Selling a home is an exciting time. While most people make a nice profit on the sale of their home, there are some selling costs to consider when calculating your gains.
When you’re selling a house with a mortgage, there will always be some payoff fees and miscellaneous administration fees to be mindful of.
You’ll also likely need to do some repairs, cleaning, and staging if you’ve already moved out. You may want to budget some money to get the house ready to show.
From repairs to closing fees, here’s a round-up of some of the basic costs you’ll see when it comes time to sell.
What Are Selling Costs in Real Estate?
Getting your house ready to sell isn’t always as easy as calling a realtor and listing it for sale.
A home may need some cleaning, minor repairs, or some bigger ticket items to help it sell. In addition to repairs made prior to a sale, closing costs and commissions are other standard fees that you can almost always expect to pay at the closing table.
Selling costs are the price of all of these items totaled together. This is the cost of selling your home, and you’ll need to budget for these when you go to sell and potentially look at buying your next home.
The selling costs on a home are typically 2%-7% of the home’s purchase price. A seller should expect to pay 1%-3% of the cost according to Realtor.com.
Most of the mortgage companies out there will allow the seller to pay the buyer’s closing costs. In a seller’s market, however, you may not need to do this.
Real Estate Agent Commission
A good portion of the selling cost will come from a real estate agent commission. This is their fee for helping you source a buyer and carry the sale of your home over to the closing table.
The standard real estate commission for a broker is 6% of the final sale price of the home. The seller’s agent will then split this commission with the home buyers agent.
Real estate agents work really hard to sell your home. So while the 3% is well-earned, just remember this figure when looking at your potential profits.
Fixing up Expenses on Sale of Home
Some homes need a little tender love and care before they can hit the market. As a seller, you may need to pay a contractor for a few projects that need finishing.
You might also need to spend a little money re-painting a neutral color or giving your house a new, fresh look.
These are all home repair expenses that you’ll want to budget for when selling your home.
Staging is another important contributor to selling your home. If you’ve already moved out and your house is empty, staging may help people visualize themselves in your home.
Staging doesn’t have to be expensive but even a little bit can go a long way in selling your home.
Typical Closing Costs For a Seller in Florida
While closing on a house may seem expensive and confusing, a realtor and attorney will walk you through every step of the process.
Some selling costs are paid well before you close while others are paid after the transaction is complete.
Home repairs, home cleaning, and the inspection costs are all things you’ll pay for before the closing. These are all paid out of pocket while closing fees, title fees, and commissions are paid once you finally close on a home.
All of these costs should be factored into your potential profit so you aren’t surprised at closing time.
If you’re concerned about closing costs or need information on how to sell your home, get started here to start talking with a professional.