Education

Costs to Expect When Selling Your Home

You’re probably asking “what are the costs to expect when selling your home”. If you are thinking about listing your house, make sure you are prepared for these hidden and often unexpected costs! Keep reading to learn what to watch out for and ways to save your hard-earned money!

Selling a house can get expensive quickly when you hire a local agent and list the house on the MLS. A smart seller will consider these costs before spending a dime to really evaluate if the expenses are worth it. In some cases, selling a house to a direct buyer can be the better choice. Give us a call today to find out if listing or a direct sale will be the best choice for your situation.

Here are 7 expected costs when selling your home.

Closing Costs

When buyers get a loan, they have to pay what are called closing costs. Closing costs will include things like origination charges, transfer costs, inspection fees and more. Most homeowners will pay anywhere from 2-5% of their final sale price in closing costs. If your house is $200,000, estimated closing costs can be anywhere from $5,000 to 8,000. People know closing costs are out there, but they aren’t always sure what to expect. In fact, the numbers vary from house to house.

Agent Fees

Agent commissions will typically cost around 6% of the final sale price of the house. However, many agents will have administrative expenses that they will tack on top of that. If you decide to list, be sure to review the agreement before signing to make sure that there are not other fees included.

Staging & Curb Appeal

Getting a house ready for photos, showings and open houses can get expensive quickly. All of your personal belongings should be put away in order to achieve the greatest effect. In this case, it doesn’t mean stashing everything in the closet… people are going to look there.

Some homeowners will find themselves paying for a storage space while their house is listed, keeping only their necessities at the house with them. This makes for easy clean-up and an easier move when the time comes.

Make sure the yard is in tip-top shape and looks amazing to anyone passing by. It can take some work and some out of pocket cash to get things where they need to be. Not to mention the continuous upkeep while the house is listed. Curb appeal is a huge influencer for people getting ready to buy. Don’t miss out on a potential buyer because the yard looks messy.

Painting

Painting is one of the first things many homeowners will do before selling their house. It is a relatively simple upgrade, that can have a big impact on the appearance of the house. Most people will opt to hire a professional to handle it as painting the whole house can be quite an undertaking.

Others will choose only to do certain rooms to be mindful of costs. Repainting your entire house can ultimately set you back thousands. Painting a home can be very expensive, a rule of thumb is $300-$500 per room.

A complete interior can be as much as $6,000-$8,000 depending on the house size. Exterior paint jobs vary based on the size of the home. A 1200 square foot home may be around $2,500 while a 3,500 square foot home can be $6,000-$7,000. A rough number to use is anywhere between $1.75 and $2.00 per square foot.

Cleaning

Sure, you can do a pretty good job cleaning your house. But do you really want to scrub the walls, baseboards, and the dreaded oven? Many people hire professional cleaners, who will specialize in “move-out” cleanings. They will take care of everything from top to bottom so you can spend your time elsewhere. If you are not replacing the carpets, it is a good idea to pay to have them professionally cleaned.

Mortgage Fees

Some lenders will charge you if you are paying the mortgage off early. Check with your lender for pre-payment penalties and other costs you will incur when paying off the mortgage. You will likely have to pay recording fees, which will usually run around $75.

Title & Escrow Fees

When selling a house, you will also need to consider the cost of title insurance as well as a fee to the person holding escrow. This is typically a fee paid to the attorney who distributes funds to each party at closing.

Now, you know the Costs to Expect When Selling Your Home. What’s your next move?