Selling a home in a tough housing market can be a challenging task. When considering selling your house, it’s crucial to understand the various costs involved in the process. While the sale price of your property is essential, there are other factors to consider before putting up a “for sale” sign.
One significant expense when selling a house is agent fees. Typically, sellers are responsible for paying commissions to both the listing agent and the buyer’s agent. Real estate commissions typically range from 5% to 6% of the home’s sale price. On a $400,000 home, this would amount to $20,000 to $24,000. However, commission rates can vary depending on the location. Real estate commissions in Georgia average 5.76%, while Massachusetts averages 4.85%.
Another cost to consider is pre-sale home repairs. Many homes, especially older ones, require repairs before listing to attract buyers. On average, sellers spend around $14,163 on pre-sale home repairs. This cost can vary based on the property’s age, condition, and other factors.
Staging your home is not a requirement but can help sell your property faster and for a higher price. According to the National Association of Realtors, staging your home can increase the dollar value offered by 1% to 5% compared to similar unstaged homes on the market. On average, staging costs range from $800 to $2,800, depending on the number of rooms staged and the duration of the listing.
Sellers also need to consider closing costs, which typically range from 1% to 3% of the home’s sale price. These costs include attorney’s fees, transfer taxes, title insurance fees, recording fees, and property taxes. For a $400,000 house, closing costs can amount to $4,000 to $12,000.
Moving expenses are another consideration. The average cost of a professional local move is $7,600, while a professional long-distance move averages $9,140. It’s crucial to obtain binding estimates to ensure accurate pricing. Additionally, don’t forget about tips for the movers, which typically range from $5 to $10 per worker per hour.
Other costs that sellers may encounter include mortgage payoff if there is a balance remaining on the mortgage, capital gains taxes if the property exceeds certain exemptions, and seller concessions if agreed upon to cover the buyer’s closing costs.
Selling a house involves various expenses that should be carefully considered. Understanding these costs will help you make informed decisions and plan accordingly during the selling process.
– National Association of Realtors: 2023 Profile of Home Staging
– Clever survey of real estate agents
– Realtor.com data
– Home Bay survey
– Angi.com (formerly Angie’s List)
– Consumer Affairs