The hope when selling a home, at least most of the time, is that you come out making money instead of losing money. Knowing the numbers and having information about the cost of selling a home can help you make more at the end of the deal. Mostly, it’s about being prepared for the costs. The average cost of selling a home is about 15% of the total sale of the home. This means that if you sell your home for $200,000 you will be paying right around $30,000 for the sale.
Typically the largest percentage is going to go to your realtor. It is typically about 6% of the sale price. Your realtor will not only bring the smarts to the selling table, but they also help you figure out the best plan to sell your home. Their entire job revolves around figuring out the best ways to stage the home, how to market the home and the best way to get your home sold as quickly as possible.
Home improvements or repairs can be expensive as well. On average 70%+ sellers will do some type of repair on the home before selling and 3 repairs is the norm for sellers. These repairs can be anything from landscaping to updating a kitchen or even replacing the carpets. You can try to keep up with these repairs over the years if your home is older and if you are selling a relatively new home you may get lucky and not need to do any repairs.
Home inspections are incredibly important for both the seller and the buyer. Home inspections take a look at HVAC, plumbing, electrical systems as well as the roof and foundation. Having an inspection allows the seller to make sure they aren’t buying a home that will suck more money out of their pockets and it helps keep the selling timeline on track for the sellers. It’s a safety net for both sides.
Home staging is one way to make the home look more welcoming to an array of people instead of a home that is currently being lived in. It can be difficult for people to see their family moving in when a home is cluttered with another families' things. This may be covered in part or fully by your realtor if it is part of their marketing services.
According to a study done by Realtor.com a seller will cover 1-3% of the closing costs on the home. Closing costs typically include taxes, an attorney, title transfer and insurance companies. Sellers will agree to pay part of these costs in order to “sweeten the deal” for the buyers.
There are two things that a lot of people tend to forget and those are moving out and your remaining mortgage. Moving can be more or less expensive depending on how much work you want to do. If you do it on your own with a few friends it will cost you a rental truck and a few pizzas and drinks or you can allow others to do it and you can hire a moving company. Your remaining mortgage amount will be paid by whatever you make on the home. You are left with whatever hasn’t gone to the things listed above.
If you are in a spot where you will not be able to make more than what is left on the mortgage you do not want to sell unless it is absolutely necessary. You can wait it out and use the time while the market isn’t great and do small upgrades on the home to make it an easier sell when things turn around.