Regardless of where you’re moving next, selling your home marks the beginning of a new chapter in your life. If you’re looking to sell your home soon, It’s important to recognize the involved costs before you enter the market.
From value-boosting upgrades to taxes, fees, and agent commissions, we’ve put together a quick overview of some common costs you may encounter when selling your property.
Of course, no two properties are the same, and costs will range based on each seller’s unique circumstances. For a more detailed analysis, ask your real estate agent. They can assess your home’s existing value and provide you with a more accurate estimate of additional costs.
Looking for an experienced agent who can guarantee the successful sale of your home? We can help. Explore our approach to selling here.
In some cases, your home may need to undergo upgrades or renovations before it can be sold.
This could include anything from foundational repairs to replacing kitchen appliances. Of course, upgrade costs will vary based on the unique condition of your home. However, most agents recommend spending no more than 1-2% of your property’s total value on preparatory home improvements.
If you think your home will require upgrades before you’re ready to sell, ask your real estate agent. They can determine which items are essential
In today’s market staging is a critical part of the selling process. Great staging helps you attract more potential buyers. Plus, staged homes typically sell faster and for more money than unstaged homes.
How much you’ll need to spend on staging will vary based on local design trends and your home’s existing furnishings. That being said, many sellers opt to stage based on the ‘3X’ rule. Meaning however much you choose to invest in staging, you can expect to add 3 times that number to the sale value of your home. For example, if you invest $10,000 in the staging process, you can see a listing value increase of $30,000.
Real Estate Agent Commissions
One of the biggest costs you’ll incur as a seller is agent fees. In Florida real estate transactions, the seller is responsible for paying agent fees, which are then split between the agents of the buyer and seller. Your costs will be unique to your listing agreement, however, agent fees typically cost between 3% and 7% of a home’s final sale price.
In Lake Worth, you’ll also be required to pay HST on your agent commissions. Keep this in mind when budgeting for your home sale.
In addition to a real estate agent, selling your home will also require working with a lawyer.
For most sellers, a budget of $1,500 is an adequate amount for covering the legal fees of their home sale. However, legal costs can be more expensive if a property or agreement requires any special considerations.
If you’re selling a condo unit, you’ll be required to order a status certificate to demonstrate the physical condition of the building. Although exact costs will depend on the property management company, status certificates typically cost between $100 and $200.
Land Transfer Taxes
In Lake Worth, as the seller, you are not responsible for paying the land transfer tax following the sale of your home. However, if you choose to buy again after you sell, you will be required to cover this cost for your new property.
Should I Just Sell my House Myself to Save Money?
In a hot market, many sellers may think they can sell their house themselves to avoid the commission fees.
However, most people don’t realize that if you sell your house on your own, you still have to pay for the buyer’s agent’s brokerage fee.
“Since over 93% of active buyers have a real estate agent representing them, it’s the only way to attract these agents—and thus their buyers—to even consider your home,” Nelson says.
What about that cash they would still be saving by selling their home as “For Sale by Owner,” or FSBO?
Consider what your agent brings to the party:
- Marketing, signs, advertising support, and professional photography
- The time and “hassle factor” savings of not having to be present for showings, manage calls, host an open house, set up legal representation for paperwork, and conduct the negotiations
- The legal protection that comes with working with a licensed real estate agent
- The professional market knowledge that can help you wisely price the house
- Negotiating expertise that allows your agent to extract the best terms and price from the buyer
- A wider pool of potential buyers comes with listing your home on the MLS
- Access to other agents, who have or know potential buyers. In fact, notes Nelson, many sales can happen before a home is even listed because agents will reach out to one another.
“In the end, that ‘savings’ to list a home yourself doesn’t usually save you any money,” Nelson says. “In fact, it can cost you in terms of time, stress, and often a lower price for your home.”
How We Sell
While selling your home comes with some risks and variables, we strive to make the process as relaxed as possible for our clients. If you choose to work with our team, we guarantee to sell your home. If for any reason it doesn’t sell, we will buy it from you! Your Home Sold Guaranteed
approach means the sale of your home will be successful regardless of external market conditions.
Ready to begin your selling journey? Get in touch
with us today to get started.