One of the things that often catches first-time sellers of homes off guard is just how expensive the process can be. In fact, one report by Thumbtack and Zillow shows that homeowners across the country spend an average of $15,190 to offload a house. The problem here is that a part of that number is often made up of “hidden” costs, some of which tend to sneak up on you when you’re finally about to close
Listed below are a few “hidden” costs you can prepare for should you plan on selling your home in the near future.
Real Estate Commissions
The realtor’s commission will likely be the largest fee you’ll have to pay at closing. This is normally based on a percentage of your selling price—on average, around 5 to 6 percent. Based on a median home value $196,500, this would translate to a commission of $11,790.
It’s reasonable to think that this is a pretty hefty price to pay just to sell off a property. As such, you may, like many other homeowners, opt to go for-sale-by-owner (FSBO). Doing so means taking on all the responsibilities of a real estate agent, including finding prospective buyers, showing them the property, negotiating prices, and getting a lawyer to prepare the contract among others.
Home Staging Costs
Part of selling a home is making sure it’s presentable to prospective buyers. It’s a good idea to hire a professional home stager, whose job is to enhance your home’s features and give buyers a mental image of what life could be like for them in your home.
The cost of hiring a home staging services largely depends on several factors unique to each home, including property size, the scale of the work that needs to be done, and what kind of staging the client wants. The average cost of professional staging stands at around $1,800.
Note that interior painting is a cost of its own and could set you back by an average of $1,700 if done professionally.
Home Repairs and Optional Home Inspection
Making a home sellable isn’t just about appearances, however, as buyers are likely going to look at the functional side of the property. If you need to repair things like leaking pipes and gutters, broken door hinges, or smashed windows, expect to resolve these first before you can sell your home at your asking price.
Home repairs would also include general maintenance like laying on a fresh coat of paint and enhancing the exterior and landscape of a property. It’s hard to estimate how much it will cost to repair things in your home, which is why it’s a good idea to get a home inspection of your own, which may cost around $315.
Closing Costs and Other Fees
In most situations, the buyer covers the closing costs of selling a home. But if you’re selling property in a buyer’s market, it’s not unlikely for buyers to ask you to shoulder closing costs in exchange for agreeing to your asking price.
These costs can include property taxes, transfer taxes, attorney fees, a brokerage fee, and even homeowners association fees. You may expect closing costs to set you back by an amount around 2 to 4 percent of the property’s selling price.
Don’t have the time or budget for these costs? You can always sell your home to a property investor like Blue Hen Homebuyers. We buy all kinds of homes, regardless of their age or condition. Call our offices today at 910-802-2222 to learn more about how we can help you.