4 Unexpected Expenses Selling a House

When you decide to sell your house, it’s hard to not think about the final payday after closing. There are plenty of different ways that a home sale can go. Sometimes, it can be quick and easy. Other times, it can be long and arduous. Either way, there are several costs that sellers typically must pay in order to get the sale completed. While there is a large payday lurking ahead for them, home sellers must pay their way to the closing table.

Today, we will review 4 expensive parts of selling a house in detail so that you know what to expect when putting your home on the market.

1. Closing Costs

Closing costs are a huge expense for sellers when listing their homes on the market. Sure, buyers also have their share, but sellers aren’t off the hook. Home sellers are typically responsible for things like agent commissions, which typically run about 5-6% of the home’s selling price. There are also potential title transfer fees, property taxes, or even fees for breaking your current mortgage early. All of these closing costs add up for the seller. Getting rid of your property isn’t cheap!

Thankfully, some closing costs are negotiable between the seller and buyer. Depending on the norms of your real estate market, you may be able to have the buyer cover certain closing costs. Especially if there is more demand than supply of houses in your neighborhood, you’ll have more leverage. Do your best to offset as many closing costs as possible when selling your home.

1. Staging

While the concept of staging might sound like mere redecorating, it’s a nuanced game. Professional stagers don’t just rely on aesthetics. They understand buyer psychology and the latest market trends. What is the goal of staging your home when selling it? To make viewers feel like they’ve walked into their future home, not just another house on the market.

Achieving this ambiance can often mean replacing outdated furniture, sprucing up walls with a fresh coat of paint, or adding strategically placed art pieces. While these changes can boost your home’s appeal, they can also leave you with a bill far heftier than you might have anticipated.

When staging your home, you want to make a good first impression. Staging involves arranging furniture and decor in a way that can make potential buyers instantly imagine themselves in the space. While it sounds simple, professional stagers have honed this art to perfection, and their services come at a premium. Some homeowners even find themselves buying new furniture or decor to fit the ‘perfect’ image, adding to the cost. Usually, paying for home staging is worth the cost!

1. Inspections

It’s tempting to leave the home inspection on the buyer’s tab. After all, they’re the ones who want to know what they’re getting into, right? However, many sellers are now leaning into pre-sale inspections as a strategy. Is it really worth paying for a home inspection yourself when selling your property?

Yes, it can be worth it! By identifying potential issues before the house hits the market, sellers can rectify problems that might otherwise lead to reduced offers or tricky negotiations down the line. Gaining this foresight does come at a price. However, many sellers are willing to pay for it in order to tackle issues faster. Many real estate agents will tell you that getting this done ahead of time is a good idea too. If it makes future negotiations easier, it could be worth doing.

Unfortunately, this proactive step can be a double-edged sword. Pre-sale home inspections can give you a negotiating advantage. On the other hand, it can reveal issues that you feel compelled to fix before listing, leading to unplanned expenses. Not only do you have to pay for the inspection itself, but any resulting repairs or upgrades can quickly add up, particularly if structural issues come to light.

1. Moving Costs

Selling a home often means moving. Unfortunately, if you have lots of stuff, moving isn’t as simple as boxing up a few things and moving furniture. It’s a logistical dance, especially if you’re making a significant move.

Professional movers can be expensive, especially for long distances or large households. Although the price tag is high, it’s sometimes necessary. Then there are the indirect costs, such as:

• Storage units for items you can’t immediately shift
• Hotel stays if there’s a gap between your move-out and move-in dates
• Packing materials
• Truck rental
• Gas
• Damaged items

Whether you hire professionals or rent a truck and rally friends with the promise of pizza, moving isn’t cheap. Plan accordingly when you are selling your home and moving far away. It’s important to cover all your bases ahead of time. Even if the moving costs hurt your wallet, it’s sometimes better to have an extra hand to help.

Contact your local real estate professional when preparing to sell a house. There are ways to make it more affordable when you have the right real estate agent guiding you. Contact us to get started and learn how to sell your house in a smart and efficient way.

Author: ALEX CAPOZZOLO
Co-founder
SD House Guys

https://sdhouseguys.com/