Selling a House is Not Free

   

A typical home seller mistake is assuming you won’t be spending any money during the selling process. Selling a house can end up being a costly affair, which is why you need to be prepared. A sale involves careful planning and preparation. You obviously don’t want to spend a lot of money on the house you’re trying to sell, but if you want to get a good deal, you will need to invest. Here is a list of some of the expenses you should take into account before selling your home.

Hire a Real Estate Agent

You’re most likely not a real estate agent, and you probably don’t know much about selling a house, which is why you will need a real estate agent. Agents usually get a 5-6% commission from the final selling price once the deal is closed. Shop around before settling for an agent, many of them are willing to negotiate the commission fee.

Repairs and Renovations

No house is perfect. Look around your home, and you’ll most likely find many imperfections. While you may be used to those flaws, maybe even find them charming, potential buyers won’t like them. Before listing your home, you need to make it nice and presentable. Repaint your walls, fix those faucets, and check your roof for leaks. Look at your home with a critical eye and correct any detail that you wouldn’t want to see as a buyer. Don’t try to skimp on repairs. A home inspector will look straight through them. If your home needs major repairs, you’ll be better off lowering your asking price or negotiating them into the deal. As for renovations, small changes can render excellent results. Curb appeal, is after all, fundamental to a sale. You don’t have to spend hundreds of dollars in renovating your home. You can simply paint the walls, trim the bushes, or have your carpets professionally cleaned. Doing some repairs and renovations can raise your home’s value.

Title Insurance and Home Warranty

You’re not required to provide title insurance in your sale, but it might help your home sell faster. If the buyer is getting a loan, their lender will probably ask them to get title insurance to protect their interest in the house. Maybe you can come to an arrangement together. Call Advanced Title Company at (970) 255-7677 to start the insurance process in Grand Junction. If your home is a bit older, you can offer the buyer a home warranty. This warranty will cover the repair costs if a major system or appliance breaks down in the first year of ownership. A home warranty will usually cost you around $350 to $500.

Consider Utilities

If you plan on leaving your home before putting it on the market, you need to consider you will have to pay double utilities until you sell it. You can’t possibly leave the house without electricity or water. Buyers won’t appreciate stepping into a cold (or hot) and dark house. Maybe you can program the lights and heating or air conditioner to turn themselves on before a potential buyer’s visit.

Moving Costs

Moving is not necessarily free either. You will need boxes and other supplies to pack. If you are hiring a moving company, the costs will rise. Perhaps you will rent a moving truck or ask your friends for help. Think about those expenses and follow these tips to make your move easier.

The Closing

The closing expenses are mainly paid with the proceeds of the sale. Unfortunately, this is will also be the time when you’ll be making more payments.  You will need to pay your agent five to six percent commission of the total sale and your agent will have to split that with the buyer’s agent. The agents’ commission will basically come out of your pocket. You will also need to pay the transfer tax that your city or state probably requires that you pay. Perhaps you will also need to pay for the escrow company, home appraisal, and other costs, it all depends on what you and the buyer agree to. Finally, if your sale is over $250,000, you will have to pay for capital gain taxes. Here’s a guide to help you avoid capital gains tax when selling your home.

Give Your Home a Selling Edge With Title Insurance in Grand Junction

Although you’re not obligated to buy title insurance for your house, you should consider acquiring it if you want your home to stand out. You should also buy title insurance for your new home, while you’re at it. Call Advanced Title Company at (970) 255-7677 to get ahead with the title insurance process.