When you are thinking about selling your home, your primary thought is probably about how you can potentially make money off the sale. However, it is important to note that there are some costs that you may need to pay for as well. Understanding the potential costs that you might need to pay can help you to better plan and budget for selling your home.
When you are selling your home, one of the main costs you need to account for is the commission that you will pay to your realtor and the buyer’s realtor. This commission doesn’t need to be paid up front and will instead come out of the sale price of the home at the time of closing. Generally this amount is about three percent for your realtor and the same amount for the buyer’s realtor as well. Depending on the cost of your home, that amount can be very significant, but it generally is a fairly easy cost to deal with. It’s just important that you remember that cost when you are planning for the sale of your home.
It’s also important to remember that you have legal obligations when you sell your home. You have to think about capital gains taxes when selling your home. If you are selling your primary home and you don’t make over a certain amount on the sale, you won’t be responsible for capital gains taxes. But if your home sells for an amount above the threshold or it isn’t your primary residence you will be responsible for those taxes.
If you want your home to sell quickly, you will likely need to do some repairs and remodeling before you put your home on the market. You may additionally need to do repairs after the inspection is completed on your home. If you are looking to sell your home as is, you need to understand that that might slow down the sale. The costs of repairs can be kept in check if you are able to do the work yourself. You don’t need to take care of every single problem, but you should negotiate with the buyer to figure out something that works for both of you.
Selling your home does come with certain costs that you have to deal with. However, that doesn’t mean that you won’t get your money’s worth. In the end, you will have the chance to get a good value out of your home if you go about the selling process appropriately.
Check out this article on how to avoid surprises when selling your home!