You’re finally ready to sell your house and embark on a new adventure, and you’re probably thinking, “How much are the costs of selling a home?” Some sellers don’t realize how time consuming and expensive it is to sell their property until it’s too late. Here, we’ll show you the average costs and tips for selling your home.
The cost of staging a house for sale
DIY: $400 | Professional stager: $2,300 to $3,200
When potential buyers view your house, you want to draw their attention to your home’s best features. You also want them to envision themselves living in your space. This is where home staging plays a vital role. Home staging is the practice of making the home visually appealing to buyers by focusing their attention on the dwelling’s most desirable features.
In 2019, the National Association of Realtors (NAR) reported that 28% of sellers’ agents staged their homes before listing at a cost of around $400. A professional stager, on the other hand, may charge anywhere from $2,300 to $3,200. The report added that a staged home ups the value of a home anywhere from 1% to 5%.
Real estate agent commission fees
5-6% of the sale price
The realtor’s commission is usually the most substantial amount a seller pays, costing 5-6% of the sale price. Say you’re selling your house for $250,000, you’ll pay your agent $15,000 in commission. This amount is split between the real estate agents of both the buyer and seller.
You can also negotiate for a lower commission. Realtors are more likely to agree to a lower commission rate if the home is likely to sell quickly, the real estate market is strong, or the home price is high.
To avoid paying commission fees, many homeowners choose to list their home as for-sale-by-owner (FSBO). However, selecting the FSBO route will mean assuming the role of a real estate agent, including knowing the ins and outs of home selling, being on top of voluminous paperwork, and doing a substantial amount of legwork.
The cost of a home inspection
Starts at $400
While a home inspection is optional, it’s worth the $400 it normally costs. Sellers who opt for a presale home inspection hope to uncover issues in the house that may affect the asking price of their home.
Getting a home inspection gives you time to make significant repairs, avoiding the possibility of a buyer demanding them or asking for a lower selling price.
The cost of repairs or improvements
The cost of doing home repairs depends on whether you have to do major work or a minor fix. If your house is in pristine condition, you won’t have to worry about spending anything. However, must-fix issues include:
- Structural defects
- Building code violations
- Safety issues
The cost hiring a professional real estate photographer
Averages from $150-$300
Close to 70% of homebuyers say that viewing professionally-taken pictures of a property is important to them. You may need to spend $150-$300 for a photographer, but the payoff can be significant. You can also ask the help of your agent as they may cover the expense for you.
The cost of utilities
Most homes sellers retain their utilities for showings and open houses. Don’t forget to cut your utilities on the day you vacate the property to avoid unnecessary costs.
Closing costs and miscellaneous fees
2% to 4% of the sale price
Closing costs are usually the buyer’s responsibility. However, don’t be surprised if you’re asked to foot the bill, especially if you’re selling in a buyer’s market.
You should expect some other fees like property taxes, homeowners’ association fees, attorney’s fees, title insurance fees, and transfer taxes. Altogether, closing costs can amount to 2% to 4% of the home’s sale price.
The cost of paying off your mortgage balance
Prorated to the date of sale
Part of the closing process includes paying off the balance on your mortgage, prorated to the sale date. You’ll need to check with your lender for a prepayment penalty, if any.
The cost of moving out
$600 to $1,700
Set aside from $600 to $1,700 for moving expenses, depending on whether you’re renting a moving truck or hiring a professional moving company.
Need more tips to sell your home fast and home selling advice? Get in touch with professional Connecticut Realtors, Kathy Danais and Lisa Gordon. We have been helping people achieve their home-selling goals for over 30 years. Let’s get started today! Call us at 860.214.1295 or 860.805.7722 or send an email to kathydanais(at)gmail(dotted)com or lgordonrealtor(at)gmail(dotted)com.