14 Costs Involved When Selling Your Home
Photo by Tierra Mallorca
Originally Posted On: https://www.outfactors.com/14-costs-involved-when-selling-your-home
When people decide to move, one of the top searches they make is, “sell my house fast.” While a quick sale is preferred, make sure you are prepared for all the associated costs. Below are 14 costs typically related to home sales you should know.
- Agent Commission
Besides cash home buyers who might be able to forego traditional sales methods, most property owners will need to deal with agent commissions. Real estate brokerage firms and agents earn a small percentage from home sales for making the sale. Their commission is based on the sale price for the house.
- Closing Costs
Another factor associated with a traditional home sale is the closing costs. The closing costs are typically between one and two percent, but they can be as high as five percent. We buy houses straight from the owner, which simplifies the sales process and eliminates many of the usual incurred expenses.
One cost that can be avoided when you want to sell your home fast is staging. While not a mandatory expense, staging a home often helps to sell a house because future homeowners can see how different spaces in the home could be used.
- Transfer Tax
Transfer tax is a fee for transferring property into the new owner’s name. While not every state, county, or city will charge this fee, it is usually a percentage of the sale price.
When preparing a house for showings, it is often necessary to strip away any personal touches. The first thing that will typically need to go is any vibrant or odd color choice on the walls. When selling a home, try to stick with neutral colors.
- Carpet Cleaning
When going the conventional route, you will want to hire a carpet cleaning service. However, if you choose to sell your house fast for cash, then you should save time and money by avoiding this added expense.
If your house doesn’t sell immediately and you are forced to move before a sale, then you might need to hire a landscaping company. The expense of hiring a service will only continue to grow until a buyer comes along.
- House Cleaning
One service that may be necessary on an ongoing basis is house cleaning. Sure, you use it once to prepare the house for showings, but what about after showings? Also, don’t forget that you may need to live in the property during the showing process.
- Lawyer Fees
Unlike with the “sell my house fast” options, a traditional home sale may require attorney fees. While not always mandatory, these fees can reach $1,000.
Going the conventional sale route takes time. Depending on the area and the price of your home, a sale may even take months. During this time, you will need to continue paying for utilities, even if you don’t live in the house.
- Title Insurance
Are there any liens or other property issues with your home? To ensure a buyer is getting a home free of all liens the Seller typically pays for title insurance which costs between $1,000 and $2,000 (approximately 1% of the sales price).
- Mortgage Payoff
It’s easy to think of the sale price of your home as money in your pocket, but the funds received from the sale of the house will first be used to pay off anything outstanding on the mortgage. After the mortgage is paid, along with any fees, the remainder is for you to keep.
- Home Repairs
A downside to conventional home sales is that you will typically need to invest in a property you no longer want. For example, buyers may be reluctant to buy a property with water damage, so you might need to make repairs before putting your property on the market.
- Inspection Repairs
Aside from making obvious repairs, you may be required to cover hidden repairs found on inspection. These hidden expenses can be substantial and greatly reduce the amount of money you will receive at closing.
OutFactors specializes in the “sell my house fast” approach, allowing you to avoid many of the costs listed above. We love buying properties as-is, and we don’t expect you to change anything about your house to make the sale. If you’re interested in making a quick sale, then contact us for a same-day offer.