Selling Your House Will Cost You More Than You Think
When you think of selling your house, you are most likely thinking about how much you can make from the sale, not how much you will spend to get it sold, right? If so, you are like the majority of sellers.
However, there are many costs involved with selling your house and you don’t need to be caught off guard by them. Here are things to keep in mind:
Closing Costs
Buyers pay the majority of the line items when it comes to closing, but as a seller you will pay the larger amount. Commission and sales or transfer taxes are usually the responsibility of the seller. Commission alone averages 6% of the sale price of the home.
There can also be other small costs that are involved, such as escrow fees and title insurance. On average, sellers around the country spend $12,532 at closing. Many agents will advise that sellers plan on paying around 8% of the home’s sales price in closing costs, including commission.
Preparing the House to Sell
Most sellers are going to complete a project or two around the house before they sell. It could be as simple as repainting a wall or as complex as re-roofing the house. You can do the work yourself, or outsource the projects to a company or handy man to do the work for you.
There are also expenses such as home staging, carpet cleaning, and lawn care that are popular when getting ready to sell a house. Make sure to have a conversation with your real estate agent before getting to work. They can advise you as to where to spend your money and where not to.
There are some projects that are not worth spending money on when you are getting ready to sell.
Location
Where you live is going to make a difference on how much you pay to cover the expenses of selling your house. Houses have a wide range of prices based on where you live, which will impact how much you pay in closing costs, such as commission.
For example, in San Francisco the costs average around $55,000. However, over in Cleveland, OH the average for the same line items is just over $10,000. Talk to your real estate agent with any questions on what the estimates would be for your property.
Calculating the Profits
What every seller wants to know is the bottom line. Overall, 73% of sellers are still happy with the outcome of their sale. Knowing what to expect in advance can play a major role in helping you prepare for closing. You do not want to be caught off guard if you are required to bring money to the closing table when you were expecting to make money off the sale.
Selling your house can be an exciting time. Talk to your agent to have a clear understanding on how much the process will cost you and what projects you should complete before the house goes on the market. The more prepared you are the happier you will be at closing.