When preparing to sell your house, it's crucial to anticipate the expenses associated with the process. Allocate a minimum of 10% of your home's value for selling costs, in addition to settling your mortgage. Knowing these costs is essential for planning your next home purchase.
Beyond the mortgage payoff, it's customary to set aside approximately 10% to 15% of the home's sale price for various selling expenses, some of which are optional but worth considering.
Sellers usually pay a commission of 5% to 6%, divided between the listing and buyer's agents.
Negotiating commission rates is possible, and agreements should be documented.
Property tax, real estate transfer tax, capital gains tax, and HOA fees are variable.
Consult your real estate agent for area-specific tax estimates.
Sellers may cover a separate title policy for the new homeowner, costing around $1,000.
A title search is conducted during the sale, addressing any ownership history issues.
Clearing your mortgage involves knowing the accurate payoff amount, accounting for interest and potential prepayment penalties.
Sale proceeds are applied to the remaining balance; any shortfall is the seller's responsibility.
Buyers often conduct inspections, and sellers may be responsible for addressing identified issues.
Budget for the moving process, whether you choose a DIY approach or hire professionals.
Understanding and budgeting for these costs will help you navigate the selling process more effectively and make informed decisions based on your financial situation and the local real estate market dynamics.
