Selling your home may be the only thing stopping you from moving to a new place or getting out from under a large mortgage payment that you cannot afford. While the thought of selling your home can be attractive, it also comes with some costs. Understanding all of the expenses that come with this process can help you know if you can afford to sell.
Real Estate Commissions
One of the largest expenses that comes with selling your house is the real estate commission. This is the amount of money that you have to pay a real estate agent if you hire one to help sell your house. When you work with a traditional real estate agent and give him an exclusive listing, you can expect to pay around 6 percent for a commission.
On top of paying the commission that comes with your real estate agent, you also have to pay some closing costs. The closing costs include items like a title search, title insurance and a home inspection. During this process, you may have to split the closing costs with the buyer, or the buyer could request you to pay all of the closing costs for her. This could be a substantial expense that comes directly out of the purchase price of the house.
When you list your property for sale, you may feel inclined to perform some repairs on the property first. If you sell during a competitive real estate market, you have to make sure that your property is up to the level of other houses on the market. Depending on what shape your house is in before the repairs, you may be able to get by with only a few hundred dollars invested, or you might have to invest thousands of dollars.
If you successfully sell your house, you will then have to worry about moving out of it and into a new place to live. The amount of money that it costs to move can vary significantly depending on how much you have to move and how you choose to do it. For instance, you could rent a trailer and move everything yourself. You could also hire a moving company to handle all of your belongings for you.
In some instances, people know that they’ll be leaving only for a year or two perhaps while they pursue a graduate degree or take on a specific project at work. Sometimes the would-be seller simply can’t sell at a price deemed acceptable, so he or she chooses to hang on until the market picks up. Or, if property values are rising, an owner may want to wait to be able to ask for a higher price later.
Call the Dean Thornton Team today to help you sell or purchase your next home! Dean@RREA.com / 281.288.2500