What Are A Seller's Costs?
Selling a home can be expensive, especially if there are costs that were unanticipated. First-time sellers often do not realize the extent of the costs of selling their home. However, educated sellers who have done their research are almost always able to significantly reduce the costs that they incur while selling their home. Below is a list of costs that are commonly associated with selling a home.
Before The Sale Expenses
Here are some typical upfront expenses. Some are a matter of choice, yet may be important investments in making sure your home sells for the highest amount possible — or sells at all.
- Exterior Painting or Power Washing - A new paint job or a good pressure washing is one of the most cost effective ways of freshening up your house.
- Repairs - Which fix-ups are necessary, for example cracked windows and stained carpet, and which should be left to the buyer is a separate discussion. However, there is practically no house that couldn't use some quick maintenance to make sure it looks well cared for a leaves fewer items for the home inspector to comment on.
- Landscaping - Make sure your yard is raked, pruned and tidied up! If your yard has not already been landscaped, plan to add some new greenery and flowering plants.
- Pre-Listing Inspection Reports - Having a professional inspect your home before you place it for sale is not required but highly recommended. These inspections inform you of any problems up front and allow you to fix them before they are identified by the buyer’s home inspector.
- Real Estate Agent Commission - You as the seller, will likely be paying the entire commission, to be split between the buyer’s agent and yours. Choose to work with a certified Realtor who has a vast expertise and years of experience.
- Credits to the Buyer - You may have agreed, based on local tradition or buyer negotiation, to pay various of the standard costs associated with closing the deal.
- Loan Payoff Costs - including possible prepayment penalty fees.
- Transfer Taxes - This is a tax on the passing of title to property from one person to another.
- Title Insurance Fees - Insures against financial loss from defects in title to property from the invalidity or uninforcablity of mortgage loans.
- Additional Fees - Including notary fees, attorney fees, and moving costs.