How Much Will it Cost To Sell My Home?
There are many factors involved when discussing the costs to sell your home…costs that will also include maintenance, repairs, and that awesome (or dreaded) moving day. We’ve broken things down for you and included costs that you may not think of…
These costs are the hard costs involved with selling your home. The fees, taxes and more fees. A good estimate here would be 8.5% of home purchase price:
$200,000 home x 8.5% = $17,000
- Professional Service Fees
- State transfer taxes
- Title insurance (to make sure buyer is getting a clear title)
- Real estate taxes paid to day of close
- Misc. recording and service fees
It is a fact: The nicer your home looks, the faster it will sell – and often for a higher price.
- Are repairs and maintenance up to date?
- Are your paint touchups done?
- Have you decluttered?
- Is your home clean (I’m talking girl clean, not guy clean)?
- Is your home staged?
If you answered no to any of these, then add those costs in as well.
Home Inspection Costs
Most buyers are going to get a home inspection. It makes sense for them to have an independent 3rd party look the home over for them…so they know what they are buying.
And even though you have gone over every inch of your home, 9 times out of 10, they will find something that needs fixing and ask you to do it. More than likely, it will be small things…but budget for some repair costs here.
Another common inspection “big ticket” item is radon. If the buyer has a radon test performed and the level comes in too high, they may ask you to install a radon mitigation system in your home to relieve the radon gas. Those can range from $1,200 to $1,800. Unfortunately, if you don’t fix it, it will have to be disclosed. So the next buyer will ask for the same thing…
Appraisal Requirements Buyer Financing Costs
Many loans (FHA, VA, RD and SDHA) have requirements for home quality. And in our area, that’s a large percentage of buyers….Appraisers are required to make sure the home is:
- Structurally sound
So IF your buyer is getting one of these types of loans…you will need to make repairs that the appraiser calls for on your home for the bank to allow the buyer to close. These culprits are gonna get pinged:
- Roof – old, warping shingles
- Broken (cracked) windows
- Peeling exterior paint or bare exterior wood on siding, facia, window trim, etc.
- Rotted exterior wood (decks may be OK if they are still safe)
- Gutter downspouts extending away from home
- Garage door openers need photosensing “eyes” along bottom of garage door
- Sheetrock on garage wall next to home wall for fire protection
These really aren’t optional – and if you wait until the appraiser calls for these repairs, you may delay your closing time. If you refuse to do them, then the bank won’t lend money to the buyer and you aren’t going to sell your home.
If your home has these issues, get ’em fixed!
Are you hiring a moving company? Figure that cost into your estimates.
Moving yourself? Don’t forget about the hiring of the truck, the gas to get where you are going, and the beer and pizzas needed to feed the flock of people you’ve got to help.
Moving to another part of town? This is where it gets fun. You might need to rent a storage unit to put some stuff in and pay for a hotel room (or crash with relatives). You will have to be OUT of your home before the buyer can close on your home…and then YOU can close on your NEW home. You may be homeless for 24 hours or more!
When it comes time to close on the sale of your home, your current mortgage will need to be paid off (the title company will take care of this for you.)
Your payoff amount is NOT the balance due on your loan. Your payoff amount is the balance due, plus interest since your last payment, plus any fees your mortgage company charges (anything from prepayment penalty to processing fees).
We try our best to make the home selling transition as smooth of a transaction as possible. But there is only so much we can control.
There is a lot of waiting and wondering and waiting some more. If Yoga calms you down and gives you some peace….add it to the budget!
A little work on the front end – taking care of appraisal issues, expecting to make some inspection repairs – can go a LONG way in the ease and lack of stress in your homeselling experience. Don’t hesitate to call us…we’re here to help…