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With the demand for homes outpacing inventory in many areas across the country, it’s a sellers’ market. If you’re thinking the time is right to hang a “For Sale” sign in front of your home, consider how much you’ll have to spend to actually sell your home.
According to an analysis by Zillow and Thumbtack, the average U.S. homeowner will spend more than $18,000 in extra costs to sell a home.* You can expect to pay much more or much less, depending on where the home is located and what updates need to be made.
Here are six common “hidden” expenses homeowners should factor into the cost of selling their home.
Unless your strategy includes marketing your home as a for-sale-by-owner deal, your real estate agent’s fee can vary between 4 to 7 percent of the selling price. At 6 percent commission, that’s $12,000 on a home sold for $200,000.
Closing costs, fees and miscellaneous expenses.
Total closing costs may be anywhere from 2 to 4 percent of the final sale price. They can include property taxes, legal fees, homeowners association fees, transfer taxes and title insurance. You may be charged additional brokerage, courier and escrow fees.
These can include painting the home’s exterior and/or interior, cleaning windows, shampooing carpeting, refinishing hardwood flooring or re-landscaping to boost curb appeal. You may need to take care of additional repairs, depending on home inspection results.
Staging your home.
It may be worthwhile to hire a professional stager to showcase your home’s best qualities and downplay any negatives. Services also include decluttering, rearranging furniture and removing personal items. Costs, ranging from the hundreds to thousands, are based on the size of the home, type of work done and how long the house is on the market.
Keeping the lights on.
If you’re planning to move before your home is sold, you’ll need to continue paying for utilities to run water, natural gas and electricity.
Paying off an existing mortgage.
The proceeds you receive from the sale of your home will be calculated after paying off your current mortgage and any home equity liens secured by the property.
Ready to sell. Ready to buy.
Now that your current home is ready to sell, it’s time to buy your next home. Macatawa Bank offers competitive mortgage rates and flexible options to make the purchase quick and easy. Call us today at (877) 820-2265
for more information about a mortgage preapproval.
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* Source: Zillow Research
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