When selling a home, there are several costs to consider. Here are some common expenses associated with selling a home:
- Escrow fees and title fees: Buyers and sellers each pay for some of the escrow and title fees. There are also recording fees and transfer taxes that are usually paid by the seller. Together these fees are usually about 1% to 1.5% of the total sales price.
- Real Estate Agent Commission: In a typical real estate transaction, the seller is responsible for their agent’s real estate commission as well as the commission for the buyer’s agent. The commission is negotiable but the total in our area generally ranges from 5% to 6% of the sale price.
- Mortgage Payoff and Prepayment Penalties: If there is an outstanding mortgage on the property, sellers need to pay off the remaining balance at closing. Some mortgages may include prepayment penalties, so sellers should check with their lenders to make sure there aren’t any surprises.
- Home Repairs and Improvements: Some sellers may want to invest in repairs or improvements to make their homes more appealing to buyers. These costs can vary depending on the condition of the property and the desired upgrades. Ask your agent what improvements might be worthwhile for you to make before putting your home on the market.
- Staging: Professional staging enhances a home’s appeal and attracts potential buyers. In most cases, staging can decrease the time on the market and increase the sales price. While professional staging is usually worth the investment, and some stagers will let you pay through escrow, there are some measures you can take yourself if you’re interested in staging on a budget.
- Home Inspection: Some sellers choose to conduct a pre-listing home inspection to identify any issues and make necessary repairs. Keep in mind that anything you find out about during the inspection must be disclosed to potential buyers, but if you don’t want to get hit with any surprises, having an inspection may be the way to go. You may also want to get a termite inspection done prior to putting the home on the market. Buyers often ask for the seller to provide a termite clearance, which could include treatment as well as repairs to correct any termite damage or rotted wood.
Have questions about the home selling process? We’ve put together a whole series of videos on the home selling process which you can find HERE. Or give us a call at 562.896.2456!