What does it really cost to sell your home today?
There are a few hidden costs most sellers don’t anticipate, and some Realtors don’t do a good job making sure their clients know all of these costs, so I want to make sure you know what they are.
What we do for our own clients to mediate these costs is provide a net sheet at the very beginning of the listing process. This is a detailed breakdown of all the closing costs involved in selling a home. We bring this information to the very first meeting and as we get offers, we provide this information again. I don’t want our clients to get any surprises
For now, though, here are four hidden costs you may incur during the selling process:
1. Commission costs: Sometimes agents don’t communicate well with their seller and they fail to understand exactly what type of commission structure will be charged on the successful close of the property. Sellers generally pay for the buyer’s agent’s commission as well as the listing agent’s. Make sure you understand how that works and how you’re being charged.
2. Closing costs:This is where our net sheet comes in handy. Take title insurance, for example. This is usually the seller’s responsibility to pay to ensure the title is free and clear. Another closing cost is the HOA status transfer fee. Both of these costs can be substantial, and there are quite a few smaller costs that come with the contract, so make sure you know what they are.
3. Moving expenses: Sometimes sellers just don’t consider what it will cost them to move. There will be moving expenses whether you’re hiring a moving company or doing it yourself. Get an estimate so you’re aware of what your moving expenses will be.
4. Multiple mortgages: If a client moves prior to selling their home, they’ll have to carry two mortgages and make two payments. This is why we usually recommend to our clients not to go under contract on their new home until they’ve listed and begun selling their old home. I did a previous video titled “Should I Sell My House Before I Find a House?” that addresses this topic that you can watch here. Make sure the agent you hire has a lot of experience navigating this process. You should be able to do both simultaneously without a hitch.
If you have any additional questions about hidden home selling costs or any other real estate topic, feel free to give me a call or send me an email. I’d be happy to help.