As you embark on your home selling journey, you may be wondering: How much does it really cost to sell a house? You should know that the costs that come with selling a home can add up. While some home selling costs are obvious, there are other fees and expenses that may take you by surprise.
Here are the common costs to expect when selling a home:
Home repairs
Repairs and improvements can make all the difference when it comes to selling a home. Making the necessary repairs before putting your home on the market boosts its value and justifies a higher asking price.
Inspect your house and take note of what is broken, worn out, or defective. This will help you determine which repairs are a priority and how much you will be spending on them.
Among the most common problems that you need to look out for are:
- Broken glass in the windows
- Leaky faucets
- Stained carpeting
- Holes or cracks in the walls
- Malfunctioning HVAC systems
Home staging
Staging is an important part of the home selling process because it transforms your home and highlights its best features. Proper staging gives potential buyers the opportunity to see your home at its best and helps them visualize the life they can have in it.
Home staging involves arranging the furniture and the decor to improve its overall look and feel. It also includes repainting the walls with a neutral color, decluttering, depersonalizing, and adding more light.
While staging can cost anywhere from $950 to as high as $3,000, the National Association of Realtors (NAR) reported that staged homes have an increased sales price of up to 20%. The Real Estate Staging Association also noted that 75% of sellers who had their homes staged saw a 5% to 15% return on investment over the asking price.
Real estate agent commission fees
The commission fees for both the buyer’s agent and the seller’s agent is typically shouldered by the seller. This amount can be 5% to 6% of the home’s purchase price.
Although the real estate agent commission fees are one of the biggest costs of selling a home, an agent’s service often more than not, pays for itself. There’s a lot that goes into selling a home. Your real estate agent’s services make the selling process a smoother and easier one. Preparing the home for sale, pricing the home right, and marketing the home to potential buyers are just some crucial tasks that they do to ensure home selling success.
Closing costs
Closing a real estate transaction and transferring the ownership of your home also has its fees. Closing costs can take up around 1% to 3% of the home’s purchase price.
- Title insurance
To protect the lender and your home’s new owner from any property losses or damages, the lender and buyer will request a title search. A title search is conducted to verify property ownership and make sure that no one else has a claim to the property. The seller usually obtains the title insurance policy for the buyer.
Title insurance is a one-time payment and usually costs around 0.5% to 1% of the purchase price.
- Property taxes
- Transfer tax
- Other closing costs
Sellers can also help buyers through certain concessions. Also known as seller assists or contributions, sellers can offer to lighten the buyer’s financial load and make the home more affordable.
Property taxes are one of these seller concessions. The property tax rate depends on the location and when the transaction was closed. In Florida, the property tax rate is 0.98%.
In Florida, it is customary for the seller to pay for the transfer tax. Referred to as Documentary Stamps or “Doc Stamps,” this is a tax on the transfer of property ownership or title. Communities in Miami-Dade County have a transfer tax rate of 60 cents per $100 while those outside of Miami-Dade County are at 70 cents per $100.
There are some closing costs that may also be split between you and the buyer such as escrow fees. These fees are paid to the escrow company, title company or attorney to cover the paperwork and other real estate transaction fees. Other closing costs may include capital gains tax, mortgage payoff, attorney fees, and HOA fees.
Navigate the home selling process with your Ibis real estate market experts, The Telchin Group. The number one real estate team for homes in The Club in Ibis, The Telchin Group is dedicated to guiding clients through every step of selling a home. Get in touch with us today at 561.301.0249 or send an email to Eric(at)TheTelchinGroup(dotted)com.