You’re putting your house on the market and the idea is to MAKE money, not spend it. But there are costs involved when selling a home that you might not anticipate. Don’t let yourself be blindsided by these unexpected expenses:
- Utilities: You will need to keep your utilities running until closing. Not only does it allow the Realtor to show that the home is fully operational, it also helps prevent other possible issues. For example, during hot, summer months having the A/C on will help to keep the home fresh and mold-free. And of course, you want the utilities on for the buyer’s final walk through. Your Realtor can help you decide when it is the right day to have the utilities turned off.
- Renovations and Repairs: Before putting your home on the market, you need to budget for any renovations and/or repairs that will need to be done. Walls looking drab? They will need a fresh coat of paint. Stains on the carpet? You’ll want to give it a good steam cleaning. There may be a lot of little things that need to be done, or there might be one or two major projects. Either way, you’ll want to be prepared for the costs involved. Before getting started, do your homework and find out which home improvements get the best return on investment.
- Seller Credits to Buyer: If you don’t want to deal with repairs or renovations, it is possible to extend a seller credit to the buyer to compensate for the cost of fixing up the house. These credits are a loan option that allows buyers to finance their closing costs and, as a result, purchase the home with less cash down. But be aware that lenders cap the credit amount that a seller can extend to a buyer at 3% to 6% of the total mortgage.
- Staging Costs: When your house is on the market, you want it to get as much exposure to potential buyers as possible. Great pictures and/or videos and descriptions of your home online are one of the most efficient ways to reach potential buyers. You may need to hire a professional home stager. Costs to do this can range from a couple of hundred dollars to $5,000 or more, depending on what you request. At Tampa Realty; Craig does all our custom photography and videos! Take a look!
- Agent Commissions: Realtors are paid on commission. They usually get 6 percent of the home’s sale price. Generally, commission is split between the seller’s agent and the buyer’s agent. The home seller typically pays the commission fee, and therefore should take that into consideration when determining the asking price.
- Moving Costs: Make sure you include moving expenses in your budget when selling your house. Hopefully you will get your asking price and make a nice profit on your home sale, but you should be prepared to cover your moving costs even if the house sells for less than you hope.
Take all home sale costs into consideration. Be sure to visit our Fit-To-Sell series to learn more about getting top dollar for your home.