Often, when you think about what you’ll make from selling your home, you think mortgage payoff subtracted from the sale price. However, there are other expenses you will need to consider when selling your home. Here is a brief list of the primary expenses that you need to be aware of.
- Home Prep: Prior to putting your home up for sale, you’ll want to be sure it looks its best. That may mean some landscaping, repairs, and/or face lift efforts like painting or new carpet. Some of this you can do (depending on your handyman skills), and some you’ll need to hire contractors for. Either way, this will cost money, but done properly, will equate to you getting more for your home.
- Services and Fees: After you’ve finished getting your home ready to list, you then need to consider the fees of marketing and selling. Depending on who you use as your real estate agent will depend on what you will need to spend on marketing. You’ll want professional pictures and videos taken, and you’ll want your home marketed online on sites beyond the typical real estate sites (i.e., Zillow, brokerage sites, etc.). I pay for and facilitate those services for my clients, but not all agents do. Once you accept an offer, you need to anticipate your estimated closing costs. The type of costs that are included in this bucket called “closing costs” vary, but they usually include the commission paid to your brokerage (they pay the buyer’s agent out of their commission), and sale prep fees such as deed stamp and administrative fees.
- Post Sale Costs: After the sale, you need to also anticipate the costs of getting you to your next home. Are you moving out of state? Then you’ll need to calculate the costs of all the logistics of getting you there, such as packing, moving and temporary lodging.
Selling a home (and buying a new one), is a project, and a good real estate agent (… ahem…) will also wear the hat of a good project manager for you. This is something to ask about when talking to prospective agents. The link below is a good article that goes into a bit more detail. Have you had any experience selling a home where you had unanticipated costs? Chime in below and share your voice of experience!