If you’re preparing to sell your home, you may be wondering if it will cost you anything. After all, you’re the seller in this scenario so, shouldn’t you be the one making money on the transaction?
Unfortunately, there are some costs associated with selling a home and you’re in the right place if you don’t know what they are. In this article, we’re discussing the various charges you can expect to dent your pocketbook before the big payday.
The Average Costs Associated With Selling a Home
The costs associated with selling a house ultimately work out to benefit your profit margins so don’t get too overwhelmed with the list to follow. Let’s take a look at what you can expect to pay upfront.
Pre-Sale Home Inspection
While a pre-sale home inspection is not necessary, it can save you headaches down the line throughout the sale process. It will cost about $400 and the home inspector can outline anything that your home needs repaired before you attempt to sell.
When you want to sell a house, you must fix things the buyer is not interested in fixing themselves, such as an old roof or an outdated HVAC system. These costs vary depending on the repairs required.
You can save about $400 by staging your home yourself, however, a professional stager can decorate your home according to the tastes of the buyers viewing your home.
Closing Costs and Fees
Closing costs typically fall on the buyer, however, some negotiations can lead to buyers requesting sellers to pay closing costs in order to close the deal. These fees include attorney fees, title insurance, transfer taxes, and property taxes. In some cases, you may be requested to pay homeowners association fees as well.
Realtors and real estate agents earn anywhere from 3% to 6% of the sale of your home. These fees can be worked into the contract so that you don’t actually pay out of pocket and the amount will simply be reduced from your net profit, however, it’s important to know these costs upfront.
While property taxes are usually paid in advance and therefore you have likely already paid for the year, you could end up with a rebate. However, if you’re selling at the start or end of the year, you may be required to pay these fees before you can sell.
How Much Does It Cost to Sell a House by Owner?
You can save a boatload if you engage with one of the ever-popular ‘we buy houses for cash‘ corporations. Otherwise, your general costs will be the same as selling your home with an agent, sans the agent’s fees.
How Much Does It Cost to Sell a House?
The costs associated with selling a home do add up so you must be prepared before you put your house on the market. Typically, these costs add up to at least a few thousand dollars.
If you found insight in this post, we invite you to check out our ‘Houses’ column for more great tips about being a homeowner/seller.