No one ever said that selling a home was cheap or easy. But how much exactly do you have to budget for? It's hard to know where to start between agent commissions, closing costs, taxes, and other expenses.
In this post, we'll break down costs associated with a home sale so you can plan ahead and enjoy maximum returns on your investment.
1) Preparing Your Home to Sell
Before selling your home, you'll want to ensure the place is market-ready and attractive for potential buyers. Home preparation usually entails four main costs.
- Landscaping
- Home Repairs and Maintenance
- Home Improvement
- Home Staging
User spending varies on each cost, depending on the house's condition. Spending on these costs gives you an added leeway when negotiating the selling price with a potential bidder. It also gives you an added advantage as your place looks the part after the renovation.
2) Real-Estate Agent Commission
If you're like most sellers, you'll hire a real estate agent to help with the home sale process. Most agents charge around six percent commission on the final sales price of the house. So if your home sells for $200,000, your agent will earn $12,000 in commission.
Keep in mind that this number can go up or down depending on market conditions and how much work your agent does to sell your home. You may also choose to pay your agent a flat fee instead of a commission percentage.
Either way, it's important to remember that when hiring an agent, their fees are always negotiable. Do some research online and compare fees between different agents before settling on one.
3) Closing Costs
Closing costs are fees that buyers and sellers pay after closing a real estate transaction.
For sellers, typical closing costs include the real estate commission, title insurance, and escrow fees. Sellers typically pay between $2000-$5000 in closing costs, but this number can vary depending on the price of your home and other factors.
As a buyer, you can expect to pay anywhere from $500-$3000 in closing costs. These fees go towards loan origination, appraisal fees, and title insurance. The best way to estimate your buyer's closing costs is to ask your real estate agent for a Good Faith Estimate (GFE). A GFE estimates all the fees and expenses that both parties will incur during the transaction.
4) Moving Costs
Unless you're moving down the street, chances are you'll have to pay to move your belongings. The cost of hiring a professional mover will vary depending on the size and distance of your move but expect to pay at least $500. If you choose to do it yourself, you could save some money, but it will still take time and effort.
A snapshot of the potential home selling costs can help you plan and prepare for what will come your way when you’ll list your home in the market. Bonnie L Miller PA, CNE-Exp Realty LLC, offers comprehensive real-estate assistance making it easier for folks in Punta Gorda to buy and sell their property.
Call us today for all your real-estate queries and needs, our team will be happy to help!