How Much Will it Cost to Sell Your Home?
"How much will it cost to sell my home?" The answer to that common question generally falls into 3 major categories: fixing to sell, closing the sale, and moving.
You may have additional expenses connected with buying and settling into a new home: trips to your new area while house hunting, meals, lodging, buying furnishings, etc. Some of these expenses are tax deductible, but only if you are being transferred by an employer (who does not reimburse you) or are moving to a new job.
Here are the major expense categories:
- Fixing to sell: This is not the time to add on or remodel the kitchen or make other major improvements – even though many such improvements often pay, at least partially, for themselves when you sell. Now is the time to make your home fresh, clean, and neat, with an eye to getting your top price. This may call for buying paint, soap, wax, putty, tiling, carpeting or plumbing parts. It may also call for paying professional carpenters, plumbers, yard and cleaning people to do the work for you.
- Closing costs: As a seller, you can typically look forward to more income than outlay, especially if you’ve built up a substantial amount for your home equity. Possible refunds may include money you’ve already paid on your mortgage, insurance premiums, future property taxes, service contracts, heating fuel you’ll turn over to the buyer, utility deposits and the balance of any escrow funds held by your mortgage lender.
- Moving costs. If you choose not to move yourself, or if you aren’t being reimbursed by your employer, your largest moving expense is apt to be your professional mover. Moving companies provide a variety of services and a range of fees. To save as much as possible, shop for the best combination of rates, services and insurance, plus reputation for reliability. A non-binding estimate is apt to be lower than a binding one, but there’s no guarantee that your belongings won’t exceed the estimated volume or weight. The best tack is to go for a "binding-or-less" estimate, which should include not only volume or weight but, also, unforeseen expenses at your destination (extra carrying distance, bad weather, etc.)
Some other cost-saving tips: take only what you’ll use at your new home; do your own packing; insure your belongings sufficiently; take your valuables with you, personally, or send them by registered or insured mail.
Although we advise sellers to realistically anticipate their selling expenses, the bottom line is how much cash a seller walks away with after sale. If you’re interested in selling soon, we’ll be happy to provide a Net Proceeds Analysis for your house. Your call is welcome any time.