Are you aware of all the costs associated with selling a home?
If you’re like most people, the answer is probably no.
Sure, you’re no dummy. You probably know about the closing costs and the commision fee for your real estate agent. But there are other hidden costs that can pop up – often when you least expect it.
And if you’re considering selling your home, it’s important to be aware of them so you can avoid expensive surprises.
Here are 4 hidden costs of selling your home the traditional way that tend to be sizable:
- Low Appraisal
If your home is financed by a mortgage an appraisal is a must. And while they typically occur in a competitive market, a low appraisal can happen in any marketplace. If you are one of the unlucky sellers to get a call from your agent saying the appraisal came in below the sales price, that can be a pretty hard blow (up to 5%!).
Whether it’s a prospective buyer, the lender, or your real estate agent, chances are good someone will ask you to make repairs to your home during the selling process. Things like replacing a roof, repairing a cracked foundation, mold remediation, or fixing the air conditioner unit can cost thousands of dollars. Even minor repairs such as rotted wood or chipped paint can really add up. And you definitely don’t want to cut corners or do it yourself. If shoddy repair work is caught during inspection, you’ll end up paying a lot more money than you would had you hired a good contractor to do it right the first time.
- Staging & Curb Appeal
Everybody knows that a “show-ready” home with curb appeal can get sold fast. But the costs associated with that can be huge. Professional stagers aren’t cheap. Neither is renting furniture if the house is vacant. If the paint is looking dull or peeling, you may also have to hire painters to repaint. And new landscaping can often veer into the thousands.
- Holding Costs
It typically takes a while for a real estate agent to sell a home (about three months to a year). During this time, you still have to pay for things like property taxes, insurance, mortgage, utilities, and HOA fees, as well as any costs necessary for the upkeep of your home, which could include things like heating and landscape maintenance. These holding costs, also known as carrying costs, can start to pile up fast. It’s money that could be used towards another home, to cover the cost of moving, or for medical bills.
If your home is in mint condition and you’re not in a hurry to sell, you probably won’t be hit by too many hidden fees, and it’s probably worth listing with an agent.
But if you’re looking for an alternative, selling your home to a professional home buyer as-is for cash is a good option. They take care of all the repairs and fees. And once they give you a price, that’s it. They can also typically close in 10 days, making it a speedy and stress-free process.