There is a lot to consider when selling your home, but one of the first questions many people ask themselves is “What sort of fees should I expect to pay?”
Real Estate Agent Costs
Agent commissions vary from state to state and are usually a percentage of the home sale price – but there are also other options your agent may present you with, such as flat fees, sliding-scale commissions, fixed rates and more.
Although the agent’s commission is usually the same regardless of whether your home is sold through auction or private sale, there are additional expenses associated with auctions (for example, there may be an auctioneer’s fee). This expense may be included as part of your real estate agent’s sales commission, but you should ask to be sure.
Advertising and Marketing Costs
Be sure to ask your agent for a detailed written marketing plan. In addition, all outgoing expenses should be agreed upon and documented throughout the term of your contract. Typically, you will be expected to pay for marketing costs and advertising, regardless of whether or not your home sells, so it can be a good idea to try to negotiate a ’no sale, no fee’ agreement.
Conveyance is the process of transferring ownership from one person to another. It involves detailed searches on the title; and for that reason, most people rely on the services of a Solicitor or Conveyancer. Costs can range from $500 to just under $2000, but are typically higher in states where solicitors are required to complete conveyance. Be sure to ask if the fee is inclusive of all costs, or whether it is an estimate.
Other Typical Selling-House Fees can Include:
If you have a current mortgage on your property, you will need to pay the lender the balance on your mortgage. If you intend to change the mortgage to another lender, there may also be discharge fees.
Costs of Repairs
It may seem obvious, but before you attempt to put your home on the market, consider the repairs that will be necessary to make your home appealing and ready for sale. Ask your real estate agent which of these repairs are mandatory or which are simply ’nice to have‘. Obviously, any major issues such as leaks, faulty plumbing or electrical work could turn off a buyer immediately and could lengthen the time it takes to sell your home, but certain repairs may increase the value of the home and garner a sale price that more than covers the original cost. It is best to try and foresee any potential maintenance issues that could arise during the sale process and rectify them immediately.
With more consumer-savvy buyers looking to buy property, there is an increasing need for homes to stand out from the crowd. Many property owners turn to home stagers to help them showcase their property’s best assets. Depending on your home’s price point, you might want to discuss the cost and benefits of a home stager with your agent.
It may have been many years since you have last moved, and the cost to use professional movers is sometimes a shock. There are many options when it comes to moving, from do-it-yourself options to all-inclusive moving company services, so be sure to compare the costs to find a solution that will work for your situation.