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The Costs of Selling a Home

In selling a home, it seems like you should only be gaining profits. You are in fact selling, not buying. Unfortunately, the process of selling a home includes having to expend money. However, if done correctly, the costs of selling a home can help you increase the profit you earn on the home. What are the costs of selling a home?

4 Things to Avoid When Staging Your Home

  1. Prepare the home. The house needs to be in a condition that piques the interest of buyers. Have a realtor help you decide which aspects of your home need to be fixed before putting the house on the market. Instead of having to spend thousands on renovating the bathroom, maybe a new paint job will do the trick. Then you will need to stage the house properly. Pack the majority of your belongings, clean, and organize. Cleaning, organizing, and de-cluttering will take far more time than money and will be well worth the effort.
  2. Be prepared during the sale. When the house is on the market, costs can add up quickly if you are not prepared. As people come to see the home, it is best to have a game plan on what you are going to do. If you already have an arranged place to stay or eat, it is going to be a lot cheaper than having to rush to a restaurant or hotel because you and your family were not prepared. Find cheap methods of food, shelter, and entertainment: having a picnic, going to a park, visiting the library, cooking at a friend’s house, or living with family are all possibilities.
  3. Cut the closing costs. This is by far the largest expense in selling a home. Closing costs are negotiated and typically end with the buyer paying the majority of the expense. The highest fee the seller has to pay is generally the commission for any professionals involved in the sale. There is no set commission, but it can add up to around 6% of the sale.

Purchasing a Home for your Family

A few other costs not directly involved in the costs of selling a home are the final payment of your loan, property taxes, attorney’s fee, association dues, and transfer taxes. To know more information about these costs, talk to your real estate agent and title company.

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