Beware of These Hidden Costs When Selling a Home
Author: Mlive | February 4, 2020
Hidden Costs of Selling Your Home
Many who decide to sell their homes mistakenly think that the process is all profit and no spending. But with so many steps involved in listing a home on the market, sellers need to take accurate account of the not-so-obvious costs they might accrue. Here, Get Movin Realty explains some of the hidden costs of selling a home, which you might need to front when you begin the process.
A Host of Potential Fees
As a seller, you likely want nothing more than for your home to be purchased, allowing you to start focusing on your new one. But take it from us – the cost of selling a house is nothing to ignore. On average, the total paid by sellers in the United States is $21,000. But by fully preparing yourself for the following potential fees, you can forego stress and worry:
The magnitude of this first hidden fee hinges on where you live. Depending on your zip code, you’ll pay a different state or transfer fee amount. For example, sellers living in a major Californian city might be required to pay nearly double the national average, whereas sellers living in Texas will likely be required to pay less.
Though you may be moved out, letting your old home sit idly can hurt its sale. To entice buyers, you’ll need to repair those broken fixtures, make sure each room is spotless, and have your house thoroughly inspected. And don’t forget to keep those utilities going – you won’t want buyers fumbling around a dark, cold house when they’re deciding whether to purchase it.
Finally, although they’re optional, staging and photo shoots can help buyers picture themselves living in your home like no other method. That’s why we include a professional photo shoot in our comprehensive service package and offer guidance on how to stage your home for the best results.
Comprised of real estate agent commissions, local transfer taxes, and sometimes title insurance and attorney fees, closing costs make up the single largest home sale expense. To break it down further, you’ll not only be paying a commission for your real estate agent but the buyer’s agent as well. And if you live in a state that requires an attorney to be present during your sale, you’ll need to pay for their services, too.
Until a sale is finalized, you need to keep your former home insured in case of an emergency. But be sure to check your policy terms. If it doesn’t apply to vacant homes, ask your provider about paying a rider, which is an add-on that can keep your old home covered during its vacancy period.
Capital Gains Tax
If you make over $250,000 on your home sale, or $500,000 if you are married and file your taxes jointly, you might be required to pay a 15% capital gains tax. There are several exemptions that sellers can qualify for to avoid this tax, so be sure to speak with a tax professional to see if you meet this criterion.
Save with Get Movin Realty
You’ve seen how the hidden costs of selling a home can add up, but don’t worry – we can help you save. At Get Movin Realty in Grand Rapids, Michigan, we save each of our clients an average of $6,500 on their sales expenses. See how much we can help you save by contacting us and registering for an account today.