Selling your home is something that most people don’t have a ton of experience with, and it can seem like a complicated process. One of the things that tend to trip people up is how much it actually costs to sell your home. You would think you would mostly be earning money, but there are some things you need to remember in your budget.
Traditional Costs of Home Sales
If you decide to sell your home in the traditional real estate market, you will have to pay for all the costs that are associated with that. You will have to pay the realtor’s commission, the cost of listing, any home repairs and improvements, and part of the closing costs. Your realtor’s fee is likely to be the largest of these expenses and is usually around 5% of the sales price. These are just the required costs, and you may end up spending even more. Open house refreshments, staging, and local advertising may seem like small expenses, but they tend to add up pretty fast. You also need to figure in paying off your mortgage and paying any capital gains taxes before you can calculate how much you will actually earn from your home sale.
Other Ways to Sell Your Home
If a traditional home sale doesn’t appeal to you or you are trying to keep the costs lower, there are other options you can use to get rid of your property. Selling it without a real estate agent or as-is will cut down on some of the larger costs, including the realtor’s fee and any repair costs. If you want to cut it down even further, you can also sell your home to a cash home buying company. Not only does that cut out realtor and repair costs, but you also don’t have to list your home, stage it, or even pay closing costs. The only thing you will end up owing is whatever you haven’t paid off on your mortgage and taxes from the sale. You can also be confident that you are getting a fair price for your home, without having to worry about tricky negotiations.
How to Keep the Costs Low
The biggest thing you can do to keep the costs low is to plan ahead and consider what you and your home really need. If you can sell it without repairs, why make them? If you have nice furniture, you can remove some of the more personal touches and stage it with your own things, rather than renting furniture. When making decisions that cost money, the best thing to consider is whether or not this choice will bring in a net profit or net loss. Use this question to guide your choices.
Don’t let the prospect of accidentally paying too much to sell your home overwhelm you. Make sure you pay attention to all your options and make the choice that is the best for you. This is about getting ready for the next big move in your life, and your attention should be focused ahead.
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