Start Big
If you are thinking of selling your house, but aren’t sure if you have enough money upfront to do so – or you just want to know the costs of selling – this post is for you. If you’ve been wondering, how much does it cost to sell a house? Especially in today’s uncertain economy, the traditional selling process can be daunting. We’re going to break down home selling costs and go over everything from A to Z, and the first thing to do is start with the biggest deductions.
The Mortgage
The first thing you need to figure out is your outstanding mortgage balance, so you know how much you absolutely have to have in order to make your net profits worth it. You can call the mortgage company at any point to find out if you have a prepayment penalty, and to get a mortgage payoff amount. Then you’ll have a dollar value you can work with for the rest.
Real Estate Agents
Sellers typically pay the real estate agent commissions, which the average cost is a total of about 6% of your home’s sale price. To be clear, the seller’s agent and the buyer’s agent typically split this amount, but according to the National Association of Realtors, the seller pays the agent fees.
Preparation Costs – Staging, Photos
One thing to consider as a possibility is home staging costs, which can be quite expensive but makes a world of difference. A real estate agent will sometimes pay at least a portion of this expense, so it may be worth checking into. Regardless, one thing to invest in is your professional photos. A professional photographer typically charges anywhere from $75-$300 for a one-hour photoshoot, and it’s well worth it.
Home Inspection
In preparing for the sale, it’s natural to do home improvements and work on your curb appeal for attracting potential buyers. The actual home inspection is a lender requirement that the buyer usually pays for. However, any necessary home repairs found as a result are repair costs that you are responsible for. You may want to consider paying for a pre-inspection, so there are no surprises. The home appraisal is another lender requirement that the buyer depends on for financing.
Closing Fees
All together your closing costs should account for no more than 2%-5% of your home’s sale price. Since this is a comprehensive breakdown, let’s quickly go over these. Property taxes are often overlooked. You will get an amount for the prorated property tax you owe at the date of closing. Transfer taxes are also included. Transfer tax is the cost of transferring the deed to the buyer, and is usually minimal. Attorney’s fees, title insurance, and escrow fees are all part of the closing costs.
Negotiations
Especially in a buyer’s market or a slow market, you always need to allow for seller concessions. Negotiations are a big part of the closing process, and sometimes you will be asked to cover things you didn’t plan on. In a seller’s market, you have less to worry about. You can also offer to pay for things like the home warranty, homeowners insurance, or some of the HOA fees for the buyer, to help close the deal. It helps if you’re prepared for these types of closing costs.
Other Costs
In addition to the things we’ve covered, there are a couple of other costs it helps if you plan for when selling a house. For example, moving costs can be quite an expense, especially if you need to consider storage fees. Also, when you sell a house you sometimes have to pay capital gains tax. However, if the home was your principal residence for at least two out of the past 5 years, take advantage of the tax break that allows the sale to be tax-free. As long as you don’t make more than $250,000, or if married and filing jointly $500,000, on the profit end, there are no capital gains taxes.
Expensive – There is an Alternative
It’s an average estimate that it costs around 10% of the home sale price to sell, but we have found this to be an extremely low-end guess. Depending on so many volatile factors, the amount here can vary greatly. It’s definitely expensive to sell a house in a traditional sale. But if you love the simplicity and want to sell fast, contact us here at Sell Your House Fast – Mississippi.
Sell Your House Fast – Mississippi
Sell Your House Fast – Mississippi is a company built on integrity and reliability, and we believe in complete transparency. We are the cash home buyers who care about our clients and understand that life is unpredictable. We offer a solution that benefits all parties involved, even in foreclosure. We buy all houses regardless of the condition, we just deduct a percentage of the purchase price to cover those expenses. Check out our homepage right here on this website today, for complete details. We look forward to serving you!
With us, Here’s What you Get:
- NO REAL ESTATE AGENT COMMISSIONS!
- NO STAGING COSTS!
- NO CLOSING COSTS!
- NO HOME REPAIRS NEEDED!
- NO FEES OR HIDDEN COSTS!
- NO HOME INSPECTIONS!
- NO APPRAISALS NEEDED!
- NO-OBLIGATION CASH OFFERS!
- CASH FOR YOUR HOME IN AS LITTLE AS TWO WEEKS!
We pay cash, and there is no charge for our services, ever! When you want no hassles and need to sell now, fill out the short form on our website and someone will be in touch shortly to schedule a time to visit the property in person, at which time they will make you a free, no-obligation cash offer on the spot! Sell Your House Fast – Mississippi are the cash home buyers you can trust.
