What Are the Costs When Selling a House? 4 Factors to Consider

Selling your home can be stressful, and more expensive than you may be anticipating. Most sellers know about the common closing costs that are associated with selling a home but don’t consider all the smaller expenses that go into putting their home on the market. 

The process of selling your home can be time-consuming. Most sellers spend more than six months from the time they decide it’s time to sell, to their moving date. That is a long time to be embroiled in the costs and preparation for selling your home. 

Whether you sell your home privately or work with a real estate agent, you will have to make a plan to pay for all the hidden and sometimes overlooked costs. Let’s take a closer look at what it really costs to sell your home. 

Home Prep

When selling your home, you want it to look its best to draw in interest from potential buyers. Preparing your home to list will take a bit of work and money. Most homeowners want to give their homes a deep cleaning, and if you bring in the professionals you may spend up to $200.

Between the costs of renting furnishings for staging, cleaning up your landscaping, and your marketing costs you could spend another $2,000. If you are selling without a real estate agent those costs may be a bit more expensive.

Moving Costs

If you have found a new home before your old home sells, you could be on the hook for some extra expenses. You will need to pay for your moving costs or rental prices for extra storage. Your home insurance will need to be updated. Your new policy will not cover your old property as it sits vacant, so you will need to take out a separate policy. Home sellers will also need to maintain the utilities at their vacant home for the benefit of potential buyers that want to tour the property.

Seller Concessions

In some cases, to be able to close the sale of your home, you may have to make certain concessions to your buyers. Common seller concessions include covering the cost of a home warranty to sweeten the deal. You may also want to cover the costs of post-inspection repairs for your buyers.

Closing Costs

The average closing costs from selling your home can reach over 10% of your sale price. Most of that price is in the form of agent commissions that can run north of 7%. Sellers will also have to pay a transfer tax or title fee. The cost of the transfer tax will depend on the tax rate of your state and the final selling cost of your home. 

Sellers will also be responsible for title insurance that can range from $1,000 to $5,000. Add your escrow fees and you are in for another $1,000. If you are joining an HOA in your new neighborhood you will have to pay your fees. Sellers that have used the expertise of a real estate lawyer to help them close their sale will have to pay for their fees and retainer costs. 

While most home sellers are more focused on the cost of their new home, it’s important to remember that the process of selling your current home can also be expensive. Consider these costs as you get ready to sell your home and make a plan to cover your selling expenses.