6 Unexpected Costs Of Selling Your Home
Selling your home isn’t easy and can be very expensive due to unexpected costs. Although when selling your home, you might be focused on the new location and the amount you might make from your previous home, you may need to factor in the unexpected costs to avoid financial abrasion and delays.
You may need to pay more than just the agent fees required to sell your home with Teton valley Realty or any realty company as well as property costs. In addition, you may need to know how to manage or mitigate these costs to navigate the process of selling very smoothly.
As a result, you should take the time to research all the unexpected costs you may need or you’ll encounter along the process of selling your home and how that may affect your budget or profit. You won’t be surprised or worried every time additional costs crop up.
So, if you’re finally ready to sell your home and move out to a new place, you may not have to be worried about unexpected costs. Discussed below are some unexpected costs that you may encounter.
- Presentation Charges
Presentation charges vary in price depending on the condition of your current home. If your home is still in tip-top shape, your presentation charges will be lower than when it needs more touch-ups and repairs.
Some presentation charges include decluttering your home before showing it to the interested buyers. You can begin by clearing your countertops and removing all the items on your floors.
Most times, buyers want a visual representation of how the home will look once they bring in their furniture and additional things. So, ensure that you factor in all the decluttering costs and try other alternatives to keep the costs manageable.
Another cost you might encounter is having your home professionally deep cleaned. This might cost you a considerable amount but can be free if you choose to do it yourself. You might need to have a fresh coat of paint on your walls, which can be costly and a selling point for your house.
- Home Staging
A buyer might be interested in a house, especially when they have a visual representation of what it might look like once it’s set up. Getting a home stager who uses the right combination of accessories, decorations, and lighting will help to make the house get a new appeal.
A consultant will assess the space and plan to set it up when staging your home. Once they give you representation, you can either choose to work together or use the advice to attempt staging it independently.
Home staging normally has a lot of benefits, with the main one being that it helps your sales go faster and might be more profitable. In most cases, staged homes tend to sell faster than plain houses that don’t offer a visual representation of what the house may look like.
In addition, a staged home offers better first impressions and helps your house stand out to potential buyers. If your house feels cramped, consider getting a stager who will put their creativity to work and give an illusion of a bigger and airier space, making it easier to sell.
If you choose to stage your own home and save on the costs, you may need to get it right. So, to start, depersonalize your house by removing personal items such as family photos and memorabilia to make the space more neutral.
Next, you may need to clean and organize your house; however, consider hiring professionals if you aren’t sure that you can get it done effectively. With a clean and organized home, you can consider adding accessories such as affordable candles, artwork, decorative blankets, and colorful throw pillows to further the appeal.
Take time and find a theme for each room, and once you settle on what you like, start working on it. However, avoid going over your budget and look for staging pieces that are affordable but still good enough.
Once you finish staging the home, consider getting a professional photographer who will take quality pictures of your home. These photos can be uploaded to real estate websites which normally have buyers looking for a new place to call home.
Utilities are an important part of selling your house, especially when it’s still on the market. As a result, if you choose to move out before selling your house, you may need to continue paying for the utilities needed to run your home.
When buyers walk into a house, they normally want to see the room in great lighting, and as a result, you may need to pay for electricity. In addition, depending on the period, you may need to have heating or cooling to create a comfortable environment for the potential buyers.
Many sellers may underrate or overlook utility costs during the selling process, but they may need to consider them to avoid getting caught off guard. Luckily, since you won’t be staying at the house, you can find alternative ways to reduce utility bills as much as possible.
In addition to your utilities playing a big role in showcasing and selling your home, it also offers additional advantages. For instance, by leaving your air conditioning on, you’ll also be saving your home from developing mold.
If your home gets mold, you may need to pay more for mold removal, which will cost you more. Additionally, leaving your utilities on will help your potential buyers know what they’ll have to pay to maintain the house.
To come up with the estimated cost of the utilities, consider monitoring the bill for a month and use it as a rough estimate. Then incorporate the costs and the other one to avoid going over budget and ruining your financial plan.
- Repair Costs
If you’ve lived in your house for a long time, it has experienced some damage or wear and tear. When potential buyer is ready to purchase your house, they might choose to schedule their inspection.
This inspection is meant to determine whether the house has any issues that might affect the general value or safety of the home. Most inspectors tend to have a flat rate charge, which increases depending on the damage.
