Selling a Home: The Cost
Many people save for and anticipate the costs associated with buying a house. However, not everyone thinks about the costs associated with selling a home. Here are the common costs associated with selling a home.
Real estate agent commission
Most agents don’t receive a salary, so this fee pays for the time and resources the agent put into selling your home. A commission typically costs between 5-6% of the total sale cost. The agent commission is split between the buyer’s agent’s brokerage and the seller’s agent. The cost may be split evenly between the two agents or the seller’s agent may get a bit more. The commission includes costs of photographs, signage, and any costs associated with listing the home on a multiple listing service.
If you’re thinking about selling your home, there may be a few repairs you need to get done to boost the appeal of your home and even raise its value. Changes such as painting a bedroom or fixing a leaky faucet may be necessary to sell the home.
Home inspection costs
While you may not be paying for the home inspection, you may be responsible for paying any issues that come to light. Any major repairs can be a huge hit to your wallet. Before placing your home on the market, prepare yourself (and your wallet) for these repairs.
Staging helps buyers get a clear picture of what the home will look once they move in. A professional stager can help if the home is vacant or if your possessions are outdated.
If you plan to move out before selling your home, you should continue to pay for heat and electricity. A home without heat and lighting is difficult to show to buyers, and can even put potential buyers off.
Buyers do pay more in closing costs. However, sellers do have to pay as well. Closing costs for sellers are typically 2% of the home’s price. In addition to this 2%, a seller may also have to pay any outstanding property costs, water and sewage bills, and whatever is remaining on the mortgage.