The housing market has seen some unprecedented changes over the past year. Many families are relocating and buying homes, and many home sellers are making significant profits thanks to rising home selling prices. But selling a house will cost you some money, as well.
If you are considering the sale of your home, you might be wondering about the cost to sell a house. This article will explain some of the home selling fees you will encounter when you put your home on the market. Read on and learn what you will pay when selling a home.
Real Estate Commissions
If you aren’t interested in the time and hassle of trying to sell your house on your own, you’ll want to work with a realtor. A realtor will have a good understanding of the home market and help you determine the right asking price and how much to sell a house in your area.
Working with a realtor gives you the best chance at finding a buyer, but there are commission fees involved. In most cases, the seller pays the commission on the sale of the home. The commission is typically 6% of the sale price.
If you live in the Chicago area and want to relocate quickly, you can sell your home to an organization like URB. URB Chicago specializes in the quick purchase of houses, and they don’t charge commissions. They even pay the closing costs.
Home Repairs May Be Part of the Cost to Sell a House
If your home needs repair, a realtor may advise you to make those repairs before listing your home. Most cosmetic repairs like repainting a room or replacing a leaky faucet don’t require much time or money.
But your home may require a modest remodel of a kitchen or bathroom to increase the value. A home inspection may uncover other repairs like a leaky roof or faulty wiring. These costs can be high and may cut into the profits from the sale.
Unless your home is free of any liens or mortgages, most of the proceeds of a home sale will go toward paying off a mortgage. This isn’t part of the home selling fees, but it is vital to know the amount of your loan payoff. Set the selling price of your home high enough to cover your mortgage plus the profit you wish to make.
Both the buyer and seller of a home are responsible for paying closing costs. The seller usually pays more than the buyer – roughly 10% of the sale price. These costs include taxes, fees, and other services and vary by your location. Some of the standard fees included in closing costs include:
- Title insurance
- Escrow and closing fees
- Prorated property taxes
- Transfer fees
- Any outstanding dues to an HOA
Know the Costs
It’s an exciting time to be a home seller. Demand is high, and there is an opportunity for you to relocate to the home of your dreams with a tidy profit. Before you put the “for sale” sign in your yard, it’s essential to know the cost to sell a house.
You’ll pay 6% of the sale price in realtor commissions. You may need to make repairs or updates to your home that could cost a few hundred dollars or a few thousand. And there are closing costs associated with the sale of a house that the seller is responsible for paying.
To learn more about selling a home and everything involved with the process, please explore the rest of our site.