You’re selling your house and you’re ready to make some money! But, before that, you should know about some of the costs, yes costs, that are going to come with selling your home to that perfect buyer.
Real Estate Agent Commissions
If you use a real estate agent, which many home sellers do, be ready to spend about 6% of the final sales price to them. Of course, their help can be invaluable when connecting a buyer to a seller and you may be able to negotiate their fee in some situations.
Closing costs can range between 1% and 2%, which are much lower than the 2% to 5% that home buyers typically spend when closing. A seller can also pay for the home buyer’s closing costs if the situation calls for it. This usually won’t be the case if it’s a seller’s market at the time of closing, however.
Staging / Painting / Carpet Cleaning
In order to make a house more appealing, a seller may want to invest in home staging, interior painting, and carpet cleaning (among other housekeeping items such as lawn care, etc.). All of these expenses can quickly add up and cost from a few hundred dollars to a few thousand.
The transfer tax depends on where you live and is typically a portion of the sale price, meaning a more expensive home will have a higher transfer tax. The United States average transfer tax is about $750.
Title Insurance for the Buyer
Sellers are responsible for buyer title insurance protecting them if there are any issues with the home such as liens. This expense is typically around $1,000.
The lights need to be on and the water needs to be running even if you’re not living in the home while trying to sell it.
Home Repairs and Inspection Repairs
You’ll also want to be prepared to possibly have to pay for a few surprise expenses that may arise when the home inspections come through.
As you can see, there are many costs that can quickly add up when you decide to sell you home. These costs are something that every home seller will want to take into account before they embark on their journey!