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The Costs of Selling a Home Can Add Up — Don ’ t Let Them Surprise You , or Your Budget .
While the primary goal of selling a home is usually to make money , there are costs of selling a home , too . Many of the costs of selling a home depend on how much you sell it for — and that depends on what it ’ s worth . Here ’ s a breakdown of the major costs , including the tax implications of selling a home , so you can figure out how much you ’ ll need , and if you ’ re ready to sell your home .
Repairs : Your goal is to make your home as appealing as possible to buyers , so make sure that an off-kilter cabinet door doesn ’ t make them wonder what else might be wrong . The amount of this investment varies by home , but you ’ ll want your place to be as free of chips , scratches and dents as possible , and that all of its systems and appliances are in working order .
Upgrades : The best return on your home improvement investment is for small , attention-grabbing things , like fresh paint , updated flooring and new cabinet hardware . Big upgrades , like a kitchen or bathroom overhaul , will impress buyers and help your home sell faster , but you ’ re likely to spend more than you ’ ll recover when you sell . A knowledgeable real estate agent would be a great source of information about what upgrades might help your home sell quickly .
Staging and cleaning : Cleaning and staging a house makes it look like a showroom — and helps buyers envision themselves in the space . You can DIY these things , but they do take considerable time and effort . If you hire professional cleaners , you can expect to spend between $ 200 and $ 400 for a deep clean , depending on the size of your home . Staging , which is essentially arranging your furniture and other belongings in an inviting way , can be a considerable investment . A consultation may cost between $ 300 and $ 600 , and a three-month contract could cost up to $ 7,000 or more .
Storage or housing overlap costs : A well-staged house doesn ’ t have any extra stuff in it . All of your attic and basement boxes , extra clothes , personal items and a lot of your furniture will need to go . If you ’ re still living in your home , that could mean you need a storage unit . You can expect to pay around $ 50 to $ 200 a month for a storage unit depending on its size and where you live . If you ’ ve already moved into your next home , you won ’ t have to worry about a storage unit , but you will have two sets of housing bills , including your mortgage payments , utility bills , home insurance and property taxes .
Post-inspection repairs and other concessions : The buyer will have your home inspected , and based on the findings , they may ask you to make some fixes around the house , give them a break on the sale price , or ask you to cover some of their closing costs ( up to 6 % of the total cost of the home , depending on the buyer ’ s financing terms ). In some markets , experts recommend that a seller hire an
A member of the franchise system of BHH Affiliates , LLC . inspector to examine the home before it ’ s listed to make sure there are no surprises . That could be $ 400 to $ 600 .
Seller closing costs : Sellers often pay 1 % to 3 % of the total sale price of the home in closing costs , which can include :
• Prorated property taxes and HOA fees
• Municipal inspection requirements where applicable ( dye test , camera video sewer , occupancy permits )
• Attorney fees and / or closing company fees
• Escrow fees , often $ 100- $ 200
• Title transfer tax ( rates vary by municipality in PA )
Real estate commissions : Sellers are normally responsible for paying the real estate commissions for both their real estate agent and the buyer ’ s agent at closing . This is typically between 5 % and 6 % of the home ’ s sale price .
Mortgage payoff : You ’ ll use a portion of the sale proceeds to pay off the remaining mortgage balance on the house you ’ ve sold . Some mortgages , although not very common , include prepayment fees for paying off your mortgage early .
One-year home warranty : In the Pittsburgh market it ’ s common for sellers to purchase a one-year home warranty for the buyers , to cover any major fixes the home may end up needing . The rates for home warranties vary widely by house and location , but most sellers can expect to pay between $ 400 and $ 700 .
I hope you find this info helpful .
FOR A FREE REAL ESTATE MARKET ANALYSIS , BUYER ’ S CONSULTATION , OR GROUP SEMINAR , PLEASE CONTACT DARLENE B . KRUTH TODAY AT 412.831.0100 X3013 ( OFFICE ), 412.874.0415 ( CELL ), OR VIA EMAIL AT DKRUTH @ TPRSOLD . COM .
WEST JEFFERSON HILLS ❘ WINTER 2020 31