Can you afford to sell? It’s an important question
painting, landscaping, repairs, staging to make the house more presentable — none of these will add much, if anything, to your home’s value, but they should help sell the place more quickly.
If you have a mortgage, you’ll have to pay the balance at closing. But the equity you’ve built up in your home should ease the sting, especially if you’ve owned it for five years or more. Home equity loans and second mortgages also have to be paid off, and your lender may charge a fee to do so.
Typically 5 percent or 6 percent of the selling price, this amount will be split between your agent and the buyer’s. On a $300,000 selling price, a 5 percent commission comes out to $15,000. But commissions are totally negotiable.
It’s smart to get an independent home inspection to find any major issues and get them fixed — before a potential buyer’s inspector finds them and uses them as bargaining tools. Figure on spending $500 to $700.
Yes, sellers have closing costs. And depending on how strong or slow the market is, the buyers may demand that you also pay some, or all, of theirs. Under this broad heading, there are recording fees, title insurance, warranty, settlement fees, appraisal fees, lawyers’ charges and settlement agent’s fees, along with bills for property taxes, utilities and homeowner’s association dues for the months you lived in the house. Together, these could add up to as much as 10 percent of the selling price.
There’s no way to estimate this in advance, but anything your buyer wants fixed means money out of your pocket. Big-ticket items like termite remediation or roof repairs are obviously expensive, but even minor fixes can add up.
You can save beaucoup bucks by “hiring” friends and family help you move (a few six-packs and a couple of pizzas should do the trick). Ditto if you rent a van. If you employ professional movers, expect to pay a couple of thousand, easily — more, if you’re moving across state lines.
Many power and water companies require new customers to put up a deposit when they open accounts, especially if you are moving to another city or state. You’ll get it back when you move out. But for right now, it’s cash out of your pocket.
Cross this item out if you aren’t moving far. But if you are moving long-distance, figure on racking up some significant dollars for hotels and meals.