The US housing market is in the midst of an enormous boom, with record sales and high prices. But as mortgage rates rose with inflation and housing costs, sales began to slow. That means now is the time to market your home.
However, nothing comes for free, and selling the property is tantamount. Read on as we provide costs for selling a home.
- Real Estate Commission
This is normally the biggest selling fee you’ll pay for your home. That’s about 5% to 6% of the final selling price. This amount is split between the real estate agents of the customer and seller.
Unfortunately, in most cases these fees are the responsibility of the vendor. You may be capable to negotiate a lower fee even though this only applies if the house is prepared to sell quickly.
There are other options to avoid paying real estate agent fees. You can list them yourself, even though money and time often equates to an agent’s fee. You can study here about selling to cash buying companies as well.
- Pre Sales Inspection
You do not need to schedule a pre-sales inspection. However, when selling a home, please know that there aren’t any surprises in store. This will warn you to any major issues before the customer steps in and does their own investigation.
If defects are found, you have a legal responsibility to reveal them. You can fix it or arrange a lower cost deal with the vendor.
- Home Improvement
If you want to understand how to sell a house, making it look good can go a long way. When you are in a buyer’s market where you have lots of competition from other properties, that’s important.
One of the cheapest ways to spruce up your home is with a fresh coat of paint. Additionally, you can remodel the exterior or grounds, replace fixtures, and perform general repairs. If you have an old-fashioned bathroom or kitchen, you might consider a full replacement.
- Closing costs
Closing costs are a separate set of fees from agent commissions. Luckily, there is a lot less involved for the vendor than for the customer and the fee generally ranges between 1% and 3%. They include attorneys’ fees, record fees, and property taxes.
This will also include transfer taxes. This is the fee for changing the deed from one owner to another. The amount depends on the country where you sell.
Another closing cost is your mortgage payment, assuming you have one. The money you make from the sale will pay off your old loan.
This will involve a prepayment penalty, generally 2% to 4% of the original loan. If the sale does not cover all the loan, you may must make up the shortfall.
The Cost to Sell a Home
Now that you know the cost to sell the house, do the math. If you have money left to pay off the mortgage, compare your projected expenses and income against this.
If you found this article insightful, we have much more. From buying to selling, we can help you find your ideal property for the coming year.
