Deciding to move and sell your house can be a challenging one.
You may need more space, or perhaps it is time to downsize. Other reasons to move may be related to employment relocation. No matter the reasoning for your move, sellers have to be positioned to sell. This requires a fiscal preparedness. Here are some of the unexpected costs associated with selling your home:
- Agent commissions: Agents are typically paid around 5% for their services when selling your home. The commission is applied to the agreed-upon selling price. This is how a real estate agent is paid. He or she will work for free until the day of your closing, so the commission is a worthwhile expense and compensation structure to create a win-win situation for you and the real estate professionals because it motivates them to sell and to be invested in your transaction.
- Closing costs: The seller portion of the closing costs is usually around 1-3% of the home price agreed upon. Costs included are sales tax, a title transfer fee, attorney fees, and a fee for whoever organizes the final transaction on closing day—like a title company or a lawyer.
- Staging costs: The cost to stage a home varies widely based on factors including where you live, the size of your home, how many rooms you intend on www. A standard price for staging homes is $500 for main rooms and up to $2.500 if including bedrooms.
- Home inspection repairs: Budget a few hundred dollars for advance home inspections before you list your home and conduct the necessary maintenance and updates for the ideal price.
- Seller concessions: Buyers may negotiate a lower asking price, especially if your home has a higher “days on the market number” or visible carpet/flooring damage and peeling paint. Seller concessions may be included that ask for appliances or pay all of the closing costs. These need to be anticipated, especially if you intend to use the funds from your home sale for an additional home purchase.
- Your next home: Whether you’re sizing up or down, make sure you can pay for your new house in cash or find a mortgage structure that fits your budget. It would be worth going to a lender to determine what price point you qualify for, and from there, you can estimate the amount of cash needed for your next home purchase.
- Moving expenses: Upon selling your home, you need to be prepared for the move. This comes with costs and can range from $500 to $1,000 or more when using movers. If you do not intend to move into your next home right away, you may have to account for rent or storage.
When you add up these expenses, the total can seem overwhelming if not prepared. An excellent real estate professional can assist you with this preparation, and bringing that advisor on board early can make for a smoother process. RE/MAX Capitol Properties agents have networks that streamline your real estate journey and make a smooth transition possible.
At RE/MAX Capitol Properties you have the professionalism and commitment that comes with local ownership, backed by our complete listing program, and then combined with the power of the international RE/MAX brand. Please connect with us for your questions about selling your home at 307-635-0303 or online at cheyennehomestore.com.
Find more selling tips HERE.