It’s always better to be prepared for the costs ahead of you so you can budget properly. Selling your home is no exception. Though the point is to be able to make money before moving on to your next home, selling is itself quite an investment, and there may be costs that you weren’t aware of beforehand. Here are a few that you’ll want to keep in mind.
Repairs and Updates
Are your appliances outdated and, well, quirky? Do you need to make repairs to your home’s roof, electrical wiring, or flooring before you put it on the market? These repairs and updates will help increase your home’s value on the housing market, but the costs can rack up, so you’ll need to be prepared for them.
It’s not just the inside of your home that matters. Curb appeal is crucial when it comes to making a good first impression on prospective buyers. If you’ve neglected your lawn in the past few months, now is the time to invest in landscaping. Even if you typically do a good job of keeping the lawn mowed and raking up any leaves, landscaping can help to take your curb appeal to the next level.
Closing on the home sale itself has costs, usually about 2-5% of the sale price of the home itself. Escrow fees are split between the buyer and seller, property taxes, and HOA fees may all come into play. In some cases, sellers might cover closing costs for the buyer if they desperately want to close on the sale. However, most sellers will refuse to do so and in most cases, your realtor will advise against it.
Realtor Commission and Attorney’s Fees
Once the sale is finalized, you’ll owe your realtor a percentage of the sale as commission. This percentage is typically agreed upon beforehand, so this isn’t a cost that’s likely to sneak up on you. It’s for this reason that some sellers consider skipping realtors altogether, but the realtor’s housing market and local expertise can be invaluable when it comes to selling your home. You may also hire a real estate attorney to help mediate the closing, and in this case, you’ll have to cover their attorney’s fees, as well.
Need help managing the costs and knowing what’s the best investment when it comes to selling your home? Talk to one of our realtors in Santa Rosa Beach FL or Tallahassee FL for more information on getting the most out of your home sale.