How much does it cost to sell your home?

More than you may expect. According to Bankrate.com, selling a home can amount to as much as 10 percent of the sale price, not factoring in holding expenses while the property sits on the market. To avoid sticker shock, here are eight line items to look forward to when selling.

Real Estate Agent Commission

As a seller, the real estate commission is often the single largest expense associated with a sale. Between the buyer’s agent and the seller’s agent, real estate commissions amount to 6 percent of the sale price. This means if you’re selling a $350,000 home, you could be on the hook for $21,000 in commission fees alone!

Home Repairs

To get top dollar for your home, it’s often necessary to spruce the place up before listing the property. Nationwide, the average cost to paint the interior of a 2,000 sq foot home will run around $2,100. This expense can be broken down to approximately $1.00 - $3.00 per sq foot, depending on the contractor and quality of materials used. Add in the cost of carpet cleaning at $0.25 a sq foot or $500.00, cleaning at $25.00 - $50.00 per hour or $150.00 - $250.00, exterior power washing $275.00 and you could be looking at several thousand dollars in expenses.

Utilities

While your property is being marketed, utility bills will continue to accrue.

Maintenance

Depending on the condition of the property, most homes need small repairs prior to being listing on the market. Loose doorknobs, unruly garage doors, cracked windows, uneven cement and other minor repairs can add hundreds or thousands of dollars to your selling costs.

Landscaping

Proper landscaping can significantly affect your selling price. A study by Virginia Tech suggests landscaping improvements can improve curb appeal and lend to an increase of as much as 12 percent to your bottom line. While landscaping cost will vary, a complete overhaul may set you back upwards of $3,000. At a minimum, existing landscaping should be trimmed and well-manicured.

Staging Costs

According to realtor.com, the average cost to stage a home is $300.00 - $600.00 for an initial consultation and $500.00 - $600.00 per month per staged room. For a fully staged 2,000 sq foot home, expect in the ballpark of $2,000 - $2,400 per month.

Closing Costs

What are closing costs on a house? Typically, these costs include prorated property taxes, title insurance, transfer taxes, HOA fees, an escrow fee, and various legal fees. In a typical transaction, the buyer assumes most of the closing costs, however, sellers can expect anywhere from 1% – 4% of the purchase price in closing. Fortunately, these items are deducted from the proceeds of the sale and do not need to be brought to closing in the form of cash unless the property is underwater.

Mortgage Payoff Fees

After you sell your home, the proceeds first go toward paying off any existing mortgage. Keep in mind, you may end up paying more than the total amount listed on your mortgage statement to account for prorated interest payments and any prepayment penalties offered by your lender.

Know How Much It Will Cost to Sell Your Home

Before listing your house on the market, take the time to research the costs, so you can be prepared. Most realtors will do an excellent job sharing these expenses with a client prior to entering a contract to list the property. For more information regarding costs associated with selling a home, check out "How to Calculate Net Proceeds from a Home Sale." If you prefer to avoid the expense of listing your property, we would love to purchase your home today “as-is”. Find out how much you can save on closing costs and other home-selling expenses with a free quote.