While you might understand that it costs money to buy a home, you may not understand that it also takes money to sell a home. Believe it or not, there are many expenses along the way during the home selling process. There are fees and other expenses that can really add up.
So, how much does it cost to sell a home? Well, that all depends on a variety of factors. Take a look at the content below to learn how much it actually costs to sell a house.
How Much Does it Cost to Sell a Home?
The overall price to sell a house includes expenses such as closing costs and charges related to home selling preparation. You might also have to pay to move your belongings and provide concessions for the buyer.
Closing costs include about 6% commission for your agent. Plus, there’s an extra 2% to 4% in transfer taxes, attorney fees, property taxes, and real estate fees. The most common types of fees you’ll incur are HOA transfer fees, title insurance expenses, and escrow costs.
Here’s a list of the standard things you’ll have to pay for:
- Leaving the home
- Seller concessions
- Home preparation
- Closing costs
- Loan payoff taxes and penalties
Unfortunately, many of these fees are unavoidable and must be paid.
The Standard Home Selling Costs
There are some home selling fees that you may not be able to avoid. Here are some of the main costs you can expect during the home selling process:
Real Estate Commission
If you use a realtor, you really can’t avoid paying this fee. Usually, 5% to 6% of the sales price go to your real estate agent. Let’s say they sell your home for $300,000. In that case, you can expect to pay about $18,000 in commission.
Unless your house is in tip-top condition, you’re going to have to pay to repair parts of it. If there’s a leaky faucet, shingles missing from the roof, or any other repairs needed, you’ll have to fix those.
More than likely, the new buyer won’t accept your offer until you do so.
You’ll have to pay for someone to inspect your home. Generally, it costs about $400. This step is essential to making sure that everything is in good condition, and no major repairs are needed.
If you want to avoid the traditional method of selling your home, consider selling it to cash home buyers.
The Cost to Sell a Home
As you can see, home selling fees can add up really quickly, especially if you have a lot of work to do on your house. But thankfully, if you invest in your home and do things the right way, you can make a profit.
Even earning a small profit from your home is better than losing money.
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