If you’re thinking about selling your house, one of the biggest questions on your mind is likely: How much will it cost? While the final figure varies depending on factors like the offer you accept, repairs you handle, and potential buyer concessions, understanding common expenses can help you prepare.
Here’s a breakdown of some typical costs associated with selling your home, and how to navigate them wisely.
Closing Costs and Commission Fees
One of the largest expenses when selling your house is paying closing costs and real estate commissions. These fees cover various aspects of the sale, such as taxes, title insurance, and agent commissions.
As U.S. News Real Estate explains:
“Sellers can expect to pay 2% to 4% of the sale price in fees and taxes, plus agent commissions. Based on the median home sale price, closing costs for sellers in 2023 are roughly $7,740 to $15,480.”
Keep in mind that tax rates differ by state, and commission percentages are negotiated upfront. If you've already made payments toward property taxes or escrow, you could receive a credit back at closing, which may offset some of these costs.
Pre-Listing Inspections and Repairs
Many sellers opt for a pre-listing inspection to identify potential issues before putting their home on the market. This proactive step allows you to address repairs early, potentially avoiding buyer requests for concessions or repair credits after their inspection.
However, this step is optional. Your real estate agent can help you determine if a pre-listing inspection is necessary and suggest strategic repairs or cosmetic updates that could improve your home’s appeal, such as fresh paint or minor fixes that offer a solid return on investment.
Home Staging
With growing inventory, staging can help your home stand out to buyers. Home staging involves furnishing or decorating the space to make it more visually appealing, whether with rented furniture for vacant homes or art to brighten rooms. Virtual staging is also an option, especially for listing photos.
According to Bankrate, the average cost of staging can range from $782 to $2,817, depending on the size and scope of the project. If you’d rather skip this cost, your real estate agent can offer guidance on simple adjustments, like decluttering or rearranging furniture to improve your home’s presentation without a full staging.
How Your Agent Can Help You Save
While certain costs like staging or inspections are optional, selling your home without a real estate professional can be risky. A skilled agent brings a wealth of knowledge to the process and can save you money in the long run by:
- Offering expert advice on repairs or updates that will have the most impact.
- Creating a personalized marketing plan to showcase your home’s best features.
- Pricing your home competitively to attract buyers while maximizing profit.
An experienced agent can also guide you in making smart choices about where to invest your money, helping you avoid unnecessary expenses while positioning your home for a successful sale.
Want a clearer picture of what selling your home will cost? Reach out to a local real estate agent to discuss your specific situation and get expert advice on how to navigate the process efficiently.
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