Selling your home costs $$$
Cocoa Bowden
Helping people buy and sell their first home or residential investment in Baltimore and Alexandria cities.
Whether you’re at the casino, starting a?business, or selling your home the same phrases apply?“it takes money to
Whether you’re at the casino, starting a?business, or selling your home the same phrases apply?“it takes money to make money” and “you have to play to win”. This blog post will introduce a few fees you may?have not?considered when selling your home.?
THE ONLY RULE: NET PROFIT!
1| Pre-Inspection Anyone who decides to buy your home will have the home inspected. Surprising or unexpected?findings will give your buyer a significant advantage during contract negotiations that may negatively affect your bottom line. A pre-home inspection is necessary to prepare and gives you a great aggressive pricing advantage. Estimated Fee: $500
2| Appraisal Banks grant mortgage loans according to the appraised value of your home. As the seller, you need to know the appraised value. This value comes in handy for a number of reasons and will be paid before closing. Estimated Fee: $450
3| Title Inspection Banks and insurance companies need to know if there are any discrepancies on the deed to your home. Neither will work with a buyer without a current?title inspection. Often, these inspections uncover liens against the value of your home. If liens are found they must be free and clear prior to selling. Estimated Fee: $1,200
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4 |Taxes Self explanatory, but often overlooked when deciding to sell your home. Sales taxes vary between 3 and 4 dollars per thousand depending on your state For Example a 4 dollar tax on a eight hundred thousand dollar home is thirty two hundred dollars. [$4(tax) x 800 ($800,000 sale price)= $3,200]. Only the net profit is taxed. If you are transferring a mortgage these fees will be proportionately reduced.?
5 |Concessions Your realtor is valuable. Again, your realtor is valuable. Even the least observant home seller will recognize the value of a realtor during the?negotiation process. Concessions are a result of the fair and equitable negotiation decisions between seller and buyer. Common concessions on the seller's end include: The buyer's agent fee: 3-5% of the sales price, Homeowner Insurance Premium: $1,600, Home Warranty: $600, and HOA Transfer: $300. These are not always necessary as all negotiations are property specific and time sensitive. However, it is important to factor in concessions when planning to sell your house.?
6 |Repairs Perhaps the most expected cost on the list. Repairs must be strategically decided based on?the effect they will have on your home's appraisal value.I’ve also?included move-in or show readiness?in the section because it affects the buyers implied valuation. Estimated General Repairs: $800 Estimated Landscaping Fees: $3,500 Estimated Cleaning Costs: $200 Staging: $2,000 monthly.
Bottom Line
Determining your home selling budget is no small task. It’s a crucial first step to ensuring your next home meets all you wants and needs. If you’re ready to take on the challenge, and develop a detailed sales plan let’s connect.