The True Cost of Selling Real Estate – Avoid These Nasty Surprises
Selling real estate is more than selling a piece of property—you’re selling a home. As if that emotional card wasn’t enough, there are many costs involved that can take sellers entirely by surprise.
Sure, there are traditional costs that sellers expect, such as agent commissions and closing costs, but there are also many other costs involved when it comes to selling real estate that can completely take homeowners by surprise.
Traditional Costs to Expect When Selling Real Estate
While homeowners are expecting to make money off selling their real estate, they also know that process doesn’t happen without a few costs to them.
Below, we’ve listed a few standard costs that sellers expect to pay when selling real estate.
Closing costs are fees that are paid by both the buyer and the seller. Traditionally, as a seller, you can expect to pay anywhere from 6-10% of the sale price of the home. This number ranges quite a bit due to several different factors, including:
- Where you live
- Variations in local tax laws
- Lender Costs
- Title Fees
- Various other fees—HOA, prorated property taxes, escrow fees, etc.
Real Estate Agent Commissions
Real estate agent commission fees can vary widely, and it all comes down to factors such as the company your agent works for and the location of your home. Typically, sellers can expect to pay an average of 6% in real estate agent commission fees.
Expenses Homeowners Might Not Expect When Selling Real Estate
Selling real estate doesn’t happen overnight—it takes a lot of time, preparations and patience. The overall process can be intimidating, and one reason is the “hidden” costs of it all.
By hidden costs, we don’t necessarily mean “hidden,” but rather costs that many homeowners don’t expect when they decide to sell their home. Below, we’ve taken the time to list a few of the most commonly forgotten costs that go into selling real estate.
No matter how highly a seller thinks of their home, there are always preparations that need to be done to make it ready to sell. This process involves a lot more than simply cleaning and organizing the home, and that’s why homeowners are often taken aback by the overall cost of this step.
- Staging – This is the process of bringing in generic, yet appealing pieces of furniture, appliances and other decorations to make a home look presentable to those who will be taking tours and considering a purchase. When it comes to selling real estate, this is a great way to give the home a fresh feel and helping to impress prospective buyers.
- Landscaping – Curb appeal can mean just as much or not more than the furnishing of the home when it comes to selling real estate. This means having properly maintained landscaping is vital and sometimes that means doing a total overhaul when getting ready to sell.
- Other Home Improvements – This can be quite literally anything from updating electrical wiring, updating appliances or even simply putting down new flooring and a fresh coat of paint. Depending on the state of the home, it will need to meet specific village/city codes and may need extra attention before it can be sold.
Home Warranty for Buyers
A home warranty is often used as an incentive to sweeten the deal for buyers. These warranties help a home stand out from others on the market in the area because it shows that the homeowner has confidence in their property.
These warranties can cost sellers anywhere between $300-$500 and can cover a variety of things, such as:
- Electrical systems
- Kitchen appliances
- Heating/Cooling systems
- Plumbing system
Depending on the given location of the property, there are quite a few taxes that can come into play when selling real estate:
- Transfer tax
- Prorated property taxes
- Capital gains tax
- Property taxes
Vacating the Home
Probably one of the most unexpected costs that sellers don’t consider when selling real estate is the overall cost of having to vacate the home. This can be for a day or any given period while the house is being shown.
Hidden costs to vacating the home can include:
- Hotel costs/Other temporary housing
- Packing/Storing personal belongings
- Utility costs
Selling Real Estate with The Problem Property Pals
Selling real estate is stressful as is, but when it comes to getting the job done quickly and efficiently, we here at Problem Property Pals are ready to help.
Our process is simple:
- Contact us to discuss your home, your questions and to schedule a home visit
- Do a home visit and walkthrough
- Choose your closing date and sell your home
We buy entirely “as is” – regardless of the condition of your home or the work that may need to be done, and we pay top dollar!
Ready to get your fair cash offer for your home? Contact the Problem Property Pals today by calling (267) 244-9163 or fill out our form below!