The True cost of selling a house (What’s your net?), by Ruby Frazier.

By Ruby Frazier

The True Cost of Selling a House (What’s Your Net?)

So, 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.

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.

3. POST-INSPECTION REPAIRS.

The costs that arise here are from the pre-sale home inspection. You might wait for a buyer to request a seller’s concession to cover the costs after they get their results, or they might ask you to fix the problems before closing. Major repairs average anywhere between $4,000- $18,500. While it might be easier to negotiate with the buyer about the repairs, you will cover the costs either way if the buyer agrees to cover the costs if you go below the list price or when you cover them yourselves.

4. HOME STAGING.

How your home appears before you sell could determine how much you get for it. The idea behind staging a home is to make it appealing to buyers that they will have difficulty saying no to it. Staging a home costs between $450- $1,800, which includes hiring a staging company, ordering a cleaning service, renting furniture, installing brighter lighting, updating appliances, and giving your home that fresh coat of paint. Depending on how well a job you do, you will have outstanding offers and faster timelines.

5. REAL ESTATE AGENT’S COMMISSION.

The real estate commission is most times the biggest expense a seller incurs. Usually, it is 5 percent to 6 percent of the sale price. If therefore, your home sells for $250,000, you may end up paying $15,000 in commissions. This commission is split between the seller’s real estate agent and the buyer’s real estate agent. Meaning they could each get $7,500. The expense is almost always paid by the seller, according to NAR.

6. CLOSING COSTS.

As the name suggests, closing costs refer to expenses and fees for services that help close the sale deal. Realtor.com estimates that sellers pay around 1 to 3 percent of the home’s sale price in closing costs. It mostly includes attorney fees, title insurance, title transfer, and taxes. And in case you want to sweeten the deal for buyers, you can offer to cover the buyer’s closing fees as well—this is called a seller concession.

7. MOVING COSTS.

Home sale costs do not end when you clear closing costs. You still have to cover the costs of moving your stuff from home. These costs can range between $600-$1700.

Yes, these costs can add up and be overwhelming. However, there are a few things you can do to cut some of them up. You, for example, can handle some of the repairs by yourself. Be careful not to overestimate your skill sets though that might cost you in the end. You can also opt to sell your home yourself by listing your home as forsale-by-owner (FSBO). If you take this route, be prepared to take agent roles such as showing the house, drawing the contract, and taking care of the transfer title. Also, homes sold as FSBO sell at a lower rate compared to those with real estate agents. Finally, click on www.thepowerisnow,com, to find experienced and qualified real estate agents who will make selling your home less of a headache.

ABOUT RUBY FRAZIER

Ruby Frazier is the President and CEO of Frazier Group Realty Inc., a full-service real estate company with a dynamic team. Frazier Group Realty is located in the heart of Downtown Riverside, California, servicing the Inland Empire, Orange, and Los Angeles counties. Focusing on residential and commercial real estate as well as property management. Ruby has been in the real estate industry for over 13 years. As a highly versatile, results-oriented real estate sales professional with extensive experience in residential and corporate real estate, including industrial, multifamily, and property management, Ruby believes in delivering high-quality customer service. You can reach Ruby directly on her Phone Number:(951) 2029075 Email: rubyfrazier@fraziergrouprealty.com As you look to buy your next home, get yourself a preapproval from our very own Eric Lawrence Frazier, MBA, at 800-261-1634 ext. 703.

ABOUT THE POWER IS NOW MEDIA

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www. thepowerisnow.com.

Works Cited.

https://www.bankrate.com/real-estate/how-much-does-it-cost-to-sellhouse/#:~:text=The%20real%20estate%20commission%20is,agent%20and%20 the%20buyer’s%20agent. https://www.ramseysolutions.com/real-estate/how-much-does-it-cost-to-sell-a-house https://www.aarp.org/money/budgeting-saving/info-2021/the-real-costs-of-sellinga-home.html