Be Prepared: 6 Hidden Costs of Selling a Home
Are you planning to sell your house anytime soon? Though these extraordinary times changed the landscape of the real estate market, some people still push through with their plans of selling their homes.
The reasons vary. And if it involves survival because of economic challenges, some homeowners tend to sell their houses as fast as they can. In turn, they fail to prepare for unexpected expenses.
And because of this, they fail to maximize the value of their property.
But how exactly do you prepare for the hidden cost of selling a home? What are these factors that you need to cover before placing that “for sale” sign in your front yard?
Continue reading below as we discuss six of the most important hidden costs you should be aware of.
- Basic Home Preparation Expenses
One of the first expenses you need to prepare for before selling your house is the preparation cost. This cost covers different areas and aspects of your property.
For starters, you need to spend on cleaning the house inside and out. Now, this doesn’t mean wiping all the surfaces until they’re all shiny and spotless. This means professional services that involve deep cleaning.
Another is moving your belongings and placing them all in storage. It is likely that you still have some clutter within your house. And you cannot leave these stuff the way they are if you’re looking to welcome prospective buyers inside.
Thus, you need to gather all your items and sort them accordingly. Group the ones that you can part ways with and separate the ones that you wish to keep.
For the latter, you may have problems where to store them temporarily. In this case, you may consider paying for storage. Generally, you can find a storage unit measuring 5ft x 5ft at $60 a month.
Another aspect of basic home preparation involves your outdoor space. In this case, you need to set aside for your landscaping. Apart from mowing your lawn, you need to trim your overgrown plants.
You may even need to cut down some branches of your old trees. In this case, a comprehensive landscaping service will cost you around $150.
- The Home Inspection
Another hidden cost of selling a home that you need to save up for is the home inspection. As you talk to your real estate agent, he will advise you to get a home inspection before listing your property.
Here, professional inspectors will give you a report showing key issues in your house. These are the issues that prospective buyers will likely raise against your property.
Sometimes, these issues can drive away buyers. This is evident when the problems pose serious health or safety hazards.
With a home inspection report, you address these pressing issues accordingly. The average cost of a home inspection can be anywhere between $260 and $350. You may also opt for additional inspections.
These inspections will check for possible mold and termite problems. It can also cover your septic tank. You can even check for the presence of radon and asbestos.
- Measurement Expenses
Even if your house is good-looking, you will have a hard time selling it if you don’t know its exact measurements. To find out the measurements of your property, you will have to contact the lawyer you hired when you first purchased your home.
Alternatively, you can look for the survey that came with your purchase. It should contain the details concerning the property and lot size measurements.
But if you’re in a bit of a rush or you can no longer connect with the lawyer, you may need to hire a company that can take the measurements accurately.
- The Taxes and Closing Costs
Taxes, like death, are the only other thing constant in this world. And even as you sell your house, you will have to deal with taxes. When we talk about the average cost of selling a home, it will always include property taxes in the equation.
These taxes are part of the closing costs. As for the breakdown, the closing costs include the property taxes, the transfer tax, and the title insurance.
These fees are on top of the lawyer’s fees, escrow fees, and agent commission. As for the commission, prepare to pay around five to six percent of your property’s final price. In turn, your agent and the buyer’s agent will split between the commissions.
As for the escrow fees, they range from anywhere between $500 and $2,000. You and the buyer will share the total amount. So if the escrow fees amount to $2,000, you will have to pay for half of it.
- Repairs and Renovations
Like it or not, there will always be something in your house that needs some repair. In some cases, you may need to renovate a certain portion to make your house more appealing.
Though repairs and renovations vary, there are integral items you need to revisit. These include your roof, electrical wirings, and HVAC.
Also, make sure your home is clear of any water damage or pet damage. As for the renovations, kitchen and bathroom renovations are the most sensible projects to consider. These are the renovations that can substantially increase your home’s resale value.
But if you’re on a tight budget, pursue a kitchen or bathroom renovation only if they look dated and dilapidated.
- Home Staging
Last but not least, save up for a home staging professional. Home staging is one of the fastest ways to make your home more attractive in the eyes of homebuyers. A home stager can highlight the living potentials of your property.
The average cost of home staging in the United States is about $1,251. This doesn’t include the fees for a professional photographer. Set aside another $200 for this one.
And in case you live in Pittsburgh and you wish to buy a new house after selling your current one, you can do so at a lower interest rate. Check out this article for more details.
Learn More Beyond the Cost of Selling a Home
By understanding the cost of selling a home, you can better manage your expenses during the home-selling process. You can also find the right buyer faster as you make your home more appealing to the market. But having a “selling a home checklist” is not the only thing home sellers should have.
We invite you to expand your knowledge by reading our other articles. We discuss topics on real estate that will benefit buyers and sellers alike.