If you’re considering selling your house, you’re probably wondering how much it will cost. The final amount will depend on several factors, such as the offer you accept, whether you help with your buyer’s closing costs, the repairs you handle, and more.
To give you a general idea of what to expect, here’s some information on the common expenses you should be prepared for.
However, it’s important to keep in mind that most homeowners today have built up significant equity in their homes. This means that when they sell, they stand to make substantial gains, which can quickly offset the selling costs. Chances are, you’ve built equity too, and it can help you recoup costs and potentially put some toward your next home purchase.
Let’s break down some of these costs in more detail, so you understand where you may be able to save and when it makes sense to invest a little more.
Closing Costs and Commission
These are the fees you’ll pay at the closing table to cover various parts of the sale. You’ll have your own closing costs, and you may also offer to pay a portion of the buyer’s costs as a concession. According to U.S. News Real Estate:
“Closing costs are fees that are paid to finalize the transaction and transfer ownership of the home to the buyer. Sellers can expect to pay 2% to 4% of the home’s sale price in fees and taxes, in addition to agent commissions.”
Taxes will vary by state, and agent commissions are negotiated upfront. Keep in mind that the numbers are examples and not exact figures. Plus, if you’ve made payments toward property taxes or mortgage escrow, you may receive a credit at closing to help offset some of the selling expenses.
Pre-Listing Inspection and Repairs
Some sellers choose to have a pre-listing inspection to identify any issues that may come up during the buyer’s inspection. This allows you to address repairs before listing the house, helping it make a strong impression from the start.
If you choose not to do a pre-listing inspection, your agent can offer advice on areas like paint colors, cosmetic repairs, and what buyers typically look for. This ensures you’re focusing on changes that are likely to provide a good return on your investment.
Home Staging
As housing inventory increases, you may want to take extra steps to make sure your house stands out. Staging is an optional way to enhance your home’s appeal. It may involve renting furniture if the house is vacant or adding decor to warm up the space. Some staging can even be done virtually after photos are taken. Bankrate estimates:
“Home sellers typically spend between $782 and $2,817 on home staging, though the costs can vary widely.”
If you prefer to skip staging, rely on your agent for advice on how to present the house. A great agent might suggest simple steps, like removing extra furniture to open up a space or rearranging decor to depersonalize certain areas.
Why Working with an Agent Is Crucial
If you’re looking to minimize costs, you have some options. For example, you could skip optional steps like staging or a pre-listing inspection. However, it’s crucial not to cut corners by selling without a real estate professional.
An agent is an invaluable resource throughout the entire selling process. They’ll offer customized advice on staging, repairs, and marketing, which can actually help your home sell for more in the long run. By working with an agent, you can avoid unnecessary costs while ensuring your home is ready to attract buyers.
Bottom Line
Want a clearer picture of what to expect when selling your house? Reach out to a local real estate agent for more information.
