As a homeowner, you'll ideally make money if you choose to sell your home. However, there are some home selling costs associated with real estate that you should know about before getting started.
Preparing Your Home for Sale
To attract buyers, you'll likely need to do some work before placing your listing on the market. Homeowners selling their properties can invest in things such as interior and exterior painting as needed, landscaping and curb appeal projects (painting the front door, for example), professional cleaning and staging, and storage unit to reduce clutter by packing away excess furniture and belongings.
In addition to taking care of obvious repairs, homeowners should consider paying for a pre-listing inspection to identify other issues that may prevent the home from selling.
Enlisting a Realtor
To take advantage of the expertise of a REALTOR in staging, listing, advertising, showing your home, and negotiating you the best deal possible, you'll need to be prepared to pay a commission of about six percent of the home's total sale price. For example, if your home sells for $200,000, you'll owe the realtor $12,000 as a commission. However, some sellers try to avoid this cost for opting to list the home themselves. Another REALTOR - associated cost is staging the home for sale, which averages around $700.
Whether you want to boost the value of your home or make it more attractive to buyers, even fixing small items like a leaky faucet can have a big impact on how well your property shows. Projects that have the biggest impact include refinishing hardwood floors, replacing cracked tile(s), and cleaning or replacing stained carpeting.
Investing in Updates
Certain updates make a big difference to buyers and offer a good return on investment when you sell. These include remodeling outdated bathrooms, replacing old roofs (especially if they have issues), and updating aging HVAC, plumbing, and electrical systems. On the other hand, appliance replacement and new windows are best left to the buyers.
Covering Closing Costs and Other Fees
While this is optional, agreeing to pay a portion of the buyer's closing costs can help sweeten the deal if you're hoping to sell your home quickly. These typically range from 2 to 4 percent of the home selling price (so $4,000 to $8,000 on the $200,000 home from the earlier example).
Seeking guidance from those experienced with real estate, such as a realtor, can help you determine which home selling costs you should expect to pay. Industry experts are an investment that saves you money when home selling. We at the Shane T. White team are here for you when you need real estate help and advice. Call us today!
Posted by Shane White on