You are definitely aware of the fact that buying a home is an expensive affair, but what about selling?
Many home sellers tend to overlook the costs of listing their homes only to be dumbfounded by how much their expected profit is undercut by one expense after the other.
If you are a first time home seller, you’ll be surprised to find that the amount that goes back to your pocket is far much less than you initially anticipated.
It is important to know what you are in for when you plan to list your home to avoid being taken by surprise. Every phase of the house selling process is ridden with expenses that need to be catered to.
Even before your house is listed, there are some upfront costs you’ll incur. Read on for an overview of the costs to expect during the process of listing your house.
Upfront costs are the expenses to expect before the sale. When it comes to upfront expenses, most are a matter of choice. Even though upfront costs are not mandatory, they are very important to the sale and can be considered an investment.
In order to attract potential buyers and fetch the best prices, your property needs to be in good condition and should meet the expected standards.
This means that you should conduct all the necessary repairs, enhance the aesthetic appeal of the property and improve the living conditions of your house. Listed below are some of the upfront costs to expect.
– Repairs, for example, damaged and leaking roofs, plumbing system, flooring, walls, HVAC system, water heater repair amongst others
– Kitchen and bathroom remodels
– Pre-inspection reports
If your house is in bad condition and requires major repairs and improvements, then the upfront costs can leave a major dent in your wallet.
However, at Integrity First Home Buyers – We Buy Houses PA, we save you the costs and trouble of conducting repairs since we are ready and willing to buy your house as-is.
Expenses When Your House Has Been Listed
There are utility bills such as electricity and water you have to pay for while your house sits on the market.
Depending on how long your house stays on the market, these expenses can accumulate and run high.
You also have to ensure that the house is always clean and ready for viewing, which leads to further expenses since you’ll most probably hire such services.
In addition to these costs, you’ll also have to consider your homeowner’s insurance policy and property taxes.
When you sell your house for cash to a We Buy Houses PA Firm such as us, the process of selling your home is speedy and can be completed in just a matter of a few days.
This ensures that you don’t have to incur these expenses for an extended period.
Expenses At Closing
After finding a buyer and getting the best offer, get ready to have your profits significantly sliced. Before closing, there are various expenses you have to handle and they add up to slightly above 10% of the sale of your house.
-Realtor Commission – Under state law, your real estate agent is entitled to a commission before closing a house sale transaction. The commission 5-7% of the sale price.
– Mortgage balance and pre-payment penalty (if included)
– Property taxes
– Title deed recording fees
– Title deed transfer taxes
– Additional Repairs requested by the buyer
When planning to sell your home, you need to carefully weigh your options. Considering the financial implications of listing a house, the option may not be viable for everyone.
For a straight-forward and cost-free sale of your house, contact us Integrity First Home Buyers, your local and professional we buy houses PA company.