The Hidden Costs of Selling Your Home

The Hidden Costs of Selling Your Home

A few days ago, I wrote a post about the Hidden Costs of Buying a Home what a great opportunity to now talk about the costs of selling your home?

The biggest cost that most sellers focus on is the commission.  This is, in some cases negotiable, however, keep in mind if an agent is quick to negotiate away their paycheck how well are they going to negotiate the best price possible for your home?  In the changing real estate market, do you want the best or do you want the cheapest?  The focus, however, should be more on what is included in that commission.  In addition to the commission, there are a variety of other costs that include state and local transfer taxes, and title company fees.  There isn't much you can do to avoid these fees and they vary depending on which state and which county you live in and whether or not this was a primary residence too.

Here are a few things that you may not have considered while you are thinking about selling your home. 

Once you have accepted an offer on your home, the potential buyer will want to have a home inspection.  This can be a contingency, it can be classed as "As-Is for information purposes only" and it can have a "Right to Terminate" associated with it too, whereby if there are many items of concern in the inspection the buyer can have the right to terminate the contract.  These repairs could be costly if you have any maintenance issues you have not addressed in some time. 

Professional photography is not cheap.  If your agent reduces their commission, they may take their own pictures (not recommended unless they are a photographer) and they may not take a video tour, and if they do they may pass that cost on to you.  This could cost you $500-$1000.  This service is included in my commission and includes photography and a video tour.

Landscaping.  Curb appeal is key to getting people into your home.  Improving your landscaping could increase your home's value by as much as 12%.  Check with local landscaping companies to get an accurate estimate.

Do you want your home staged?  This is not a service I offer, however, I am happy to refer you to a local staging company.  I will give you recommendations when I walk through and I will help you rearrange the furniture you have to make the best use of the space you have but I don't offer professional staging services.  

If you have already moved out and into your next home, you can't ignore the cost of utilities.  During the summer, you will definitely want your home's air conditioning to be operational and on the flip side, you will want your home's heat to be on during the winter.  Not having your utilities on limits inspections could very well reduce the sales price of your home.

I am not an accountant or an attorney, but I would be remiss if I didn't mention Capital Gains taxes.  If your home has appreciated a lot (personal deduction of $250,000 for a single person, $500,000 for a couple) you may have to pay capital gains, if this was not your primary residence and you live in another state there could be state withholding taxes.  Consult with a tax attorney or an accountant to see what tax implications there are in selling your home.