Between prepping the house, real estate agent’s commissions, and closing expenses, the cost of selling a home can easily get to 10% of your home’s sale price. Learn more here!

So, you’re ready to sell your home and are wondering, what’s the cost of selling a home? Some sellers may not realize the expenses they’ll incur in a home sale until it hits them at the closing table. But that won’t be you! We’ll guide you through the cost of selling a home so that you can make the most out of your real estate transaction. Keep reading!

Preparing the House for Sale

Unless you’re planning to sell your home as is, you’ll need to spend some money to get the house market-ready to attract qualified buyers and competitive offers. You’ll want to invest in a few basic pre-listing improvements to maximize your home value. These improvements can include updating bathrooms and kitchens, landscaping the yard, replacing flooring or carpet, redecorating, and exterior painting.

Home Staging

When potential buyers see your house, you want them to focus on the property’s best features while visualizing living in it. That’s where home staging comes in. Staging entails arranging décor and furniture to make a house as visually appealing to buyers as possible. Typically, the average cost to hire a professional stager ranges between $2,300 and $3,200. The good news is that staging can pay off when you’re ready to sell. An NAR report has shown that staging can increase your home value by 1% to 10%. 

Real Estate Agents Commissions

The standard real estate commission is 6% of your home’s sale price (split between your agent and the buyer’s agent) - but the commission is negotiable! But is it worth paying for an agent? Yes! A real estate agent will help prep your home for buyers and provide you with a true and tried marketing strategy to sell your home on your timeline. Besides, they’ll earn you the big bucks by offering muscle at the negotiating table. In fact, a study has shown that an agent will help you sell your home for 22% more than when you sell on your own.

Utilities

Even if you’re planning to move out before selling the house, you’ll want to continue paying for energy and water. A house without air conditioning, lighting or heat can be challenging to show buyers and could even damage the property. Your current bills can give you an idea of how much it’ll cost every month to leave on the utilities until the new buyer moves in. But, note that since you won’t be living there, your usage may be down. 

Closing Costs

Closing costs are a blanket of terms for the many expenses and fees paid at the close of a real estate transaction. You can expect to pay about 2.54% of your home’s final selling price at closing. But depending on your circumstances, you can negotiate for the buyer to pay some of them. Examples of closing costs you can expect to pay include:

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  Property Taxes. You’ll have to pay prorated property taxes, depending on when you sell your home and where you live. Typically, if you have already paid taxes for the year, you might actually get a rebate at closing. The buyers will often reimburse you for the portion of taxes already paid that apply after the closing date. 

  
  


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  Transfer Taxes: Depending on where you live, you might need to pay real estate transfer taxes (a tax charged by the local government on transferring the ownership). Typically, transfer tax amounts to a percentage of the sale price (often less than 1 percent).

  
  


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  Buyer Incentives. These can help you secure a sale by making it more appealing for a buyer to purchase your home. You can offer to pay part of the buyer’s closing costs or repair credits.

  
  


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  Mortgage Payoffs: If you have mortgage balance, you may have to use the proceeds of your home sale to pay off the mortgage. 

  
  


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  Home Warranty: The last thing a new homeowner wants is to purchase a new refrigerator or fix the furnace, so having a warranty can offer them peace of mind when completing the homebuying transaction. A 1-year buyer’s home warranty may cost between $350 and $600. 

  
  

Ready to Sell Your Home?

If you’re ready to put the calculator down and start the selling process, get the ball rolling with a skilled real estate agent. Reach out to us, and let’s get started. Our experienced real estate agents will do more than market your home and negotiate with buyers. We have the necessary local knowledge to understand what buyers are looking for in a home and maximize your profits. Call us today, and let’s help you sell your home for the best price possible!