Selling a house is a significant financial decision. There are several costs and expenses associated with the process that can quickly add up if you don’t budget beforehand. But how much does it cost to sell a house exactly?
In this post, our team at Your Home Sold Guaranteed Realty Elite - The Augustine Team will break down some nine of the costs you might encounter while selling your home.
1. Realtor Commissions
As the home seller, you’ll be responsible for paying real estate commissions for both your own realtor as well as the buyer’s realtor. On average, the realtors’ commission will cost around five to seven percent of the final sale price. This amount is split evenly between the buyer’s agent and the seller’s agent.
While real estate commissions are technically negotiable, it’s important to look at the overall value the agent brings to the transaction– don’t just choose a realtor who’s willing to work for the lowest price.
2. Preparing Your Home For Sale
The expenses associated with preparing your home for sale can get costly if you don’t prepare for them beforehand. While you’ll be able to charge a higher asking price for certain renovations and improvements, it’s still important to include repairs and upgrades in your budget before you start your home-selling journey.
Costs can vary widely depending on the condition of your home and your local market’s expectations. Common expenses may include painting, pre-inspection, necessary repairs, new appliances, home staging, professional landscaping, maximizing curb appeal, and professional photography.
4. Closing Costs
As the home seller, you’re responsible for paying the bulk of closing costs. On average, you can expect to pay six to ten percent of the final sale price in closing costs. For this reason, it’s important to factor this amount into your asking price when you list your home.
The exact closing costs you’ll pay may vary, as it’s possible to negotiate with the buyer about who pays what. But typical closing costs for home sellers include realtor commissions, title fees, escrow fees, and property transfer taxes.
6. Marketing and Advertising
To attract potential buyers, you’ll need to invest in marketing and advertising your property. This can include creating professional listing materials, online listings, signage, and potentially hosting open houses. How much it costs to sell a house can vary depending on the marketing strategy you choose.
7. Holding Costs
Holding costs refer to the expenses associated with maintaining your home while it’s on the market. These expenses can include mortgage payments, property taxes, homeowner’s insurance, and utilities. You’ll be responsible for these costs until a home buyer comes along. The longer your home sits on the market, the higher these costs will be.
8. Negotiated Buyer Concessions
During negotiations, you may agree to cover some of the buyer’s closing costs or offer other incentives, such as a home warranty. While these concessions can make your home more attractive to buyers, they are additional costs to consider. Discuss your options with your realtor to determine which concessions, if any, you’re willing to provide.
9. Capital Gains Tax
Depending on your home’s sale price and your tax situation, you may be subject to capital gains tax. However, many homeowners are eligible for exemptions or exclusions from this tax, particularly if the property has been their primary residence for a certain number of years. It’s always wise to check with your tax advisor or accountant.
10. Moving Expenses
Finally, don’t forget to budget for the costs of moving to your new residence after you sell. These expenses can include hiring professional movers, renting a truck, or purchasing packing supplies.
We Can Help You Get Top Dollar For Your Home
Working closely with an experienced realtor can help you budget for all the costs associated with home selling. By understanding and accounting for these expenses, you can better prepare for how much it costs to sell a house.
If you need help budgeting for your home sale, reach out to Steve Augustine and our team at Your Home Sold Guaranteed Realty Elite - The Augustine Team.
We’ve helped hundreds of home sellers sell their homes fast and for top dollar, and we can do the same for you. In fact, we sell homes three times faster and for 4.4% more money compared to other realtors in Burlington, Hamilton, and Grimsby.
To learn more about working with our real estate team, reach out to us at (289) 235-8000 or complete the form on this page.