Do You Know What Costs We Cover When We Sell Your House?

 Do You Know What Costs We Cover When We Sell Your House?

 

The traditional method of selling a house involves several steps, and some of these steps involve fees. What are these fees for? And how much are they? Here is an overview of how much it usually costs to sell your house.

 

 

Home Preparation and Repairs

 

How much does it cost? Each house is different, so this depends on the condition of your property. If your house only needs minor work, then this amount may be manageable. However, if your house needs major work to increase its value, be financially prepared to undertake this project. This usually includes several home maintenance or home improvement projects, such as professional cleaning, landscaping, upgrades, replacements, remodelling, and more.

 

Who bears this cost? Basic house repairs should ideally be done before putting your house on the market, so it is your (the seller’s) responsibility to shell out for this project.

 

Can you avoid this cost? If you plan to sell your property in a couple of years, be a good homeowner. Maintain your property and make the necessary repairs before they become even more complex and expensive. Remember that if there are any problems that are only revealed after the buyer’s home inspector conducts a property inspection, you might still have to pay to fix those issues to close the deal.

 

Home Inspections (pre-sale)

 

How much does it cost? It could cost around $500 or even more. Who bears this cost? This is a pre-sale step, so it’s the seller’s responsibility to hire a home inspector and pay for the fees.

Can you avoid this cost? In a way, yes, because this step is optional. However, a professional inspection is highly recommended because it helps you to find out what defects need to be repaired, and you can do the repairs ahead of time for a hassle-free sale. Remember that if the inspection does reveal problems with the house, you need to inform the buyer, depending on your state’s laws.

 

Home Staging and Professional Marketing Photos

How much does it cost? This could cost you up to thousands, especially if you plan to hire a professional stager and photographer.

What is it and why do I need it? The purpose of staging is to add elements to the property strategically to make it easy for prospective buyers to see themselves living in it. This typically involves cosmetic repairs, a new coat of paint, adding fresh flowers or live plants, adding accessories, or even adding and arranging furniture. Additionally, clear and high-quality photographs of your home are necessary if you want your listing to stand out from the rest. Home staging and good photographs of the property are essential if you want to market your house Can I avoid this cost? Yes, as you have the option to stage your home and take photos of it yourself.

 

Utility Bills

 

How much does it cost? This can be determined by checking your current bills. Your present utility bills will give you an idea of how much it will cost each month to leave the utilities on until the new owner moves in.

Can you avoid this cost? It is recommended that you leave the water and electricity available if you plan to move out before selling your property. When showing your home, you will need water, air conditioning or heating, lighting, etc.

 

Realtor’s Commission Fees

 

How much does it cost? This is usually the biggest fee the seller has to pay. The real estate commission is approximately 5% to 6% of the total sale price. If you sell your house for $1,000,000, then the commission could be as high as $60,000.

Who gets the commission? This fee is split between your (seller) real estate agent and the agent of the other party (buyer).

Who bears this cost? It is usually the seller who bears this cost.

Can you avoid this cost? Now, there are ways to avoid these fees. First, you may try to negotiate a lower commission. However, this is not guaranteed and does not happen all the time. Second, you may list your home as a for-sale-by-owner (FSBO). If you choose to go this route, however, you have to assume the responsibilities of a real estate agent. That means doing the basic duties of an agent, including showing, negotiating, hiring a lawyer for the contract, and handling the transfer of title yourself.

 

Outstanding Mortgage Balance

 

How much does it cost? Refer to your loan documents or talk to your current lender to determine the amount and to know if there is a prepayment penalty. Who bears this cost? The seller will shoulder this cost. Usually, the proceeds of the sale will be used to cover your mortgage.

Closing costs and other fees

 

How much does it cost? Closing costs are an assortment of fees and can range from 2% to 4% of the property’s sale price. These costs may include other fees such as attorney fees, escrow fees, brokerage fees, courier fees, transfer and property taxes, title insurance, and homeowner association fees.

 Who bears this cost? Closing costs are generally the responsibility of the buyer. However, there are instances where you (the seller) may be asked to share the expenses. When this happens, your costs will be much lower than the buyer's.

Can you avoid these fees? Some of these fees are negotiable. However, it is recommended that you prepare for them anyway when considering selling your home.

 

Capital gains taxation

How much does it cost? It depends on the selling price. When your home is sold for more than you originally paid, this is considered a capital gain and may need to be reported on your federal tax return.

Who bears this cost? You (the seller) will bear this cost.

Can you avoid this cost? If you have lived in the property for at least two of the last five years, you will receive tax relief on profits. Many homeowners are eligible to exclude up to $250,000 of profits from their principal residence from this tax. For married people filing jointly, the amount can be up to $500,000. However, it is important to note that this is only valid if they have not used the tax relief on another home sale within the past two years.

 

property tax

How much does it cost? The amount varies greatly by location. Who bears this cost? The seller must pay a pro rata amount of the property tax until the closing date. However, if you have already paid taxes for the year, you may be able to get a refund at closing. The buyer will have to refund you the amount you paid. Can you avoid this cost? You can check with your local tax agency to see if tax relief is available. Phew! Who knew selling your house could be so expensive? Whether it's fixing your home, making it saleable, or closing the deal, selling a home the traditional way involves several costs.

 

The good news is that you can skip many of these steps when deciding to sell your home for cash. When you sell your home for cash, the process is not only quick; you will also receive all the proceeds of the sale since there is no commission to pay! Plus, you don't even have to worry about repairs and staging! Are you ready to sell your home for cash quickly? Contact [company].com.