Getting ready to sell your home? If so, please read below to better understand the costs that can be associated with selling your home.
PREPARING YOUR HOME FOR SALE
Preparing to put your house on the market is very similar to preparing to sell a vehicle. When someone gets ready to sell or trade in a vehicle, often times they get that vehicle professionally detailed or they will thoroughly clean it themselves so that it sparkles and shines. Some may go even further and get the car waxed and serviced. After all, they want to get top-dollar for their vehicle and if it looks like it is clean and has been well taken care of, they are likely to sell the vehicle for a higher price. Selling your home is no different. When you are preparing your home for sale, it is wise to make sure that it is clean and looks well taken care of. Here are some common costs that you may uncover when preparing your home for sale:
•Consider hiring a lawn service to keep the yard cut – especially if you will be moving away prior to or during the time that your house will be on the market.
•You may need to apply a fresh coat of paint to the interior and/or exterior of the home.
•You may need to stain your fence.
•It is often times a good idea to weed and mulch the flowerbeds. This could be relatively inexpensive if you complete the work yourself.
•Window Cleaning is a good idea. Again, this could cost you absolutely nothing if you can complete this yourself. However, if you have a two-story house with very high windows, you may want to hire a professional company to perform the work.
•Power wash the driveway if it is stained with oil or if it is really dirty. If you have a power washer, then you are in luck. If not, you may need to hire someone.
•Hire a professional company to shampoo your carpets.
•Staging may also be something worth considering. Some real estate agents will offer complimentary staging advice to their clients. However if you are moving away from your home while it is being put on the market, you may want to consider hiring a staging company to bring in their own furniture and stage your house to help is sell quickly. This is an expense that can be upwards of $300-$400 per month depending on the size of the house and the amount of furniture needed. It would be a good idea to consult with your real estate agent regarding the local market and whether or not they would recommend staging for your home.
Once you are under contract, during the option period your buyer will most likely hire a third party inspector to come and inspect your home. Soon after, it is likely that you will hear back from the buyer about the inspection and they may send you a list of repairs that they are asking for you to complete prior to closing. Because they are still in their option period, they have the right to back out of the contract if you cannot come to an agreement. It is wise to be prepared to spend some money on repairing items that the inspector has listed as deficient or agreeing to contribute a certain amount of money, in lieu of repairs, at the closing table.
Sellers will commonly pay the following at closing:
•Mortgage balance and prepayment penalties, if applicable
•Other liens against your property, such as unpaid property taxes
•Unpaid Special Assessments on your property
•Document stamps (or taxes) on the deed
•Real Estate Commissions (Both Buyer’s Agent and your Listing Agent) – Typically a total of 6% of the sales price
•Title Insurance Premium – Click Here to View the Rate Chart
•Survey (if a new one is needed) – $400 and up
•Buyer’s 1 year home warranty – $375 and up
Your real estate agent should be able to give you an estimated seller’s net sheet before placing your home on the market so that you have a good idea of what you should expect to pay at closing.
The most common moving expenses that you should be aware of are: hiring a moving company to move your belongings to your new home and hiring make-ready house cleaners to thoroughly clean the home once you have moved out. However both of these could be done yourself without hiring anyone depending on your specific situation.