Financial Tips

Costs to Selling a Home

While most people think about the profit they’d like to make when selling their home, there will be some expenses as well.

If you choose to work with a real estate agent, your biggest cost will likely be their commission, which ranges from 5 to 6 percent of the selling price, although that could be negotiable.

Other costs can come before the home even sells. They can include getting the inside or outside in shape with new paint, some remodeling, or some landscaping to enhance curb appeal.

Another possible cost could include staging the home, where some decluttering and rearranging are done, or when temporary furniture is brought in prior to showing the home.

Additional costs might arise after a pre-sale home inspection and any problems are found.

There are likely to be some closing costs and fees you’ll need to pay as well. These include any property taxes and homeowner association fees that might be due, as well as transfer taxes and title insurance.

Some sellers even offer to purchase a home warranty for the buyer, and some buyers might request help paying a portion of their closing costs.

Once the home is sold, a portion of the money will likely go to paying off the remainder of the mortgage and some will need to be set aside for moving costs.

Knowing that there will be expenses involved, homeowners will need to figure that into their budget to make sure the money is available when they need it.

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