The Common Fees When Selling a Home: A Simple Guide
America needs about 5 million homes to meet buyer demand. That’s one of the reasons why real estate home values are so high.
You could do your part and put your home on the market. In this market, it’s almost guaranteed that you’ll make a profit from the sale of your home.
At least it’s easy to think that way on the surface. Home sellers often only think about what they paid for the home and what they can sell it for.
They don’t take into account fees when selling a home. That could leave you disappointed when you get the final check at the end of the home selling process.
Keep reading to learn about the fees to expect when selling a home.
1. Home Inspection
It’s not necessary to get a home inspection before you list your home. It is the smart thing to do, though. This will tell you if there are issues with the home.
Waiting until the buyers make the inspection could cause delays in selling the home.
Decide which repairs you should make and which ones to put off and notify buyers of the issues. Your decision will impact the sales price of the home.
If you already moved from your home, you may need to work with a contractor from a distance. That could make it difficult to manage the repairs.
3. Real Estate Commission
A real estate agent is a valuable asset when selling a home. They help you prepare the home for sale, make recommendations, advertise the home, and coordinate showings.
You’ll have to pay for their services, which ends up being about 6% of the sales price. Half goes to the seller’s agent, half goes to the buyer’s agent.
4. Home Staging Costs
Home staging is essential if you want to get the most value from the home. Buyers will pay more based on the first impression they get.
Professional photography and home staging make a big difference. Budget about $500 for these services.
5. Closing Costs
Most of the closing costs get paid by buyers. Sellers have some costs to consider as well. Most of these costs are negotiated in the contract.
You’ll get asked to pay title fees, property taxes, and escrow fees.
6. Mortgage Prepayment Fees
Selling a home is exciting, especially when you pay off your mortgage. What sellers usually don’t remember is that they may have prepayment penalties in their loan contracts.
The penalty depends on how long you’ve had the loan and the outstanding balance.
The Many Fees When Selling a Home
When you’re selling a home, you just want to cash out to take advantage of a hot real estate market. If you want to get the maximum amount of profit from the sale of your home, don’t forget about these fees when selling a home.
The home selling process is complicated enough. You don’t want all of these hidden charges to bite you at the end of selling a house.
Hopefully, you just learned some of the fees to think about. If you enjoyed learning about selling a home, you’ll enjoy the other articles on the blog. Check them out today!