What Does it Cost to Sell Your Home?

Is it Expensive to Sell Your Home?

Today’s aggressive market has given sellers the advantage, but you may not be aware it does cost money to sell your home. Some expenses are negotiable or optional, but sellers should prepare for a few fees.

Today, we’ll clear up any confusion around selling a home and expose any hidden costs. Don’t worry—listing your home with a realtor might not be as expensive as you think. 

Real Estate Commission

Realtors are in high demand these days, and they work around the clock (think evenings and weekends) to fight for you in a highly competitive and lightning-speed market. They’ll act as your advocate to buyers and other agents. They will help draw prospective buyers, negotiate better offers, hire a lawyer to draw up the contract, and take care of the transfer of title.

The seller usually pays 5 to 6 percent of the sale price to cover real estate commission. You may be able to negotiate a lower commission if your home sells quickly, the local market is strong, or the home price is high. 

Home Repairs & Staging

You can increase your selling price by investing a little money fixing issues and staging your home before listing it. Sellers may also ask you to cover repair costs if an inspection report comes back unsatisfactory.

Home Inspection

To avoid any repair negotiations, you may want to inspect your home before listing it for sale. Address anything damaged on your property, replace broken appliances, and make any needed cosmetic updates. A presale home inspection is optional and will cost around $400 or more. If you want to inspect your home before listing it, check out these options.

Closing Costs and Additional Fees

Sellers usually pay 2% of their home’s price on closing costs. These costs tend to be fixed and include things like transfer taxes, escrow expenses, and notary fees. Any outstanding property taxes, a prorated share of the water and sewage bills, and any balance on your mortgage will also be collected at closing or taken out of the proceeds of your home sale.

Capital Gains Tax

Taxation on the profit you make from selling your home may be collected as well. However, if you’ve lived in your home for at least 2 out of the last 5 years, you may be exempt from this fee. Additionally, single home sellers can exempt up to $250,000 of the profit, and married couples can exempt up to $500,000. In other words, if your profit is less than these amounts, you may not have to pay any capital gains tax on the sale. 

Hire a Realtor You Can Trust

A trustworthy and experienced realtor can act as your guide and advocate as you list and sell your home. If you’re looking to buy or sell a house in Lancaster County, don’t hesitate to reach out to your friends here at the Niv Lemoine Real Estate Group.