In 2021, home sellers received about $85,000 more than what they paid for the home. That’s a huge incentive to put your home on the market now.
Before you do, you need to take into account the cost to sell a house.
Most sellers make the mistake of thinking only of how much they owe on the mortgage. They start spending the amount of money left in their heads.
They get the check after the deal closes and realize that they can’t take that vacation after all. There were a lot of unexpected costs to sell the house.
There are a lot of steps in the home selling process. Not knowing what they are could cost you the money you didn’t plan to spend.
Do you want to learn what the standard home selling fees are? Read on to find out and get the latest home selling tips.
1. Real Estate Agent
The real estate agent is cited as the biggest expense for home sellers. That’s because agents’ fees are 6% of the sales price of the home.
That seems like a lot. The fact is that the agent you work with only takes home a small percentage of that. They split the 6% with the buyer’s agent.
They then split their portion with their real estate broker. In the end, they end up with about 1.5%.
2. Home Inspection
You don’t need to do a home inspection before you list the house. It is recommended if you want to sell your home fast.
That’s because things get discovered during the home inspection that could hold up the sale or cause it to fall apart.
Doing a home inspection ahead of time is a proactive approach. It will also set you back about $500.
The cost of repairs depends on the condition of your home. You could have a few DIY projects that get done for less than $50.
You might have something more intensive that costs more than $1000.
Keep this in mind as you consider putting your home on the market.
4. Curb Appeal
You want to make sure your home looks great when you put it on the market. Curb appeal can add a few thousand dollars to the purchase price of the home.
The amount of money spent on curb appeal depends on the current state of the property. You may need to invest a lot in landscaping.
Staging costs ensure your home looks amazing online and in person. The costs to stage the home depend on a few factors.
If you get a professional staging company and photographer, you’ll end up spending quite a bit of money. You should be able to get a return on investment because your home is so attractive to buyers.
6. Seller Closing Costs
Buyers are mostly responsible for paying closing costs on a home. Sellers may have some costs, but these are negotiated in advance.
For instance, sellers may pay remaining property taxes, escrow fees, and title fees. This varies from one real estate deal to the next.
7. Mortgage Prepayment Penalties
You just sold your home and paid off your old mortgage. It feels like a weight’s lifted off of your shoulders.
That is until you look and learn that you got charged mortgage prepayment penalties.
Some mortgage contracts charge you if you pay the loan off early. That’s because banks depend on the interest tied to those loans to make money.
If you pay off the mortgage sooner then you’ll get assessed a penalty of as much as 2% of the loan.
8. Cost of a New Home
Where will you live after you sell your home? Perhaps you think it’s time to downsize or relocate to a new area.
There are few places to go where the real estate market isn’t crazy high right now. It makes selling a property risky because you could end up spending even more money on your new home.
With the market where it is right now, you do run the risk of buying a property to see the value drop. You could end up underwater on the deal.
Tips to Lower the Cost to Sell a House
Even if you sell your home at $60,000 above the asking price, you’re still going to lose a lot of it because of the cost to sell the property.
There are a few ways to get creative and lower the cost to sell a house. For starters, you can sell the house yourself without a real estate agent.
The trouble with that is you’re responsible for setting the price, advertising, negotiating contracts, and scheduling showings.
Skip the house inspection before you list the home. It isn’t completely necessary, but you can take preventative measures based on the findings.
Sell the house as-is for cash. There are real estate companies that say “we buy houses for cash” or “we buy houses fast.”
Look for these companies because they will make an offer on your home. If you accept it, you can close the deal and close in several days.
That saves on a lot of these costs. You save a lot of time as well.
Understanding Home Selling Fees
The housing market is hot and you can sell your home at a sizable profit right now. The thing to take into account is the cost to sell a house.
It turns out that it’s not cheap to sell a house. You have to pay for inspectors, agents, stagers, repairs, and more. That cuts into your profits.
There are a few ways to cut down on those costs. You can sell your home quickly and get the profit you deserve.
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