An article going over the expenses a home seller should expect prior to and during the sale of their home.

To those who have sold a house in the past, almost all of them have eye-rolling experiences regarding the hidden or unexpected expenses they ran into during the process of selling their home. However, with the right preparation, you may be able to reduce some of these costs by handling some tasks yourself or finding the right price for the services you are seeking.

Costs Before The Sale:

1.) Repairs & Improvements:

• Paint: One of the best ways to freshen up and improve the likelihood of receiving favorable offers on the property being sold is to add a fresh coat of paint to your home. If you’ve recently painted your home, you may be all set. However, if you choose bold or unique colors, it may be a good idea to choose more neutral colors for your home. Doing this yourself can save some expenses as hiring a company to do so can rack up in the thousands of dollars depending on the size of your home. 

• Window Cleaning: Making those windows sparkle can have a great effect on the impression your property gives off to potential buyers. The cleaner windows can also allow for better lighting on the inside of the home. Additionally, if you get to the higher or out-of-the-way panes of glass this can give an unconscious impression of cleanliness and care for the property. If you don’t mind putting the effort in or potential heights, you can save yourself some money by handling this yourself as window cleaners can range from under a hundred to multiple hundreds depending on the height and amount of windows on your property.

• Landscaping: The curb appeal of the property trying to be sold can be heavily increased by investing money or effort into adding greenery to the property. However, if you’ve already invested into the greenery or planting of your yard then it would be wise to either hire a landscaper or take the time to tidy up the front of the property to the best of your ability. 

• Repairs: Making general repairs in the home can heavily increase the odds of getting more favorable offers on the property trying to be sold. Which repairs to leave for the buyer can be a whole other discussion on its own, however, going around the house to repair squeaky doors and cabinets,  replacing burnt-out lightbulbs, and other small repairs of that kind can make house showings go smoother and help ensure better offers on the property.

The list above only covers a few of the things that can be done that will help increase the odds of receiving more favorable offers on the home trying to be sold. Readying a home for sale can be a lengthy and tedious task but if tackled with preparation and patience can make the difference between settling on received offers or deciding which favorable offer to take.  

The Home Staging

This process will follow the repair and improvements preparations and contains its own set of challenges and expenses. This part of the process can be tedious and require a lot of time depending on the market the property is being sold in but is paramount in finding the right buyer. 

• Home Staging: This step can require a certain eye and expertise so finding an agent or hiring someone to help you along this part of the process may be a good decision. The stager will help you declutter, organize, and replace or get furniture that will maximize the effect of the staging. Depending on your situation, being moved out of the home may be the best decision to maximize the effect your showings will have. 

• Lights and Heat: If the decision is right for your situation and you are able to move out of the home during the staging process of the property then an expense you’ll want to expect is the lights, heat, and air conditioning that will be present during these home showings. 

• Extra Homeowner’s Insurance: Another expense to expect if you are in a situation where moving out during the showing process is possible is the possible expense of needing to acquire extra insurance during the vacancy of the home. Check with your carrier to see if this coverage is an expense you’ll need to expect! 

• Pre-Inspection Reports: Although there are states where this part isn’t required and in most parts of the United States this isn’t even expected. However, there are situations where hiring an inspector to check the general condition of the home would be advantageous. If your home is an older home then checking the general condition may be the right decision

Costs of Closing:

Although many of these costs won’t come straight out of your pocket, these expenses are something to consider when looking at offers as most of them will come out of the sale proceedings.

• Commissions: The decision to work with a real estate agent can simplify and increase the results of the home sale in general, however, one expense to expect is the commission price that will come from both the buyers and the selling agent for your home. 

• Closing Costs & Credits: Depending on the market, the traditions of the area, or negotiations by the buyer you may have to cover some standard costs of closing the deal. Some of these costs could include fees to the escrow company, appraisal costs, or the recording and transfer costs of the property. 

• Transfer Tax: Depending on the state you’re in, you may have to pay for the transfer of the property which can account for a few percent of the sale proceedings. Tucson, Arizona is one of thirteen states that doesn’t require it, however. 

• Property Tax: If you haven’t paid the property tax on your home before the sale, you will probably be charged a prorated amount for the home. 

• Capital Gains Tax: Depending on the price of the property being sold and weighing in the prices of the expenses of the home sale,  you may be required to pay this tax. However, if the total is under $250,000 or $500,000 if married or filing jointly, you will not be required to pay this tax.

This list doesn’t account for all of the costs that may be hiding within the sale of your home but gives you an idea of the sort of expenses you may expect to owe at the closing of the home sale. Although it can be a price tag attached, it is always a great idea to get a real estate agent to help you find all the fees and expenses that may be hiding within the sale of the property.