If you’ve made the decision to sell your home, it’s important that you know what costs may or may not be involved. Many of them are commonly known but there are several that most people don’t know exist. We’ve outlined a few of them for you here.
Real Estate Agents
Real Estate agents charge a commission on the sale of the home. This is generally one of the highest costs of the sale of the home. When you enlist the assistance of a Real Estate agent to help you sell your home, the first and one of the biggest steps is the approval of a mortgage. The property needs to appraise for enough to meet the terms of the loan the buyer applied for from the Lender. The buyer’s agent will request that the home be inspected as well. Lastly, you need to consider the closing costs. You are responsible for most of the closing costs when you sell the home.
Repair Costs
Another consideration is the condition of the home. Depending on how old or how the home was maintained you may need to repair the home as well. You may even want to consider getting your own home inspection performed before you decide to sell the home so there are no surprises later. You can decide what you want to fix beforehand and what you will accept to leave as-is. If you rely on the buyer’s inspection, you may be required to make major repairs or updates before the deal is closed. These repairs are an unknown cost and can be much more than you’d think. Be prepared for what you might learn about your home and what repairs you may need to make.
Advertising Costs
Advertising your home to help make the sale is another expensive process. Many times Realtors will hire a professional home photographer to ensure that potential buyers can see the best possible views of your home. You may even need to invest into staging the home so that your home stands out against other homes. These are your responsibility and are not inexpensive. Be sure that you consider these things when you’re working with a selling agent. Discuss budgets that you have to avoid overspending on the sale of your home. No one has the same budget for getting the home ready to sell.
Holding Costs
Something else to consider, depending on your situation, is if you have to hold onto the property in the event that you have to make an unexpected move. You may end up paying on two properties while you go through the process of selling your home. Homes can sit on the open market for a long time depending on what’s going on in your area. You are required to maintain the home while its on the market to be sold. Simple things like yard maintenance can be hard and expensive if you’ve had to move away from the home. The last thing you want is for the sale to fall through without closing on the sale and being left holding onto the property. You should always weigh the pros and cons before making the decision to sell.