Closing costs are not the only cost of house selling. The process is complex and involves many moving parts. While you might be prepared for property taxes, real estate agent commissions and other expenses, it's best to prepare for every possible cost.
To make sure you budget accurately, here are some additional costs sellers typically pay:
Curb appeal can attract buyers both in person and online, so landscape maintenance is an important investment. This could include mulching shrubs, planting flowers, mowing the lawn, removing weeds and debris. While you can do yardwork yourself, new plants and supplies can add up quickly.
It usually takes a couple of weeks to move from your current residence to your new one. You may have already purchased two houses and paid the ownership cost separately. This means you'll have to pay for storage space, transportation and other moving costs during that period.
If the transition is long enough, you may also need to budget for supplemental housing, such as a short-term rental or hotel room.
When someone sells a property for a higher amount than the original purchase price, the IRS considers the amount as a capital gain. Capital gains tax are either short-term or long-term, depending on how long you've owned the property before selling it.
It's common to incur additional expense to win over a hesitant buyer. Concessions are a valuable negotiation tool for both buyers and sellers, and can help keep a real estate transaction smooth and simple. For example, the cost of the home inspection or additional processing fees are covered by a seller concession.
You'll likely use the proceeds from your home sale to pay off your mortgage, but you may actually owe more than the payoff amount on your statement. In this case, you'll have to factor prorated accrued interest to the total balance. There might also be a prepayment penalty to budget for. Consulting your lender and going over the details of your contract will help you prepare for these costs.
The cost to sell a home might seem daunting, but the more you prepare for these additional expenses, the easier the process will be.
Kim Clark started her real estate career in 1999 and shortly thereafter obtained her Broker’s license in 2002. After working for larger, corporate offices, she realized that her business and clients needed a more personalized and flexible firm. She founded Bayside Realty Consultants in 2007 offering a space of unity, collaboration and encouragement for agents and their clients. Kim specializes in the unique Cape Cod market comprised of primary, vacation and investment properties.
She says "It is great to be a part of helping make a homeowner's dreams come true". Clients and their individual needs can make things very exciting! Kimberly's enthusiasm is contagious and it has been a real asset in her successful career. She says, "Never quit. Just do what you like and the rest just falls into place." She is certified in several real estate designations including GRI, CBR, CRS, e-Certified, and a certified trainer.
