There are many expensive costs associated with selling a home. These costs can quickly add up and drastically reduce the amount of money you receive at closing.
Knowing what these costs are upfront will help you avoid any unexpected expenses and will also help you plan for potentially minimizing or eliminating some of these costs.
We’ve created an infographic to help describe some of these frequent costs you might encounter when selling a home.
Real Estate Commissions:
Typically you can expect to pay anywhere from 5% to 8% in commissions to real estate agents when you sell your home. Nowadays there are alternative methods to sell your home that can cost less. Be sure to explore these prior to entering into an agreement with a real estate agent!
Unpaid Property Taxes:
Even if you are up to date in paying all of your property tax bills, you may still owe property taxes at closing. Property taxes are usually paid at the end of the period for which they are owed. Because of this, you will usually reimburse the buyer for the prorated portion of the tax period that you owned the house for.
Some municipalities also charge a transfer tax when you sell your property. Think of this cost as a ‘sales tax’ for your home. This cost is often paid for by the seller. The cost of transfer taxes is usually anywhere from 0.01% to 2% of the sale price.
Buyer’s Title Insurance:
Sellers will often have to pay for an insurance policy for the buyer which covers any issues that may arise if there is an issue with the home’s ownership history. This policy typically costs around $500 to $1,000 and is paid for by the seller.
Government Recording Charges:
Often times your local government will charge a fee to record the record of the sale. This fee is often around ~$250.
If your buyer’s home inspector finds any material defects with the condition of your home, then your buyer may request that you make repairs for those items or request a sales price concession in the amount of the cost of the repair.
Sometimes buyer’s will request that the seller purchases a home warranty that would cover most of the repair cost of major systems or appliances in the home. The cost of this is around $300-$500.
Staged homes tend to sell faster and for more money than homes that are not professionally staged. If you opt to do this, the cost is usually around $500-$3000.
There are a few costs that are not listed here due to brevity. Please leave a comment if you have any questions on any of these!
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<strong>Please include attribution to SHP Properties with this graphic.</strong> <a href="https://sellmynjhousefast.com/wp-content/uploads/2017/06/common-costs-when-selling-a-house.jpg"><img class="aligncenter size-full wp-image-576" src="https://sellmynjhousefast.com/wp-content/uploads/2017/06/common-costs-when-selling-a-house.jpg" alt="Common Costs When Selling a House Infographic" width="800" height="2900" /></a>