Home selling is a huge financial transaction and you have to prepare your pocket for expenses that seem unnecessary but are actually indispensable for you to seal a deal immediately.
Most home sellers are really after the revenue. As a result, they tend to abandon the process and forgot about the expenses allied in home selling. Others also get puzzled when they need to spend for what they so-called hidden charges.
Don’t get surprised by the fact that you need to shell out cash. It’s normal. Now, the big question is how much?
Home prices vary. Laws and customs work differently in each state. Generally, these are where portions of your money will go when selling your house.
Most home sellers, especially first-timers, opt to hire a professional real estate agent to do the legwork. Of course, this isn’t free. You have to pay the guy who has done the heavyweight tasks in order for your house to sell fast. And typically, it would cost 5% to 6% of the total home’s sale. That’s huge.
However, the good news is you can still negotiate down the price since competition is high for estate agents.
Moreover, you are not compelled to hire a professional agent so you could save you a lot. But this will demand your time and effort to accomplish tasks that supposedly his responsibilities.
Or, you can deal with a cash home buyer to buy your house as-is. The choice is yours.
If you’re a member of a homeowner’s association, you are required to pay for the HOA fees. But if you already prepaid your obligation, it’s possible that you’ll get a rebate at the closing.
The transfer of property title could also cost you 0.01% to 2% of the total home sale. Moreover, you can also be charged with capital gains taxes if you earn profit from the sale. On the flip side, if your profit is less than $250,000 for single and $500, 000 for married couples, you will be free from government levy.
You would also pay $300 to $500 if you want to get a home warranty. This warranty secures your home repair and replacement and this is one good way attract more prospects to sell your house fast.
The warranty is renewable yearly for additional fees.
Title insurance is under buyer’s responsibility but there are cases that sellers are obligated to pay for it.
The insurance protects buyers if there are home title issues and ownership problems, which will cost you around $500 to $1000.
Closing costs, which is the sum of the appraisal cost, mortgage fee, and other professional services, can cut 2% to 5% of the home’s sale.
This is actually a buyer’s obligation but during buyer’s market, some sellers take the responsibility for a seamless and sweet deal.
Prepare yourself for these fees before you sell your house so won’t get surprised of the additional charges that might drain your pocket.
Do your research and ask someone who has sold a house. Learn from their regrets, failures, and success stories. Doing so will help you save more and leave ample money on the table.
But, if you want to avoid these fees, you can contact The Home Buyers.
We Buy Houses for Cash, Hassle- Free and no Hidden Fees
We know how hard it is to sell a house but it is more difficult when you have to pay double just to sell it. It’s really disappointing.
Send us your home details, we’ll send you our quote, and let’s close the deal in just 7 days.