Decoding the Hidden Expenses: Unveiling the True Cost of Selling Home

When selling a home, there are a number of costs that need to be considered. From your realtor commissions to home preparation and moving costs, understanding the expenses associated with selling your property is important for getting the most out of your sale. I’d like to provide you with some valuable insights on each cost factor so that you can make an informed decision when it’s time to put your house on the market.

1.Real Estate Agent Commission: Real estate agents typically charge between 3% – 6% of the total sales price of a home. When shopping around for a realtor, make sure you consider their experience and track record to ensure you’re getting the best deal possible.

2.Home Preparation Costs: While home staging isn’t always necessary, making sure your house is in tip-top shape before putting it on the market can help attract more potential buyers. This may include basic cleaning and maintenance as well as minor renovations or repairs.

3.Closing Costs: When a home is sold, certain closing costs must be paid by either the buyer or seller. These can include attorney fees, title insurance fees, recording fees, transfer taxes and other miscellaneous charges that accumulate during the process of selling a property.

4.Mortgage Payoff and Prepayment Penalties: Before your home can change hands, any outstanding mortgage balance needs to be paid off. This includes any penalties for early payment of the loan, such as pre-payment fees or points charged by your lender.

5.Home Inspections/Appraisal Fees: Most buyers will require a home inspection before making an offer on your property, so it’s important to budget enough money for this expense. Additionally, if you are selling a property that has been appraised in the past, you may need to pay for a new appraisal before listing your home.

6.Marketing and Advertising Expenses: Depending on where you live, you may need to invest in marketing and advertising materials such as flyers, postcards or digital ads to reach potential buyers. You should also consider enlisting help from a professional photographer to ensure your property is accurately represented online.

7.Moving and Storage Costs: If you plan on moving out of your home before it’s sold, you will need to budget for any associated costs such as packing materials, movers and storage fees. Make sure to factor in these expenses into your overall budget when selling a house.

Understanding the associated costs with selling a home, you can make an informed decision and get the most out of your sale.

Hello! I'm Jay Thomas, a REALTOR in Houston, Texas. Chances are you and I share a similar passion, Real Estate! I also have a passion for building businesses, working out, inspiring others, technology, sports, and people. Connect with me on Facebook and Instagram!