The True Cost of Selling a Home

by Tracey LaFleur 01/05/2020

Image by Steve Buissinne from Pixabay

All home sellers understand that there are some costs to selling a home, but not everyone realizes what they're expected to pay for (and how much the total will be). We'll look at the most common expenses and how they might affect your budget. 

Real Estate Agent Fees 

This is probably the first thing that comes to mind if you're selling a home. The standard rule is anywhere between 5 to 6% of the final sale price. Not all sellers will shoulder this cost, but the majority will. So if your home sells for $300,000, you should expect to hand over at least $15,000 to be split between the buyer and seller real estate agents. Please note that commissions can be negotiable, especially if you're selling in a popular neighborhood. 

Prep Work 

While none of these costs are strictly necessary, they can help you get your home ready:

  • Repairs: If you're not planning to sell the house as-is, it's a good idea to spruce up the interior and exterior of the property. Even if you're only buying a few cans of paint and a roller, the costs can add up quickly. 
  • Home inspection: Buyers will typically do their own home inspection, but sellers who go above and beyond can give themselves an edge in a competitive market. If you're going out of your way to buy a home inspection, it can show you have nothing to hide. These inspections cost a few hundred dollars and may reveal structural problems that you were unaware of. 
  • Staging: Arranging your furniture to show off the best of the home can really inspire buyers to view its potential. Whether you dress up your home with cozy touches (e.g., cashmere throws, small bouquets, etc.) or more modern decorations, it can help attract the perfect buyer. 

Additional Fees 

If you're moving out before you sell the house, you'll need to continue paying the utilities. You'll also need to check with your lender as to exactly how much you owe when you pay off the loan. Some lenders will charge prepayment fees upon early termination. You may also be asked to either pay or split the closing costs, especially if you're selling in a buyer's market. This can include anything from the title inspector fees to transfer costs. Finally, you may need to pay capital gains tax if your home skyrocketed in value or any lingering property taxes.

Some sellers end up paying closer to 10% of the total sale price of their home, a figure that can be difficult to swallow for many sellers. It's worth clarifying each cost so you always know what you're paying for.

About the Author
Author

Tracey LaFleur

Whether you are a first time homebuyer, moving up to your next home, or an experienced investor, I have the expertise and resources to help you buy or sell your next home!

 

With over 14 years of experience as a Realtor, I am a Licensed Associate Broker, and a Certified Buyer Representative. I have the Graduate Real Estate Institute Certification, e-PRO Certification, and Instructor Training Institute Certification. What that means to you is that I have the know-how and skills needed to assist you! I specialize in residential properties, but I have the knowledge and experience to assist you with all your real estate needs. 

 

From our initial consultation, through the contract negotiations, and on to the closing, I will guide you every step of the way - making the entire process as smooth, enjoyable, and stress free as possible.

 

Enthusiasm, knowledge, and personal concern for my clients interest are what make me an outstanding resource for you in your real estate transaction. I will provide honesty, integrity, and professionalism to the process. I work diligently to help my buyers and sellers meet their real estate goals.

 

My affiliation with Howard Hanna, the 3rd largest real estate company in the United States, will provide all of the additional resources and support needed for a successful transaction.

 

When you are ready to discuss your real estate needs and goals, I am here to help. Customer service of my client is my number one priority! ...I am ready to assist!

 

Enjoy Life!