You put your home on the market. Someone agrees to pay your asking price. It sounds simple, right?
But there are plenty of other costs associated with selling a home. And, when you’re the seller, the last thing you want is to be blindsided by those associated costs.
So, what are the closing costs for a seller? And what are the other, non-closing costs a seller can expect to pay? Here’s a look at the costs of selling a home, as well as how to manage those costs as you navigate the sales process.
Getting Your Home Ready to Sell
Most homes aren’t ready to go on the market. A good real estate agent will recommend some changes that will help the home sell quickly and at its maximum value. What kinds of changes? It’s common to start with a thorough cleaning, everything from the windows to the floors to the insides of appliances. It may also be a good idea to add fresh paint. And, depending on how your furniture and rooms are arranged, you may want to do some www.
And how does your yard look? You want your home to make a fantastic first impression, which might mean some maintenance and landscaping out front. All of this costs money, and it’s going to be money that comes out of your pocket before you have a seller. This investment pays off in the long run, but it’s not one that can be rolled into closing.
Of course, the amount of money you’ll need to spend to get your home ready for the open market will depend on the current state of your home. You may just need the thorough cleaning — or you may need more advanced maintenance and repairs.
Costs at Closing
The biggest closing cost is the commission to the agents. This commission typically takes about six percent out of your home proceeds. You may have also negotiated concessions with the buyer, and those monetary concessions will come out at closing. City or state taxes are paid at closing, too, as is the home warranty to the buyer.
You may also need to pay capital gains taxes on your profit. Capital gains taxes aren’t incurred if an individual seller earns less than $250,000 in profit or if a couple earns less than $500,000. But, in some cases, the capital gains taxes can come as a surprise.
These costs come out of the profit you’re taking home on your investment. A payment will be made to satisfy your mortgage at closing, and you’ll pay these other closing costs. And then you take home the rest. But it’s important to know exactly how much you’ll take home because you may need it for a down payment on your next house — and you don’t want to come up short.
What About Your Move?
Don’t forget about your move either. You may need to buy boxes, rent a truck or even hire movers to get you from one place to the next. This isn’t free, of course, so consider moving costs as costs that are closely associated with your home sale.
Don’t Be Surprised During Your Home Sale
So much goes into buying and selling homes. Which makes perfect sense given that a home is likely the largest single investment an individual or family will ever make. So, when you’re getting ready to sell your home, and when you want to get the biggest return on investment, call on the team at CENTURY 21 Core Partners.
We can walk you through how to get your home ready to go on the market, and we can also help you anticipate and manage the costs associated with a home closing. Don’t be surprised by hidden costs during your home sale. Trust the York experts and real estate professionals you’ll find at CENTURY 21 Core Partners.
Contact us today about selling your York area home.