Selling your home can be both exciting and stressful. You may have high hopes to get the exact price you think it is worth, but sometimes your loving memories cloud your judgement about your home. If you put your home on the market, it could require you to open your wallet and potentially cut into your profit.
Some line items may not come as a surprise, but there can be a handful of hidden costs. It is easy to fixate on the money you may make as a home seller, but you can’t forget the cost of selling a house. You could be spending upwards of $20,000 on average for hidden costs associated with a home sale. This money is spent in three main categories including location, home preparation and location.
Where you live or your zip code can influence how much you may pay to sell your home. Extra costs can be influenced by regional differences such as whether the seller is required to pay state or transfer taxes.
An example would be if you live in a larger city, you may have to pay over double than the national average in hidden costs when selling your home. You have to find someone to appraise your home to arrive at the right price to sell your house quickly. Independent appraisers can range from $350 to $500, and you may also have to pay an inspector around the same range to inspect your home as well.
Another unavoidable expense for sellers is staging or home preparation. Staging a home can cost a couple of thousand dollars or even upwards of $600 per room if you hire a professional. Staging gives your home’s interior a face-lift and often means removing clutter and personal items from the home to make the property more appealing to the average buyer.
You also need to have photos and descriptions that show the best of your home, which is usually best done by a professional. You could try to do it by yourself, but there is research that shows a staged house sells faster than a non-staged house, so the extra cost could be well worth the cost.
Closing costs are also another hidden fee in selling a home. The number of fees that are incurred during the sales process are usually evenly split between the buyer and seller at closing when the final documents are signed and the seller receives a check.
Closing costs can run from anywhere from 3% to 7% of the sales price and they include the cost of mortgage insurance, prorate property taxes, title insurance fees, loan processing costs, insurance charges and the cost to record the deed. You also may live in a state that requires an attorney present, which is another cost.
You can save money if you shop around and negotiate when it comes to companies and professionals you use. Also, choose when you sell your house carefully, meaning the best time to sell is the spring or summer months. Lastly, try to DIY as much as possible.
Any repairs, landscaping, painting or even staging you can do yourself can help cut costs. Planning ahead can help you reduce costs and not feel as financially strained and stressed. Make sure you keep track of your expenses and stick to your budget to get the best bang for your home.
