How Much Does It Costs to Sell Your Home

Townsend Asset Management Corp |
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Estate Planning
Real Estate
Property

Do you really know how much it will cost you to sell your home?  Here is a breakdown of some of those costs.

Agent Commission

While everyone who has ever sold a home is aware of the cost of their listing agent, many people never sit down to figure out exactly what their real estate agent is owed when their house sells. For instance, if you currently owe $200,000 on your mortgage, and your home sells for $220,000, the profit on the home is $20,000. But factoring in the 6 percent commission owed to your agent, your actual profit will be $6,800 after the real estate agent is paid, keeping in mind that your agent is paid on the selling price of the home.

Closing Costs

While homeowners are not always on the look for closing costs, if the market is slow, agreeing to pay some if not all of the closing costs can be a strong incentive to potential buyers. You may also have to pay pro-rated property taxes, escrow expenses, and other fees, depending on when your home is sold.

Maintenance and Repairs

If your home requires no extensive maintenance and repairs prior to being listed, you are one of the lucky ones. But for most people, in order to get an offer as close to the selling price as possible, here are a few things that need to be taken care of:

  • Carpet Cleaning – Your carpeting may be old, but it doesn’t have to be dirty. Spend the money on getting your carpet cleaned throughout the house. The $200.00 to $300.00 will be worth it.
  • Painting – Interior painting can liven up a drab interior while exterior painting can make a home stand out for the right reasons. Painting can run anywhere from $500.00 and up, depending on the number of rooms and if exterior painting is necessary.
  • Landscaping – Nobody likes weeds. Overgrown weeds or grass can drive potential buyers away from your door without them ever setting foot in the house. Hire someone to clean up weeds, remove loose or fallen tree limbs, and keep the lawn neatly mowed. The cost should be around $200 to $300 and worth every penny.
  • Professional House Cleaning – This should be done prior to the new owner taking possession of the house. Once everything is moved out, getting professional cleaners in ensures that the home will be sparkling clean for the new owners. This should run around $150 to $300, depending on the size of the home.

For those that have already moved out, keep in mind that you’ll need to keep the utilities turned on until the home is sold, and they can be transferred to the new owner. If your home is completely empty, you may also want to consider ‘staging,’ which can add to the attractiveness of the home, and has been proven to help sell a home faster.  Staging costs start at around $1,200 to $1,500, depending on the length of time that the furniture is needed.

While there can be other fees assessed when selling a home, preparing for these expenses can help you and your real estate agent list your house at the appropriate price.

This material has been prepared by a third party that is unaffiliated with Townsend Asset Management Corp. and  is provided for informational purposes only. Townsend considers this third-party source and information to be reliable, but its accuracy and completeness cannot be guaranteed.  It may not represent the views of Townsend or its affiliates. It should not be considered a recommendation to purchase or sell any particular security. Past performance should not be relied on as an indicator of future results. All investing assumes a certain degree of risk, including loss of principal. Townsend has obtained permission to distribute this material. Townsend Asset Management Corp. is an independent  investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about the firm can be found in its Form            ADV Part 2, which is available upon request. TAM-23-28