling your home.

Costs During the Home Sale

These are the typical ongoing or variable expenses that you will incur during the sale of your home. The seller generally pays them at closing but can sometimes be negotiated with the buyer.

– Legal fees: legal fees can vary depending on the complexity of your real estate transaction. Typically, a lawyer will charge an hourly rate for their services.

– Mortgage payouts: if you have a mortgage on your home, you will need to pay it off when you sell. The payout amount will depend on the terms of your mortgage and how much equity you have in your home.

– Property taxes: property taxes are typically paid by the seller at closing. The amount will vary depending on your municipality and the assessment value of your home.

– Utilities: if you are still living in your home while it is being sold, you will be responsible for paying the utilities. This includes electricity, gas, water, sewage, and trash removal.

– Home insurance: most homeowner’s insurance policies require that the home be insured until the closing date. You will need to continue paying your premiums until the sale is finalized.

Costs After the Home Sale

These are the typical expenses you will incur after your home has been sold. The seller generally pays them at closing but can sometimes be negotiated with the buyer.

– Moving costs: once your home is sold, you will need to move out. This includes the cost of hiring a moving company, renting a truck, or paying for storage.

– Cleaning: most sellers must leave home in broom-clean condition when they move out. You will need to deep clean the entire home before turning over the keys to the new owner.

– Closing costs: closing costs are typically paid by the seller at closing. They can include real estate commissions, legal fees, and title insurance. The total cost will vary depending on your real estate transaction.

When selling your home, it’s essential to be aware of all the potential costs. By planning for them in advance, you can avoid surprises and make the process smoother for everyone involved. If you have any questions about the costs of selling a home or need help navigating the process, please don’t hesitate to call us. We’re here to help!

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