The costs of selling your old home
Home Improvement Guide - September 21, 2020
When it comes to the costs of selling your old home there are a lot of things you should consider. It can be quite challenging and time-consuming. Sometimes even expensive. Before you even consider selling your home, you first have to find a home for yourself and your family. Should you choose San Antonio as your new location, you can check on the internet which movers and packers in San Antonio can provide you with their service. In that way, you can choose the moving company that suits your needs and your budget.
Before you move
Before you estimate the costs of selling your old home, you should first consider finding a new one for your family. Or at least a temporary home until you find a buyer and sell it. Then comes the packing. the best way to organize your stuff is to make a checklist. That way you will have an overview of your belongings which will help you to easily sort them out. Also, this is a great way to get rid of things that have been taking your closet space for years. You can sell them on the internet or organize a yard sale. Donate them to a charity organization or recycle them.
After packing, you have to find reliable movers in order to relocate your family and your belongings. In case you have some massive items like a piano you can get in touch with piano movers of Texas that will safely relocate your piano or other valuable items. When choosing a reliable moving company you have to check if the company offers insurance. Which is crucial when it comes to your belongings. That way you will get your money back if your belongings get damaged or stolen.
Costs of selling your old home
The costs of selling your home can depend on various factors.
- Home preparations which can bring up the costs of selling your old home
- Closing costs for sellers as well as their concessions
- Real estate fees such as loan payoff, taxes, and penalties
When it comes to home preparations, it includes the following things such as home improvement, landscaping, cleaning, staging, professional photos, and pre-inspections. Home improvements will add a higher price you can do before listing your home. Those are updates to repair or replace old systems such as roof, furnace windows, etc. The second is upgrades that add features buyers love with the goal of garnering a higher sale price. Your agent should know what buyers in your area are looking for.
Your exterior can boost the costs of selling your old home. Create a nice walkway with a lot of plants and trees. Add some lights to it, and mow the lawn. Before you open your house for potential buyers, you should consider hiring a professional cleaning service to completely sweep your home. Which includes literally everything, floors, carpets, windows, etc.
Staging your home is also very important. You should rearrange the furniture to use the most of your space. The decoration of your home can make a difference. If you don’t have time for this, the average cost nationally to hire a professional stager ranges from $2,300 to $3,200.
After your home is arranged it is time to take photos of your property. We recommend that you hire professional photographers. The price is between $150-$200 depending on the market. It is a small investment which can really pay off. Pre-inspection is optional and can cost between$250- $700 depending on the size of your home.
Closing costs for sellers as well as their concessions
Most of the sellers make some kind of trade-off with the buyer to speed up the sale of their home. The most common concessions for the sellers are post-inspection repairs, home warranty for the buyer, and credits towards closing costs.
It is really rare that an inspection report comes back perfectly! In that case, the buyers request from the sellers to fix up the issues from the inspection report. In many cases, the sellers lower the price so the buyer can do the repairs by themselves. Sometimes the repairs are in fact completed as a part of the deal.
To ensure the trust of their buyers, sellers sometimes cover the cost of a home warranty. For a one year home warranty, you will have to spend between $300-$500, depending on the coverage.
Also, another thing that buyers often require is that the seller’s cover ALL or at least a part of the buyer’s closing costs. That way the buyer brings less cash for the closing. And for the seller, well, this cost comes out of the profit they make on the home on closing.
When it comes to the closing costs of the seller, they range from 8% to 10% of the home’s sale price. Which includes the agent’s commission round 6% of the sale price, and the seller’s fees which range between 2% to 4%. You should also keep in mind, that the costs vary depending on the value of the home and the tax rate where you live. They also include a transfer tax also known as a government transfer tax or title fee. Prorated property taxes where the seller is responsible for the property taxes on your home up until the day of closing. Also HOA fees as well as the attorney fees.
Taxes and loan-payoff costs of selling your old home
After the closing costs are settled there are still a few costs that you should be aware of. If you are still paying mortgage on your home, you will have to pay off the balance of your mortgage as part of the closing process prorated to the date of sale. Capital gains tax is often overlooked until tax time! You should ask your tax professional about this. In the end, the cost of selling your old home can vary from location and size. However, you should be prepared and gain as much information as possible in order to sell your home and make the most of it.