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By Ruby Frazier
The True Cost of Selling a House (What’s Your Net?)
S
o, you have decided to sell your home to either upgrade, move, or start your next adventure as a backpacker. For whatever reason, a lot goes into selling a home. Naturally, you are wondering how much it will cost you. and you are right to worry! It is easy to get carried away with what you stand to make from the sale, and you might be caught unawares at closing with all the costs. Remember that from these proceeds, you will have to cover the costs of the transaction. But that doesn’t have to be you. Here are some of the expenses you have to factor into your budget as you plan to sell your home. WWW.THEPOWERISNOW.COM
1. MORTGAGE PAY-OFF. If you financed your home using a mortgage, paying off the mortgage balance for your home should be included in your expenses. Usually, the payoff for your mortgage is made from part of the proceeds you make from the sale of your home. Therefore, the payoff amount is likely to be lower than what you actually owe, and it might be a good idea to add the prorated interest you’ve accrued to the total balance. Additionally, you might have to pay a prepayment penalty for your mortgage if it exists. To be safe, check your loan documents or contact your current lender to see whether your mortgage has such a condition. 2. PRE-SALE HOME-INSPECTION In most cases, the buyer pays for a home inspection to avoid buying a defect-ridden home. While that might be the case, it is always a good idea to budget one as well. It will help you identify problems in the house, allowing you to fix them ahead of the sale. A home inspection runs between $280-$400 and could uncover problems with plumbing, electrical, HVAC, the roof, and even the foundation. By identifying and fixing the issues, the closing process will not be delayed, and your home value may ever so slightly improve. l
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