Sale Home Norfolk Virginia

Discover The Real Costs Behind Selling Your Home

Most people who are selling their home have no real idea how much it cost to sell that home? If you want to know the true costs of you selling your home, you must include several things:

•  Closing costs                                            
• Holding costs
• Realtors’ commission
• Repairs

Don’t forget the discount to get the entire process going.

 How Much Money Will You Need To Pay

Closing Costs – When you’re closing on a home, there are all kinds of fees attached to it. You must deal with the realtor’s title company and pay their fees. Then you must deal with the mortgage company and deal with their fees. There’s also the possibility of miscellaneous fees during the closing process. Closing cost fees are generally three to five percent the home’s sale price. If you’ve sold your home for  $150,000, this could be an extra $6,000 to $10,000.

Hidden Costs – You have the obvious costs when selling your home but there are also hidden costs attached to selling your home. Holding costs is money you pay when your house is in the process of being sold. When you put your home up for sale, you still have to pay the insurance, maintenance, mortgage and taxes. If the market is slow (as it is presently), it could be six to 12 months before you actually have a buyer. When you do have a purchase agreement, it may be 30, 60 or 90 days before you close on the deal and have your money.

Realtors’ Commission – When you choose to use a realtor to sell your home, you’ll need to add more to your home’s asking price because you want it to cover their commission. If you don’t, you may lose money. Think of it this way… if you sold your home for $150,000, they make $9,000 from it.

 Repairs – Many people tend to overlook this important detail but you may still have to shell out for the repairs and/or upgrades to get your home ready for the market. These can be quite costly and will even take time to get done. Some updates you will need to contend with are:

• Carpeting
• Flooring
• Landscape work
• Painting
• Remodeling (minor)

If you need to do major repairs such as the plumbing or electrical wiring, this can easily run you into thousands of dollars.

Depending on where you live, some sales prices range anywhere from 88 to 97 percent the asking price. Since there are many homes for sale in one area, it’s a buyers’ market. If you desire to sell your home, you’ll need to reduce your asking price, which may cost you more money. Here’s some math to understand what it would cost you to get rid of your home using a realtor:

• - You have an asking price of $150,000.
• The sale price of your home is four percent lower so subtract four percent from the – $150,000. This brings you down to $144,000.
• Take the sale price and subtract six percent for the realtor’s commission. You’ll pay $8,640.
• Now take away another three percent, which makes $4,320 for the closing costs.
• Finally, you’ll need to subtract four percent for repair costs, making it $5,760.

When you subtract all of these from the home’s $144,000 sale price, you are left over with $125,280. This is your net income, provided you could sell your home. Bear in mind that this doesn’t take into account any monthly expenditure you made as the home sat on the real estate market. In all, it’s not that sensible. For this reason, you need to find other options if you’re looking to get rid of your home. Since traditional methods won’t work presently, it’s time to look for alternative methods.