With multiple parties involved and several boxes to check, selling a home can become a daunting and intimidating task. If you’re planning to sell your home, you must be eager to know how much the whole process is going to cost you. Once you get a clear idea of the costs of selling a house, you can make a full-proof plan of purchasing your next house.
No matter you’re selling inherited house in Orlando or a house that you think is no longer spacious enough for your growing family, there are several costs involved. Read on to know about them.
1. REAL ESTATE COMMISSION
Probably the biggest fee that a seller has to bear is the real estate commission. This is 5-6% of the sales price. Suppose you are selling your house for $250,000, you will end up paying $15,000 in the form of commission. The proceeds of the commission are divided among the buyer’s agent and the real estate agent. As per the National Association of Realtors, in 78% of cases, the seller has to bear this cost.
2. HOME RENOVATION
When you’re planning to sell your home, there are numerous things that you can do to spruce up the look and appeal of the house in order to increase its value. Were you delaying the idea of enhancing the exterior portion of the property or repairing the leaky faucet? If yes, this is probably the right time to bring forth such changes. Decluttering, painting and few major upgrades are the few cosmetic works that need to be done to get your home ready for a sale.
3. HOME DECORATION
Buyers usually love to visualize the house that they are planning to move into. Therefore, for a seller, it is always a wise decision to opt for cosmetic repairs like neutral paint or new flooring. You can also enhance the appeal by adding fresh flowers and plants to lure the buyers without having to invest too big an amount. While there are DIY staging tactics that you can opt for, you can also hire a professional to make your home staging pay off.
4. HOME INSPECTION BEFORE SALE
Though this cost is totally optional, yet, if done, it would cost you nearly $400. There are few sellers who make this investment as they are eager to identify any mechanical or structural issues with the house before the buyer enters with his inspector. When you get a clear idea of the condition of the house through an inspection, you can make major repairs in time and avoid the instance of a buyer urging you to lower the price.
5. CLOSING COSTS & ADDITIONAL FEES
During a real estate transaction, while majority of the closing costs are the responsibility of the buyer, there are costs for sellers as well. Few of these costs comprise of property taxes, homeowners association fees, transfer taxes, attorney fees and title insurance. You may also be asked to pay a brokerage fee, escrow fee and a courier fee.
So, now that you get a clear image of the costs associated with selling a house, you can plan your homebuying process with more confidence.