The True Cost of Selling Your Home
Selling your home in a competitive market can be complex, especially for inexperienced sellers. A little information can help sellers manage the cost of selling your home. Here is some basic information concerning the costs associated with selling your home.
When Selling Your Home, Consider a Pre-Sale Inspection
No one likes surprises! The buyer will order a home inspection to ensure the home is in good repair and ready for occupation. Should that inspection uncover unexpected repairs, it is likely to put a serious hurt on the bottom line. Unless your home is very new, scheduling a home inspection will uncover problems with building systems and structure. What you do with the information is up to you, but at least you will know.
Selling Your Home, Make the Necessary Repairs
Part of managing the cost of selling your home is knowing the difference between desired improvements and necessary repairs. It is the difference between replacing the carpet in great condition because you always intended to install hardwoods and replacing stained or worn carpet in key living areas. Use the information gained by your home inspection to determine which repairs are necessary.
System repairs, such as plumbing, electrical, or HVAC system repairs should be completed before the house goes on the market. If you do not make these necessary repairs, the buyer will make them at your expense. You will pay for them via credits required by savvy buyers. Deferring these repairs to the buyer may cost a sale if the buyer deems the repairs overwhelming.
Preparing for Selling Your Home
Buyers are more interested in envisioning how THEY will use the space than seeing how YOU used the space. There will be a careful balance between decluttering/depersonalizing and keeping enough furniture to demonstrate the size of spaces. If you are in the process of moving before the house goes on the market, this will be simplified. Consider hiring a professional cleaning contractor to deep clean your home in preparation for showing. The same type of preparation may extend outdoors; a little bit of landscaping might benefit the sales process. Don’t forget to schedule lawn care if you are not available to mow.
Home Staging When Selling Your Home
If you are managing the costs associated with selling your home, staging might seem a frivolous expense. However, there are some reasons to seriously consider staging your home.
- When a home is vacant, empty spaces leave buyers unexcited and cold.
- When you have made significant changes in the home décor (room additions, wall/flooring colors) and your furniture is inadequate for the space.
- When you expect the price you desire will require special décor and furnishings.
Closing Costs
- Check with local government agencies that might charge a document transfer tax, usually a percentage of the sale price
- Title fees—the administrative costs of a real estate transaction. Sellers often purchase an insurance policy protecting the new homeowner.
- Escrow Fees—a lot of money changes hands during a real estate transaction; money from the buyer’s bank to the seller’s bank, as well as funds for taxes, and insurance. This amount varies with each purchase.
- Realtor Commissions—the largest fee is usually the realtor commission, typically between 5 and 7% of the listing price. Buyers and sellers split the commission, but this can be negotiated.
Capital Gains Tax
Real estate capital gain is the profit received from the sale of real property. The first $250,000 of profit is exempt for single sellers, and $500,000 for married owners. The percentage of tax will depend upon your income.
Have questions about Selling Your Home?
With over 5 decades of experience in the Houston Housing Market, The Matthews Team can help you make decisions about Selling Your Home. If you have any questions, give us a call at 281-440-7900 or send us an email. We’re happy to help!
