So, You’re Selling Your Home?
A home is one of the most significant investments one could make in a lifetime. As a homeowner, you would want to get as much money as possible when the time comes to sell it. Hiring a real estate agent could cost you five to six percent of the total selling price. For example, you might need to pay your real estate agent $30,000 on a sale of a $600,000 house. Here are eight costs that come along with selling a home:
1) Independent Appraisal
Your house might sell quickly if you sell your home at a low price. However, you might lose the opportunity to get what it is worth. If the price is too high, it might be challenging to sell. It is best to get a professional appraiser who can assess your home from top to bottom, comparing it to the recent sales in the area. Make sure that your residential appraisers are licensed. The American Society of Appraisers can help you find a professional appraiser. You might need to spend $350 to $500 for an independent appraisal.
2) Professional Staging
Staging a house for sale involves supplying attractive furniture, painting, and making it look appealing but generic so they can imagine how they can modify it to fit into their liking. You can hire professional home stagers to fix your home. It might cost you between $250 and $600 per room, but you will have an 88% edge compared to the non-staged houses.
3) Pre-inspection
Selling your home could become stressful if you discover an active pest infestation or other serious issues after you have entered negotiations. Costs depend greatly on the size of your home, but averages run between $400 to $600 to hire a professional home inspector. You can find certified home inspectors in your area through The American Society of Home Inspectors (ASHI).
4) Vacant House Fees
You will have various vacant house fees if you decide to move out before your house sells. These will include monthly fees to maintain the property. You could purchase a “vacant house insurance policy” to protect your home from damages. This could cost you hundreds of dollars each month.
5) Repairs
The bank needs to see your house as a sound investment. That is why lenders require thorough inspections. Real estate sales usually address this issue by negotiating to split the cost of repairs. If the prize is too high, you still have the option of backing out.
6) Survey Costs
It is not always simple to tell where property lines go if they aren’t well documented. Cuts in the curb or pins below the soil level usually identify property lines for residential developments less than 30 to 40 years old.
It’s different for older neighborhoods and rural settings. Expect to pay anywhere from $250 to $1,000.
7) Seller Concessions
There is a lot of negation being done on real estate deals. A buyer might ask you to pay a share of their portion for the closing payment. You can leave some appliances as part of the deal. It would still be up to you whether you agree or not.
8) Attorney Fees
You won’t need legal representation if you get a real estate agent to handle the sale; their transactions are highly regulated at the state and federal levels. It’s still a good idea to consult with an attorney if you plan to do for-sale-by-owner (FSBO). You can search, or better yet, ask your real estate agent for a referral. Hiring a real estate attorney might cost you $200 to $400 per hour, depending on how much time they spent.
Conclusion
When you are selling your home, all these costs should be taken into account since they could end up having a significant impact on your bottom line. Ensuring that you know as much as possible before going into a sale can help you to price your home appropriately.
