The Real Cost of Selling Your House | Property Sale Expenses Explained

When you’re selling a house, there are quite a few extra costs that many people forget to consider.

From the real estate agent’s commission to the closing costs, it can be difficult to cover all of your bases. 

These “hidden” costs start really eating into your profit you thought you were going to get when the house closed after being sold, but you end up walking away with a much smaller amount then you thought. 

In this blog post, we’ll go over some of the most common costs of selling a house and how you can prepare yourself for them. We’ll also talk about ways to speed up the process and make it easier on yourself in terms of money.

Selling a house doesn’t have to be expensive or difficult — just follow these tips and you’ll be on your way!

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Common Costs When Selling Your Home

Selling a house in theory should be straightforward. Put it on the market, sign a few papers, and you’re done right? Well not exactly.

There are a number of costs associated with selling a house. And if you’re not prepared for them, they can really add up.

Here are some common costs you should anticipate when selling your house:

Repairs and Renovations

Before you put your house on the market, you’ll want to make sure it’s in tip-top shape. This means repairing any damage and making any necessary renovations.

The cost of repairs and renovations will vary depending on the work that needs to be done. But it’s important to factor this into your budget when selling your house.

You don’t want to be caught off guard by unexpected repairs or renovations that need to be done.

Staging

If you want your house to sell fast, you’ll need to stage it. This means making it look its best for potential buyers.

You can do this yourself or hire a professional staging company. The cost of staging will vary depending on the size of your house and the amount of work that needs to be done.

Staging not only helps your house look good for open houses but with the rise of virtual tours, it is now more important than ever.

Real Estate Agent’s Commission

Most home sellers want someone who knows the housing market and can help them sell their house quickly.

A real estate agent can do just that, but they will charge a commission for their services. This commission is typically 5 or 6 percent of the final sale price of the home.

For example, if your home sells for $500,000, you can expect to pay the real estate agent $20,000 to $30,000.

While this may seem like a lot, it’s important to remember that the real estate agent makes the majority of their incomes from commission. This is one of the biggest costs associated with selling a house, so it’s important to be prepared for it.

Closing Costs

When you sell your house, you’ll also have to pay closing costs. These are the fees associated with transferring ownership of the property from you to the buyer.

They can include things like:

  • Title insurance.
  • Loan origination fees.
  • Appraisal fees. 

Closing costs are typically around 2 to 5 percent of the final sale price of the house.

Using the same example as above, if your home sells for $500,000, you can expect to pay $12,000 to $15,000 in closing costs.

Your Mortgage Payoff

If you still have an outstanding mortgage on your house, you’ll need to pay that off when you sell. The remaining balance of your mortgage will be due at the time of sale.

If you owe $100,000 on your mortgage and sell your house for $500,000, you’ll need to pay down the remaining balance of the mortgage, plus any associated fees.

Paying off the mortgage is something that many home sellers don’t think about until it’s time to pay off their mortgage. So be sure to factor mortgage payoff into your budget when selling your house.

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Additional Costs To Consider

Thought we were done? Nope!

There can be optional or additional costs that you should be aware of.  Many are not always mandatory but can help sell your home faster. These include:

Moving Costs

Since you’re selling the house you lived in, you must have a plan in place for where you’ll live after the sale. This often means renting or buying a new place or moving in with family or friends.

You may have to pay for things like storage and moving trucks if you’re not able to move everything in one trip or don’t want to deal with the hassles of moving everything yourself.

Home Warranties

Some home sellers offer home warranties to buyers as an incentive to buy their house. 

A home warranty is an insurance purchase made by the seller that covers the cost of repairs for certain appliances and systems in your home.

While this is not required, it’s something that you may want to consider if you’re trying to sell your house fast.

Homeowner’s Insurance

You’ll need to maintain your homeowner’s insurance until the closing date of the house, even if you’ve already moved out. This is to protect you from any damages that may occur while the house is on the market.

Once the house is sold, you’ll no longer need homeowner’s insurance and can cancel your policy.

Seller Concessions 

In some cases, you may be asked to pay for certain things that the buyer wants or needs. This could include anything from the buyer’s closing costs to minor or major repairs that need to be made on the house.

Seller concessions are negotiable, so be sure to speak with your real estate agent about what makes the most sense.

Wow, just reading that list is exhausting, right? 

Many homeowners who are in the market to sell don’t take into account how many costs pop up when selling their home.

What if there was a way to…

  • Avoid all of these hassles
  • Keep more of the proceeds
  • Simply move out and leave the keys behind

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Skip the Selling Fees with Revitalize Homebuyers

Here at Revitalize Homebuyers, we believe that every homeowner should get an efficient and easy selling experience.

Having trouble selling your house is a very common problem, and can become very stressful. 

Revitalize Homebuyers can help sell burdensome houses fast at a fair price.

We take on all of the selling costs and hassles so you don’t have to. When we make an offer to you, you don’t have to start calculating how much you will lose in fees, repairs or other selling costs.

The number we agree on is the number you get in CASH – period.

Worried about what needs to be fixed or upgraded? 

Let us handle the worry while you walk away with peace of mind knowing your cash offer is the amount you get when the house closes. 

If you’re interested in learning more about how Revitalize Homebuyers can help you sell your home for a fair cash offer, we would be happy to chat with you about your specific situation and how we can help.

Selling your home doesn’t have to be a stressful, time-consuming and expensive process. 

Let us take on the burden so you can focus on what’s important.

Learn More About Revitalize Homebuyers