As a result, you can choose to have a pre-sale inspection where you bring in an inspector before your home is listed. This inspection is to identify the issues and needed repairs ahead of time, which tends to be much cheaper.
Although the repair costs may be high, it’s much better to have it fixed to avoid having the buyers ask for lower prices due to the repair costs. Some repairs may include refinishing the flooring, especially if your house has damaged hardwood floors.
In addition, you should consider improving your home’s curb appeal as this is the first thing the potential buyers will see. As a result, if the exterior of your home is neglected, the chances of a buyer being interested are low.
So, improve your curb appeal by mowing the lawn, edging your walkways, and fertilizing the grass or the flower beds. If you invest in basic curb appeal, you may gain more value, and buyers will be drawn to your house. So be prepared to pay for all these repairs and, if possible, take time to find alternatives for all the repairs to cut down on the costs.
- Closing Costs
Once you’ve accepted an offer, you’ll need to transfer ownership to the buyer, which costs money. These costs are known as closing costs and may range from six to ten percent of the sale price and will be deducted from the sales proceeds.
Luckily, these costs won’t affect your bottom line as you’ll receive a closing disclosure days before the actual closing. Some of these costs may include the following:
- Real Estate Agent Commissions
Of all the closing costs, real estate agent commissions are the most significant and are charged for the representation and sale of the house. You should be ready to pay close to six percent of the bottom line. Each agent gets close to three percent each for the sale’s closing.
To lower this cost, consider taking them for sale by the owner method, where you may have to pay only the buyer’s agent and not both agents. But even if you choose to go with both agents, consider negotiating for a lower commission, especially if your house is of high value.
- Title Insurance
Title insurance offers both the seller and the buyer protections if an issue with the ownership crops up. The cost of title insurance normally ranges but can go up to a thousand dollars.
In addition, you may need to pay title fees that are meant to cover the lender’s policy. These fees are paid after a title search is conducted and the ownership is verified. Before paying the full amount, consider negotiating as it might lower the price.
- Taxes Involved
Taxes and fees are non-negotiable when closing a sale and are quite few. These taxes vary from state to state or by local jurisdiction, depending on the tax laws. One of the main taxes includes property taxes, normally split between the buyer and seller.
In addition, you may need to pay transfer tax that covers the costs of moving the deed to new owners for the transaction to be completed. However, this tax will depend on where you live as some states don’t charge these fees and will be calculated depending on the value of your property.
- Sellers Concessions Charges
Sellers’ concessions are costs covered by the seller and aren’t a requirement, especially when a house makes a lot of interest from the buyers or if the property is in high demand. However, if your house is located in a slow market, you may need to offer concessions which are helpful when negotiating a deal.
In addition, concessions will make it easier for you to sell your home as it will cover buyers, making it easier and accessible to a greater number of home buyers. Concessions costs may cover origination fees, commitment fees, discount points, etc. You can offer sales concessions in cash, decorating allowances, moving costs, furniture, etc.
- Conveyancing Costs
For smooth running, you may need to employ a conveyancer who will take care of the paperwork involved in selling your home. This paperwork may include organizing mortgages, contracts of sale, and title searches, amongst others making a conveyor’s role vital.
However, when looking for a conveyor, take time to get several quotes and compare them before choosing the best price from them. Be aware of getting extremely cheaper conveyers who may fail to offer the best services.
- Additional Costs
Once you’ve taken care of the legal and important parts of closing a sale, you may still need to pay for additional services. For instance, you may need to pay for the cost of moving, which means transferring your belongings from one property to the other.
The cost of moving will vary depending on the number of belongings you have and the distance between the two locations. Although it might seem small, moving can be expensive, and you may need to set apart a certain amount of the budget when looking to sell your home.
However, you can opt for the alternative instead of getting a removalist. You can consider enlisting the help of friends and family who can help you move for less.
Selling a house isn’t as easy as it may seem and the chances of encountering unexpected costs are extremely high. You may need to keep in mind that the closing costs may reduce your property costs, and you may need to consider this when setting the worth of your house.
Before paying the costs, consider finding alternatives, and if possible, you can try to lower the bottom lines. Additionally, you should consider the paying costs that will cover you legally to avoid facing issues in the long run.