The truth is selling your house is a big step and we want you to be prepared for what to expect during the home selling process.  If you want to get the most money for your home, it’s important to start with a deep clean, a full declutter and staging with furniture.  However, it is important to understand that there will always be costs associated with selling your home as well. Here are the costs typically associated with selling your home:

Pre-Inspections are optional for sellers.  It can be advantageous to spend the money on an inspector before putting your house on the market to find things, through a neutral party, that need to be fixed. There may be things you may not know about or things you haven’t noticed (that potential buyers will) that should be fixed before listing your house.  This also helps avoid frustrations when the buyer does their inspection and asks for expensive repairs.

Home Repairs can help you get the most money for the sale of your home, but it will be money out of your pocket at the onset. If your home has any issues you must legally disclose them in the selling process so it’s best to have any problems fixed by a licensed contractor before selling your home (be sure to keep receipts).

Staging is arranging furniture in an aesthetically pleasing way, to show your home in it’s best light. Staging can be especially important if you have already moved out of the property and it is empty; sellers can choose to hire a professional stager to bring furniture and accessories in to make the property look more appealing.  According to The Mortgage Reports, houses that are staged sell 73% faster!

Attorney (In Attorney states)  If you live in an attorney state like Illinois, you will need to hire a real estate attorney to represent you in the sale of your home.  They help with contracts, HOA paperwork, clearing up any title issues and communicating with the buyer’s attorney.  They also help with all paperwork associated at the closing of your property.

Real Estate Agents often charge 5-6% commission and split this with the buyer’s agent.  This commission includes all marketing, farming for buyers, professional photographer, paperwork, technology expenses, knowledge and most importantly negotiating skills.  For sale by owner homes (FSBO) historically make less than those that are represented by an agent.

Closing Fees for Seller can run 2-5% of the price of the home and can include some of the following fees:

 Outstanding Property Taxes

 Escrow company

Home appraisal

Recording & transfer of property

Title company & title insurance

Title Insurance will be required by lenders and/or new homeowners in order to protect them if the legal ownership of the home is called into question.  If there are undiscovered liens on the title or another person claims they have ownership rights, title insurance covers the legal expenses that could come about.

Capital Gains Tax will be levied if you make $250,000  selling as an individual and $500,000 married filing jointly on the sale of your home and are not rolling it into another property.  You may be exempt if you have lived in the home as your primary residence for over 2 years (some states 5 years).

Professional Movers can be a big expense. If you are moving locally, try to find local movers and get a few different quotes.  If you are moving across the country and have furniture and a lot of items, you will most likely need professional movers, again get a few quotes and look at your options.  Make sure they will insure your possessions and have a good reputation.

Please reach out to us if you have any questions related to the selling of your home.  We are here to help and want to make sure that you have a good experience selling your home and moving into the next phase of your life!

By: Carrie Ernst

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