In 2022, home sales reached their second-highest tally since 2007, only behind home sales in 2021. It is a great time to be selling a home! Still, selling a property comes with a few necessary costs.
Learning more about these costs can help you prepare to sell a home and maximize your profits! Do you want to learn more about the cost of selling a home?
Keep reading this guide for everything you need to know about home-selling costs.
Renovations and Repairs
One of the first costs associated with moving is the cost to renovate and repair your home. If you want to get the most money from the sale of your property, you may need to make some improvements to the condition of your house.
Otherwise, it could deter sellers from your property and will make your home more difficult to sell. Many home buyers will even order a home inspection before they buy your home.
Making repairs to your home before you list it on the market will help you maximize the value of your home and avoid negotiations with potential buyers.
Some upgrades you may need to make are to the curb appeal and landscaping of your house, to your appliances, and even to your roof. Make sure you hire professional companies for these repairs to avoid making the problem worse.
You could also choose to sell your home as-is, although this may lower your profits.
Real Estate Agent Fees
Another big cost of selling your home is the cost of real estate agent fees. If you pay a listing agent to market your home for you, you will owe them a commission once you sell your house. This fee covers the cost of listing your house to the MLS, hosting tours and open houses, and even the cost of real estate listing photos.
Most real estate agents will charge about 5% of the sale price of your home.
This can add up to well over $10,000. If you sell your home for cash or if you list your home yourself, you can avoid paying this fee.
Staging and Home Preparation
Not only do you need to make upgrades and repairs to your home, but there are many other things that you must do to prepare your home before you list it. Properly preparing your home will allow you to highlight the best features of your property to attract more interest!
One of the most common preparation expenses is staging. This is the process of arranging neutral furniture and decor throughout your home to make it easier for buyers to picture themselves living in your space.
This can cost over $1,000 if you hire a professional to stage your home.
You may also want to hire professional cleaners before you host any open houses or tours with potential buyers. If your home is dirty and grimy, people visiting your home will immediately be deterred and will not be as interested in your property.
Finally, you should do what you can to improve the curb appeal of your home! Simple things like mowing your lawn or weeding your flower beds will make your property look more attractive to potential buyers.
Closing Costs
Once you have sold your home, you will need to pay closing costs. These are typically paid by both the buyer and seller of a property and can range between 2%-5% of the selling price of your home.
As a seller, your closing costs will include recording fees, closing fees, transfer taxes, and even property taxes.
Seller Concessions
Often, sellers have to pay anywhere from 1.5%-2% of their home’s sale price as seller concessions.
This means that as the seller, you will pay some of the closing costs of the buyer. Many people selling their homes do this to sweeten the deal and encourage people to buy their homes.
Because of this, it may not be necessary if you are selling your home in a seller’s market where there is more demand for homes on the market.
Capital Gains Taxes
If you sell an asset for a profit, you have to pay something that is known as capital gains tax. This is necessary if you sell a home less than a year after you move in and if the value of your home has increased.
The capital gains tax for your home can be a significant cost when you are selling. Still, there are ways that you can lower this cost!
Holding onto your investment for more than a year can help you avoid capital gains tax. You can also reduce your taxable profit by keeping track of the expenses you paid to maintain your home.
Relocation Costs
Finally, you may need to consider how much it will cost you and your family to move to your new home. Not only is moving a stressful life experience, but it can be expensive.
From renting a moving truck to paying for moving supplies, moving your home can cost anywhere from hundreds to thousands of dollars. This is especially expensive if you are doing a long-distance move or if you pay professional movers to help you with the process.
Selling a Home? We Can Help
When you are selling a home, there are many unexpected expenses that can lower your profits. Learning more about the common costs of selling property can help you prepare for them so you can maximize your profits!
If you are selling a home and want to avoid many of these costs, We Buy Houses Nashville, TN can help! We will help you sell your home for cash as quickly as possible.
Contact us today to learn more about our process or to start selling your home.
