When it is time to sell your house, contacting a realtor may seem like the logical first step. After all, they are professionals who know everything about what it takes to sell a house. But if you think all you have to do is sit back and collect the profit, you may want to re-think your decision! There are a number of costs associated with selling a house, several of which you may not be expecting.
Realty Agents’ Fees
The average real estate agent’s fees in California run between 5% and 6%. This amount is typically divided between the agents representing the buyer and the seller. That may sound like a small amount but when applied to the sale of a $200,000 home, it adds up to a hefty $12,000 that you won’t be getting.
Cost of Repairs/Renovations
You might expect to have to put money into updating your home, especially the kitchen and bathrooms. But those little cracks in the ceiling or near the windows and doors are going to get noticed. You can expect to spend anywhere from a few hundred to several thousand dollars to give your home a needed facelift.
The idea of staging is to help viewers imagine what it would be like to live in the home. The realtor will probably have a professional in mind that they will recommend. The average cost for these services is just under $700.
Making your house more inviting on the outside will increase the number of potential buyers who want to see the inside. It takes more than planting a few flowers. The house may need a new layer of paint if it looks dingy or the paint is peeling. Cracked concrete on the curb or sidewalks may need to be repaired. Fences may need to be cleaned or repaired and the driveway needs to be damage-free. Again, you could be out several thousand dollars depending on the degree of work needed.
Capital Gains Tax
If your home has appreciated a great deal since you purchased it, you may have to pay capital gains taxes for the difference.
The cost of closing is usually around 2% of the sale price of the home. You will also have to pay any outstanding taxes and prorated utilities, along with the balance of your mortgage, during the closing process.
Save Money with Buy Every Home
Instead of letting the unexpected costs of selling a home cut into your profits, contact Buy Every Home to get an offer. We respond within 24 hours and often have your home sold within 14 days. Avoid many of the costs of selling with a realtor by selling your home right now, without investing another dime!
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