Preparing your house for sale is a vital step to take, but it is also essential to plan for the costs of selling a house. Many people are not familiar with all the costs of selling a home. As a result, they end up spending more to sell a house than they had planned to spend. If you want to prepare for this event financially, it might help to know the costs of selling a house. Here are the main costs you should plan for as you get ready to list your property.
Costs to Get Your Home Ready
One cost that you might not think about is the money needed to get your home ready to sell. As you look around your property, what work do you think your home needs? Some people hire painting contractors to paint the home's interior or exterior before listing it. Other people hire carpet cleaning companies to clean the carpets or HVAC companies to clean the furnaces. It often takes spending some money to get a home ready, and you should plan for these expenses. The good news is that you might sell the home faster if you spend the effort in getting it ready.
The Commission You Pay
The most significant expense you will have when selling it is the commission. You can shop around for a lower commission, but you will still pay around 5% for it unless you sell your house by owner. Paying a 5% commission costs $5,000 per every $100,000. If you list and sell your house for $200,000, this amounts to a $10,000 commission.
The Costs for Closing on the House
As the seller, you will have some expenses to close on the house. For example, you must pay the prorated property taxes on your home. This amount comes directly out of the proceeds you receive from the sale. You might also be responsible for paying some of the inspection service fees or anything else you agree to pay. Your real estate agent can provide a breakdown of your expenses if you have questions.
When you add up all these things, you can get an idea of how much money you must spend to sell your house. Knowing your total expenses can help you determine how much profit you will walk away with after closing on the property. If you have questions about selling your home, talk to a real estate agent.