Don’t Let Yourself Be Blindsided by Unexpected Costs of Selling Your Home
You’re putting your house on the market and the idea is to MAKE money, not spend it. But there are costs involved when selling a home that you might not anticipate. Don’t let yourself be blindsided by these unexpected expenses:
- Utilities: Keeping your utilities running until closing is a good idea. Not only does it allow the Realtor to show that the home is fully operational, it also helps prevent other possible issues. For example, during hot, summer months having the A/C on will help to keep the home mold-free. And of course, you want the utilities on for the buyer’s final walk through. Your Realtor can help you decide when it is the right day to have the utilities turned off.
- Renovations & Repairs: Before putting your home on the market, you need to budget for any renovations and/or repairs that will need to be done. Walls looking drab? They will need a fresh coat of paint. Stains on the carpet? You’ll want to give it a good steam cleaning. There may be a lot of little things that need to be done, or there might be one or two major projects. Either way, you’ll want to be prepared for the costs involved. Before getting started, do your homework and find out which home improvements get the best return on investment. 6 Home Renovations That Return the Most at Resale
- Seller Credits to Buyer: If you don’t want to deal with repairs or renovations, it is possible to extend a seller credit to the buyer to compensate for the cost of fixing up the house. These credits are a loan option that allows buyers to finance their closing costs and, thus, purchase the home with less cash down. But be aware that lenders cap the credit amount that a seller can extend to a buyer at 3% to 6% of the total mortgage.
- Staging Costs: When your house is on the market, you want it to get as much exposure to potential buyers as possible. You will need to not only stage your home, but digital staging services will be needed as well. Great pictures and/or videos and descriptions of your home online are one of the most efficient ways to reach potential buyers. You may need to hire a professional home stager as well as someone to take care of the digital staging services. Costs to do this can range from a couple of hundred dollars to $5,000 or more, depending on what you request. Sellers: The Benefits of Staging Your Home
- Agent Commissions: Realtors are paid on commission. They usually get 5 to 6 percent of the home’s sale price. Generally, commission is split between the seller’s agent and the buyer’s agent. The home seller typically pays the commission fee, and therefore should take that into consideration when determining the asking price.
- Moving Costs: Make sure you include moving expenses in your budget when selling your house. Hopefully you will get your asking price and make a nice profit on your home sale, but you should be prepared to cover your moving costs even if the house sells for less than you hope.
So, if you are planning to put your house on the market in 2019, now is the time to start planning for the extra costs involved. An experienced Realtor like Desi Sowers can assist you in figuring out the right asking price for your home to help cover all your expenses. If you are thinking about buying and/or selling a home in the New River Valley area, contact Desi today at 540-320-1328 and let her assist you with all your real estate needs!