How much does it cost to sell a house?
Although the exact answer to this question varies, there are costs associated with nearly every home sale, with limited exceptions.
Check out the following guide to learn more about the cost to sell a house and additional research you can do to prepare for the sale of your home before it even hits the market.
Your State Trends
If you’re ready to sell your home, don’t act on impulse. Do research on your local real estate current trends, like if it is a buyer or a seller market, how many homes are currently for sale, and sales prices.
Another important, but often unthought of, consideration is knowing the best time to sell a house in your state.
Purchase Before Sale
When a seller purchases a home prior to selling theirs, they must maintain both properties. Although someone is not occupying the residence, maintenance costs must still be paid.
This includes all utilities and any additional expenses unique to the situation like paying someone to maintain the grass and landscaping.
Repair Costs
In some cases, repairs are done prior to a home going on the market. However, when a buyer requests a home inspection, it is not uncommon for repairs that were invisible to the naked eye to come to the surface.
When this is the case, it can go a few ways. A buyer will likely either ask the seller to have the work completed prior to closing or present the seller with a counteroffer to compensate for the additional cost of the repairs.
Closing Costs: The Inevitable Cost to Sell a House
What makes up the fixed closing costs? Expect to pay for transfer taxes, fees associated with mortgage processing and escrow, and notary fees. At the closing, the seller should also expect to pay owed property taxes, owed mortgage balance, and a portion of the water and sewage bills.
It is also possible that the buyers ask for coverage of closing costs from the seller, which can be declined and negotiated at the seller’s discretion.
Various Additional Fees and Expenses
There may be additional fees when selling a house including capital gains tax and realtor commission. One exception to this is in the event of the home being for sale by owner.
The sale can also mean the seller pays for the home warranty for the buyers, which is very common in recent years.
On average, all costs considered, the total cost due at closing for the seller is between 8% and 10% of the total sale price.
Prepared for the Sale
How great is it that you no longer need to Google search “how much to sell a house” and you know just what to expect financially during the process and on the day of the closing?
The cost to sell a house is officially no longer a mystery leaving you to wonder if there will be hidden expenses when all is said and done. Go forth with confidence listing your home and breathe a sigh of relief.
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