The Hidden Costs of Home Selling That Nobody Ever Tells You
Did you know that there’s more to selling a house than the listed price? You might not know about this, unless you’ve sold a home before, but there are many fees involved to selling a house.
From selling fees, to commissions, renovations, repairs, staging, and more, selling a house can cost you a lot more money than you might expect.
Below are some of the most surprising costs of selling a house that no one really tells you about.
1. Home repairs and maintenance
The best way to sell your house for the highest price possible is to repair both structural and cosmetic problems, as well as to make all the necessary small repairs so that the house looks like it’s brand new.
From replacing the carpets, to power washing the pavements, walls, and windows, to having the house cleaned, as well as replacing cabinets, and more, you can expect to spend hundreds if not thousands of dollars making your house smell and look like brand new before you even think about putting it up for sale.
This is the type of cost that most home sellers don’t really think about when they first consider putting their house up for sale.
Because they most likely will no longer be living there, their lawns and backyard will need some looking after. That’s where landscapers, and the subsequent costs of hiring them, come in.
3. Staging and utility
It’s easier to sell a home when it’s barebones and designed to look completely neutral than when you live there. Unfortunately, staging is another cost you have to worry about, and can set you back upwards of $700 on average.
Also, while you’re house is put up for sale, you’ll have to worry about paying for utilities as well, which can add to your expenses.
4. Fees for home inspections and home appraisal
While home appraisals are usually paid for by the buyers or lenders, you might as well consider adding it to your possible list of expenses just in case.
The sure thing that you’ll have to pay for is the home inspectors. The seller is usually the one to shoulder the costs of paying for a home inspector to check out the property and see if there’s anything wrong with it structurally, and if it meets any state standards.
5. Real estate agent commission
This is arguably the biggest selling expense, and is usually set at about 6 percent of the total sale price. Although you can bypass paying this by selling the house yourself, you’ll be missing out on a lot of opportunities by doing so. In particular, your property won’t be listed on the MLS, and real estate agents will have less incentive to push the property to their clients because they know they won’t be getting any commission out of it.
6. Closing fees
This is a laundry list of all the costs included in closing the deal, which can include and is not limited to: property taxes, transfer taxes, escrow fees, and numerous other legal fees.
The good news is that majority of the closing costs is usually shouldered by the buyer.
There are other costs to worry about as well, especially if your property is still under mortgage.
With that said, it really is important to take the time to do your research before selling your house to see if it’s financially worth it. Of course, if you want to sell your house as-is, it is possible. You can either put it up for sale yourself, or you can go to a cash buyer, who will take care of everything and will pay you for your house by cash.