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What Are The Costs Involved In Selling A Home?

What Are The Costs Involved In Selling A Home?

Homes can be expensive when they are first purchased due to the need for furnishings and window coverings but also because of unplanned expenses especially in the case of pre-owned properties. It is also true however that homes can be just as expensive when they're being sold due to legal requirements of inspections as well as commissions for buyer and seller agents. Understanding the various costs involved with selling a home can help prevent sticker shock and uncomfortable situations.

Most of the initial expenses will come from the need to get the property ready for sale. These types of expenses can range anywhere from fixing and replacing landscaping such as dead shrubs or paying somebody to pull weeds to interior repairs such as painting rooms or replacing broken tiles and damaged carpet. These types of expenses are hard to predict as they can vary greatly depending on the condition of the home prior to listing. With any luck the residence has been maintained and kept in top condition so only superficial repairs and subsequently minimal cost is necessary.

At this point, the initial cost outlay is determined by the homeowner and how much money they're willing to invest to present their property in the best light. It is also common for these to be the only expenses for a while as most other costs appear on the back end at closing. During the closing process many different individuals will receive payment for services rendered including but not limited to home inspection and agent commissions. If you're concerned about what the closing cost are be sure to speak with your agent straightaway to make sure there are no surprises. Most real estate transactions involving buyer and seller agents has a standardized commission of 6% to be split between the two. This commission may or may not be able to be negotiated lower depending on your personal relationship as well as your interest in possibly going the For Sale By Owner route. Even if you represent yourself as the seller agent you will more than likely still have to pay the 3% commission for the buyers agent.

A commonly overlooked closing cost when selling a home is for the title company. While an agent handles the negotiation and paperwork to process the sale as well as marketing the property and conducting open houses the title company makes sure it's all legal. Their services normally include a complete title search to make sure there are no liens or property taxes owed which could adversely affect the sale. They also work directly with the realtor to clarify any property line disputes or answer any questions or provide disclosures which should be related to the home buyer.

Typically there are many costs involved when selling a home and if this is a concern be sure to ask as many questions as possible to get a clear picture. Real estate agents are licensed and have a fiduciary responsibility to properly represent their clients best interests. To prevent feeling like you've been ripped off asked for a complete outline of all fees associated with the sale of your home so you have a better idea of what to expect. You may or may not be successful when trying to save money and cut costs but if you know what the costs are then you stand a chance at working something out. Be sure to thoroughly read all documentation before signing anything as property sales are legally binding contracts and once the terms are agreed to you will be obligated to pay any costs incurred in the selling of a home.