Managing the Costs of Selling Your Home
By Justin Weinger
If you haven't sold a home before, you might be surprised by how much it can cost you. Of course, you will most likely recoup those costs on the sale, but in the meantime, you need to prepare up front to shell out some money. Let's take a look at what some of those costs might be and how to manage them.
Secure the Funds
If it is a surprise that you will have to deal with some upfront costs, you may need to figure out where that money is going to come from. While there are various ways of raising money, such as selling some items or getting a second job, in a situation like this, your best upfront is probably to take out a personal loan. You can find one that offers terms that work for your budget. As long as your credit is reasonably good, you should be eligible to take out enough to cover at least some of your costs.
Repairs and Renovations
There are basically two types of fixes your home may need. One is major repairs, such as to the roof or plumbing. While normally a buyer pays for an inspection, you may want to do so early to avoid any unpleasant last-minute surprises. You can then get those big -ticket items fixed before moving ahead with the sale. The other type of fix is small and relatively inexpensive renovations that can make a big difference. This might mean sprucing up a room by painting the walls or replacing the carpet. It could also be something as small as painting the trim in one room. While these are things that are easily done by the buyer, buyers don't always see past these cosmetic issues to the potential of your home, and neglecting them can mean losing the sale.Commission
Around 6% of your home's price will be split between your agent and the buyer's agent. If you are wondering whether it is worth hiring a real estate agent, the answer is absolutely. Despite the commission fee, your real estate agent can actually save you a lot of money and a lot of headaches. They will be able to answer any questions you have, from how much does it cost to sell a house to what cosmetic changes will be the most appealing to buyers, and more. Real estate agents know how to market your home and know what needs to be done to make the process as painless as possible for you.
Other Costs
You will need to pay some closing costs, and you may need to agree with the buyer to take on some additional costs as well. Other potential costs include capital gains tax and property tax, although you may be exempt from these. In the case of property tax, you could even get a rebate depending on when you last made a payment. Finally, don't forget to account for moving costs as well.What to Read Next
