Don't Get Conned: 5 Hidden Costs of Selling a Home

Posted by Casandra Properties on Monday, June 15th, 2020 at 9:09am.

Selling your home is a stressful time. You're trying to figure out the market value of your property so you can price your home right. You're dealing with real estate agents. You're hosting open houses.

There's just a lot going on that it's easy to get things befuddled. One important part of selling a house that you need to stay on top of though is the costs of selling a home.

That's right — there are some significant costs associated with selling any property. To help you keep them straight during this stressful time, we've listed five such hidden costs associated with selling a home in this article.

Hidden Costs of Selling a Home

1. Real Estate Agent Commission

The first cost to be aware of are the real estate agent commission involved. These commissions may be as high as 3% per agent. That results in a total cost of 6% of the final closing price of your home.

If you don't want to use a real estate agent to sell your home, then you should check out a cash-for-houses scheme. If you're looking for the answer to the question, "what is the fastest way to sell my house?" then a cash-for-houses scheme is the answer you need.

2. Listing Fees

The next fee that you need to keep in mind is listing fees. Certain real estate marketplaces may charge fees for you to list your property on them. These fees may be flat fees or they may be a percentage of the sale price. Know what the fee is and when and how it is paid before you list your property anywhere.

3. Property Improvement

If you're looking to sell your home in as-is condition, then you may not get as many buyers as you'd hope. Consequently, the decreased competition will probably result in your home being sold under its property value.

To avoid that, you'll have to spend some money doing property improvement. You'll need to pay contractors to fix any obvious issues in your home (such as problems with the plumbing or electrical systems) and spruce up curb appeal with better landscaping.

4. Taxes

Depending on the state and region that you are in, the sale of your home may be subject to significant taxation. The tax rate can vary drastically depending on your location, so be sure to check on local real estate ordinances to see how much you're going to be paying.

5. Escrow Fees

Once you've found a buyer and agreed on a price, then the closing process begins. During the closing process, the money for the house is typically kept in escrow where neither the buyer nor the seller can touch it until the sale is finalized.

An escrow platform may charge a flat or percentage-based fee for their service.

Know the Costs of Selling a Home

There you have it. Now that you know the costs of selling a home, you should be far better equipped to budget accordingly during this stressful time.

For more real estate advice, be sure to check out the rest of the website!

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