Hidden Costs Home Sellers Face
If you are a homeowner and are thinking of selling your property, there are certain things you need to take into consideration. These include a variety hidden costs that many home sellers do not know or forget about. Selling a home may cost much more than you think, and you should be always prepared for additional expenses when you decide to list your property. On average, this can add up to anywhere from $10,000 to over $40,000, depending on certain factors.
Real Estate Agent Commission
Commission of a real estate agent is the largest expense home sellers face when selling their homes. Even though the commission is negotiable, most realtors charge a commission of 6%. This means that if your home’s price is $300,000, you will have to pay $18,000 to a realtor.
Those home sellers who want to make their home more attractive for potential buyers usually hire a professional stager or decorator, who will help declutter, reorganize, or completely furnish the empty house after the homeowners moved their stuff out. Their mission is to improve the chances of selling a home and maximize the sale price. It usually costs a few hundred dollars.
Closing costs can add up to about 2% of the home’s sale price. They usually include transfer taxes, notary and escrow fees, and mortgage processing. Fortunately, there are ways to save on closing costs. First, you can hire an experienced real estate attorney or provide your own copy of the policy, which will allow you to avoid the reissue fee for the title search. It will help you save up to $200.
In most cases, homeowners have to make fixes and repairs before listing their properties. They can either undertake the repairs themselves or hire contractors. Sometimes, it is possible to discuss the list of repairs with potential home buyers and offer them a price break to cover the cost of the required repairs. The most expensive repairs that you may need to be prepared for include deck repair, mold removal, foundation repairs, roof repair and replacement, HVAC repair, and water heater repair.
There are thousands of options today to advertise a property and get it in front of potential buyers. However, most of these options cost money. Internet advertising remains the most targeted, cost-effective, and highly visible method of advertising because most home buyers search for properties online.
Capital Gains Tax
You should not worry about this if you make less than $250,000 on your home sale (or less than $500,000 if you are a married couple who is filing jointly). However, if you earn more than that, you may owe capital gains tax on your profit. If you are not sure, it is recommended to consult an experienced accountant on the current tax regulations.
Sell Your Home to a Home Investor to Avoid Hidden Costs
Selling a home the traditional way may be expensive and may include certain hidden fees. If you want to avoid them, there is another way of selling your property that many home sellers do not know about: selling it to a home investor or cash buyer. Home investors are those who buy properties for cash and as is, meaning that homeowners do not need to spend money on repairs and renovations. Moreover, there are no expenses such as real estate agent’s commissions, closing costs, advertising costs, and others. The process of selling a property to a cash buyer is easy, fast, and absolutely transparent.
If you are interested in this method and you own a home in Colorado Springs that you want to sell as quickly as possible without wasting your money on hidden costs, Purple Mountain Holdings is ready to help you. We are a team of experienced professionals based in Colorado Springs who buy all types of properties, in any location and under any circumstances. If you want to get more information, feel free to visit our website or give us a call.