Selling your home involves more than just listing it on the market. It's crucial to be aware of the various costs that come with the process so you can be well-prepared and avoid surprises. Here’s a guide to the costs you should anticipate when selling your home.
Primary Costs
Closing Costs: Just like homebuyers, sellers have their own set of closing costs. These are typically the largest expenses and include real estate commissions, taxes, and various fees. These costs are deducted from the sale proceeds at closing.
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Real Estate Commission: This is usually the largest part of your closing costs. Following the recent NAR settlement (effective August 17, 2024),
Home sellers must now approve any payments to buyer brokers in writing. These buyer broker compensation offers cannot be listed on MLS but can be advertised through off-MLS platforms like social media.
Sellers can still offer concessions, such as covering buyer closing costs, on MLS platforms.
Agent fees and commissions remain fully negotiable, giving sellers more control over their expenses. These changes aim to increase transparency, reduce costs, and help sellers make more informed decisions in their real estate transactions. Read more.
Learn more about how commission works.
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Fees and Taxes: Expect to pay between 2% and 4% of the home's sale price for additional fees and taxes. These costs can vary greatly depending on the state in which you’re selling.
Secondary Costs
In addition to the primary expenses, there are secondary costs that can impact your budget when selling your home. These are often less predictable but still important to consider as you prepare for the sale.
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Home Repairs and Improvements: Before listing your home, you might need to make various repairs and improvements. This can include tasks like staging, carpet cleaning, painting, landscaping, and general fixes. In a competitive market, you might need to invest more to make your home appealing to buyers.
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Home Inspection: While the buyer typically pays for completing home inspection, they may request repairs based on the findings. You might need to cover these costs to close the sale successfully.
Being aware of these potential expenses helps ensure that the process of selling your home goes as smoothly as possible. Understanding the costs of selling your home can make the selling journey more manageable and less stressful.