Home sales have fallen in the U.S. by 1.5%. That’s a rate of 4.71 million in September alone.
If you’re ready to move on to greener pastures, you might wonder if now’s the time to sell. How much does it cost to sell a home anyway?
After realtor fees, escrow, and other factors can add up quickly. Then you might have sellers who want you to pay for upgrades.
While all this might seem confusing, it doesn’t have to be! Read this guide on how much it costs to sell a home today.
Realtor fees can range from 5-6%. This will depend on your location as well.
You’ll also need to factor in other costs, such as relocation, closing, and repair costs. All these expenses could add up to 10% or more.
Besides selling costs, you might have to wait a while for the right buyer. They might need to qualify for a mortgage and close the deal. There are also hidden costs of selling home.
To stand out, many are hiring professionals to stage their homes. You could save money by doing it yourself, but it might not be the same.
Staging is about attractively placing decor and furniture. They tend to take down personal items to allow buyers to envision themselves in the home.
A professional stager can range between $2,000-$4,000. If you decide to go it alone, you’ll need plenty of time and research to prepare each room.
Consider what you’ll need, such as new furniture, paint, curtains, light fixtures, etc. You might also need to hire a professional carpet cleaning service.
It can help when you’re ready to sell! Staging could increase your home’s value.
Sales can fall through if you don’t fix home repairs or maintenance. You might try to hide a problem that’ll surface in a home inspection.
Buyers might ask you to make the fixes necessary. If you don’t, they might take their money elsewhere.
Ensure your home is in good condition before you list it. Check for cracks or openings, apply a fresh coat of paint, and see if anything is broken.
Consider a pre-inspection assessment if you’re not sure where to begin. Next, decide what you can do yourself or if you’ll need to hire a professional. Speak with multiple contractors to receive quotes.
Landscaping could sell a property or turn buyers away. Check your porch and front and back yard.
If you see anything broken, fix or replace it. Cut the lawn, rake leaves, and shovel snow. Plant flowers and flower pots.
Tear down old fences and consider a replacement. You could also hire a professional landscaper.
Wow buyers with professional photos and videos. These photos normally aren’t a large investment, usually a couple of hundred dollars.
Listing agents might pay for them. They might also hire drone photographers to take pictures of the outside from above.
A realtor will normally handle marketing. They might pay for ads and post your home on social media.
If your home is for sale by the owner, you’ll need to place the home on various websites and pay for ads. Buy open house materials, signs, and print flyers.
Many don’t think about the cost of vacating the home. You might have an overlap between your current home and the future one. Sellers wind up paying for two mortgages at once.
You’ll still need to pay for utilities when your home is on the market. The lights will need to be on for open houses and other showings. Turn off utilities as soon as possible to save money.
Consider the price of movers as well. If it’s a local move, it’ll be much more affordable than long-distance ones.
Check your homeowner’s insurance policy. It might not cover your home when it’s vacant. Speak to your insurance agent about adding additional riders to cover that period.
While a portion of the sale will pay off the mortgage, the payoff amount on your mortgage might be less than what you owe.
You may need to add prorated accrued interest to the total balance. Fees could be tacked on if there’s a prepayment penalty for your mortgage.
Reach out to your lender to find out the terms of the loan. You could also check your loan documents.
If you sell a home for more than you paid, that’s a capital gain. You might need to report it on your federal tax return.
Many homeowners can exclude a certain profit from their taxes if they haven’t used a tax break on another home within the past two years. This home needs to be your primary home for the last two years.
For rentals, you might be able to receive a tax break. Speak with a tax professional to see your options.
There are also property and transfer taxes. It’s best to reach out to a tax specialist to understand what you’ll owe.
Transfer taxes are from the local government for transferring ownership. It’s a percentage of the sale price. Many states don’t require this.
Understanding How Much It Costs To Sell a Home
This guide gives you a breakdown of how much it costs to sell a home. Take your time deciding if now’s the right time to get started. Speak with realtors in your area and see how much you might be able to receive for your home.
Would you like to read more informative real estate content? Then, be sure to check out our other articles today!