Selling Your Home: Commonly Forgotten Costs

After much consideration, you have decided to list your house and enter the real estate market. You have a list price in mind and believe that it should be sufficient to cover your mortgage, as well as any fees associated with selling. Yet, many homeowners overlook a few costs that are sometimes a necessary part of selling.

Appraisals

An appraisal gives you a more accurate value of your home’s worth. Although the buyer will likely schedule their own appraisal, obtaining an appraisal as the seller may also be beneficial. Asking your real estate professional about the best timing for obtaining an appraisal can save you from problems down the road. It can give you a better idea of a fair market price and can prevent any surprises between the buyer’s appraisal and your evaluation of your home’s worth.

Repairs

You want your home to have the best chance at selling and that means increasing its appeal and value. Home repairs can increase the appeal of your home and attract more buyers. Some home repairs including a new garage door, increased home insulation, and new windows can increase your resale value, thus increasing the potential for a higher return on your investment. You also want to consider inspection repairs. Many serious buyers will bring in an inspector to get a professional evaluation of what they are purchasing. You may be asked to make home repairs in order to close the deal.

Mortgage Payoff

Most home sellers are aware that they have to pay off their mortgage upon closing. What many sellers fail to realize is that the actual cost of payoff could be more than what is owed on the house. Depending on your mortgage company, it is possible that you could also owe any pro-rated interest to the remaining balance. Always inquire about prepayment penalties before listing your home or accepting an offer.

Home Staging Costs

While home staging is an optional cost, it may help you sell your house faster and for a higher price. Home staging is especially useful if you have already moved out of the house and it is currently empty. Empty houses can make it more difficult for the buyer to imagine their belongings in the house. Home staging costs vary, depending on furnishings and length of contract, but on average, can sell 88% faster and for 20% more than a home that is not staged.

Before you list your home on the market, it is important to consider all of the costs that are associated with selling, in addition to commissions and closing costs. Make sure you consider these commonly forgotten selling costs, and consult your mortgage and real estate professionals for more information. Working with a local real estate expert can help you determine an ideal selling price based on a comparative market analysis. With expert negotiation skills and an advanced knowledge of the market, your real estate agent can guide you before, during, and after the selling process.

 

This post is intended for informational purposes only and should not be taken as professional advice. The point of view and opinions expressed in this post are those of the author and do not necessarily reflect the position of Realty Executives International.

This post was written for Realty Executives by Heather Hardy. Heather is an avid writer who has contributed to numerous blogs and internet news sources.  While she writes on a variety of topics, her specialties include real estate, home improvement, and travel. After obtaining two degrees, Heather has found her passion in writing content that improves both readability and knowledge.

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