Owning a home and selling it can be profitable if market conditions are good and you have the right marketing to get buyers’ attention.
However, there are some costs associated when selling your home that all homeowners should know about before they list.
So, how much does it cost to sell a home, and what type of expenses should you plan for when you’re ready to make a move? Read on to learn more about the costs associated before you put your home on the market.
Real Estate Agent Commission
One of the largest costs associated with selling your home is the commission you’ll need to pay to your seller’s agent. In most locations, the real estate agent will get a commission of anywhere from five to six percent of the total sales price.
Some agents offer low commission deals to get your business, but most will expect to get the full percentage they’re allowed to under the law. You can opt to sell your home yourself, but it will likely take longer unless you’re in a hot market when you list.
Selling a home on your own requires a lot of work, effort, and time. However, you’ll be able to cut out the commission fee, which means there will be more money in your pocket at the end of the day.
If home prices are high in your area, you might be able to negotiate the amount of commission with your Realtor. Keep in mind that your agent is there to help you market the property and work with buyers to get the best deal possible. They’ll do all of the legwork for you, which is well worth it if you live a busy lifestyle.
You might be able to sell your home for cash, which is another viable way to keep more of the profit. Check out this resource on selling your home for cash to learn more before you decide if it’s the right option for you.
How Much Does it Cost to Sell a Home? Don’t Forget Repairs
Aside from the real estate agent commission, you might have to shell out some cash to make repairs on your home. If your house is older or has some issues, it’s best to correct and address the problems before putting your home on the market.
Buyers will hire a home inspector to take a closer look at your home before they make an offer. In some cases, they may refuse to sign a contract until major issues are addressed.
If your roof needs urgent repair or major systems in the house need attention, it’s best to go ahead and make those repairs in advance. You can always hire your own professional inspector before you list just to make sure that the most important things are in good condition already.
Some sellers would rather wait to make repairs until the home is under contract. Keep in mind that this can delay the closing, which also means you’ll lose money while you wait.
Many homeowners want their property to look as beautiful as possible so that it entices buyers to make an offer. If you’re ready to sell a home, consider hiring a professional staging company to make the house look immaculate.
Stagers will make suggestions about how each room should look before you list. If you’re moving out before you sell, they’ll be able to decorate and add furniture using their own items so give the house a lived-in look.
Staging is not a necessity if you’re thinking about how to sell a home. However, many sellers find that a house that has been professionally staged attracts more buyers and tends to bring in a higher asking price.
Cut the clutter and keep your home as clean as possible if you decide not to use a staging service. This is the best way to give potential buyers an idea of what the home would look like if they were to live there one day. If you decide to use a staging service, prepare to pay between $500 to $2,000 or even more, depending on the size of your home and the current market.
So, how much does it cost to sell a home when all is said and done? The answer really varies, but don’t forget a few other common costs associated with a home sale.
You’ll need to continue to pay for utilities until the home sells, even if you don’t live there any longer. There will also be costs associated with the local property taxes that you will be expected to pay until the title is transferred to the new owner.
Talk to your agent about the closing costs associated with selling a home. Some of these costs include homeowner’s association fees (when applicable), septic or well inspections, transfer fees, attorney’s fees, and courier fees. In many cases, the buyer is responsible for a large part of the closing costs, but there are always a few that sellers will need to pay for, too.
Sell Your Home for Profit
When you ask, how much does it cost to sell a home, consider these major costs before you list your home on the market. With a qualified agent and some help, you can make a decent profit and get a nice return on your hard work and investment.
For more information about buying or selling property in Oakville and the surrounding areas, be sure to visit our website and contact us today.