If you’ve considered the possibility of putting your house on the real estate market you’ve probably wondered how much it will cost to sell a house. Selling a home may not seem like a complex task at first but it takes more than placing it on the market.

Not knowing in advance what it costs to sell their homes is a major profit-shrinking mistake most homeowners make. This article highlights the fees you as a home/property owner will incur when you sell your home.

What Are The Costs Of Selling A Home?

Before you contact your realtor about selling your home, you need to know that there are some fees you will incur. Some of these fees may come before, during, or after the deal is closed. Here are some of these fees and costs you may incur:

#1. Cost of Paying Off Mortgage

If you have a mortgage on the home you hope to sell, you will need to pay off the remaining balances. The profit you make from the sale should be able to cover the remaining loan balance. This is why you shouldn’t sell until the loan balance is lower than your home’s current value.

#2. Property Tax

As a homeowner, you are required by tax laws to pay property tax on your home. If by the time of selling the home you still owe tax payments, you could be charged a prorated share of what your buyer would pay.

However, if you have paid property taxes before selling, you may get a rebate after the closing date.

#3. Commission Fees Of Realtors

Working with realtors brings with it a real estate commission to be paid by closing. This real estate commission is usually a 5% or 6% charge on the sale price. 

More often than not, the seller bears the cost of this commission that is eventually split between agents of buyers and sellers. Some homeowners avoid this fee by listing their property as for-sale-by-owner (FSBO) but then also could take on the risk of not having proper representation throughout the transaction. If you choose this route, you may be more inclined to sell to a reputable investor like Ash Creek Properties who can help make the transaction seamless. 

#4. Pre-Sale Inspections

Although optional, a pre-sale inspection is a foolproof way to guarantee your property has no mechanical or structural problems.

A pre-sale inspection lets you make major repairs before buyers come pricing. This saves you from buyers down pricing your property or demanding repairs because of faults.

#5. Utility Bills

For the period your property will be on the market, you need to keep your electricity and water running.

This is helpful because as buyers come to inspect the house, these are some of the things they’ll check out. A home without operable power, air conditioning, heating, or water could discourage a mainstream buyer.

#6. Home Staging and Repairs

From the exterior to the interior, you need to make all repairs before putting your home for sale. Windows, water pipes, and painting all needs to be done before your buyer’s home inspector shows up. The house should also be professionally cleaned and kept up the entire time the house is on the market to make the best possible impression.

If you want to attract top dollar for your home, staging may be necessary in order to help potential buyers get a good sense of what the home would look like if they were to live there. Removing most of your family photos and unique-taste design elements will help the potential buyers envision a future in your home. If you work with an agent, they can often help with staging or make recommendations about what should be changed before the house is shown to the public.

#7. Capital Gains Tax

Capital gains tax is charged when you sell your property at a price more than what you bought it for. The difference between the buying amount and the selling amount is called capital gain and it is taxable. There are tax breaks that can reduce this but you’ll want to consult a tax consultant or real estate attorney if you are unsure about the potential tax penalty on the gains.

#8. Cost Of Closing

Closing costs usually run between 1% to 3% of your real estate's sale price. These costs may include title insurance fees, title transfer fees, prorated property taxes, excise taxes, and the cost of hiring an attorney. 

Conclusion

Even in a Seller’s Market, there are certain costs associated with selling a home or property that should be considered. If you would like to get a free estimate on what we’d be willing to offer you for your property, please click on the button below and fill out the brief form. Keep in mind that we are happy to purchase your home without the need for you to incur many of the fees stated above.