Is your property up for sale or are you thinking about selling it? Selling a property is a big decision to make and most sellers only focus on the price they will get for their former residence. However, when you sell a property, you should also be aware of the costs involved in the home selling process. Below are some of the main expenses you should know about when you sell your home.
Real Estate Agent Commissions
Most homeowners who are selling their property hire a real estate agent so that they can sell their home quickly and for the best price possible. However, this service comes at a cost so you need to be willing to pay a substantial fee to the person or company who sells your home for you. In most instances, a real estate agent will charge approximately 5% of the property sale cost, depending on the agent you deal with.
A moving service can be costly. However, your valuables need to be moved in a safe way by professionals, so it’s vital to hire one of the best moving companies in your local area. This may set you back a few dollars, but you will have the peace of mind of knowing that your furniture, white goods and other household items are reaching their destination in their original condition.
Repairs and Upgrades in Your Home
Over time, a home usually suffers from a lot of wear and tear. Fixing the problems in your home may turn away a large number of potential buyers. If this is the situation, you probably need to take action and carry out the necessary repairs and upgrades yourself. It will cost money, but after the work is completed, you could attract many more people who are interested in buying your home at a higher price.
Legal Obligations and Taxes
When you sell your property to another party, you need to transfer ownership and pay any relevant taxes that are outstanding on the property. The most common fees you need to pay include outstanding property tax, deed and recording fees and deed transfer tax.
The Balance on Your Mortgage
A huge number of property owners still have a mortgage to pay off. You need to be able to pay this outstanding money before you sell your property. Depending on where you live, this can incur various fees, such as penalties for paying off your mortgage early.
Cleaning and General Maintenance
It can take a long time to sell a house. During this time, you need to keep your property in perfect condition to impress any potential buyers who may call around to view it. If you have already moved out of the property, you still need to clean it and keep it well-maintained. It can be costly having to go to the property to regularly clean it or hire a professional cleaning company to do this work.
Selling a house has the potential to make you a lot of money. However, each of the expenses listed above can take a big chunk out of this income, so you should be aware of this before you sell.