Here’s an overview of the typical costs associated with selling a home. Some of these expenses are negotiable and will fluctuate with the real estate market, but don’t let these costs catch you off guard.
1. Agent Commissions
It’s common for sellers to use the proceeds of the sale to cover the commissions for their listing agent and the commissions for the buyer’s agent. This can total around 6% of the sales price. It’s important to understand where some of your proceeds will be going. Your listing agent is a valuable resource who will help guide you through the entire home selling process from start to finish.
2. Closing Costs
You may not be responsible for all closing costs and many of these fees are negotiable, but it’s smart to prepare. Common closing costs may include sales tax, attorney fees, title transfer fee, unpaid homeowners association dues, prorated property taxes, transfer taxes, title insurance, escrow fee, and closing agent fee. Be sure to check with your mortgage lender to find out if you have a prepayment penalty. Also, if you have a home equity loan or line of credit, you will need to pay it in full at settlement. Closing costs can range from 2 to 4% of the sales price.
3. Staging Costs
These costs can vary depending on where you live, the size of your home, and how many rooms you want to stage. Your home may only need a few minor adjustments like depersonalizing, decluttering and rearranging. If needed, you can choose to rent or buy decor. Barrett Sotheby’s offers free advice on how to stage your home to sell. We will help you figure out the best way to stage your home so that prospective buyers can imagine themselves living there.
4. Home Repairs
Your home inspection may reveal some serious issues and costly repairs. You may or may not have to fix them; but if you don’t, buyers will expect a discount or credit. Some sellers choose to get a home inspection before listing their home. This is not required, but it’s a great way to find out about any structural or mechanical problems so you can make any major repairs ahead of time. Barrett Sotheby’s offers complimentary advice on any minor repairs that will make your home more attractive to buyers.
5. Moving Expenses
When you sell your home, you’re also moving! The average cost to move a three bedroom home within 100 miles is between $560 and $1,000. Larger homes, long distance moves, large items, packing, and storage can increase these costs. If you’re not immediately moving into your next home, you’ll also need to budget for rental and storage fees.
If you’re looking to sell your home in the Boston area, contact Barrett Sotheby’s International Realty today. We can help you arrange the sale of your home with these costs in mind.