5 Hidden Expenses You'll Have To Pay When You Sell Your House
Selling a house is hard work. Even when you have it listed with a real estate agent, there’s still a lot of effort required on your part as the seller.
Unfortunately, that effort might cost you money. Nevertheless, we all get excited once a buyer finally agrees to purchase our home.
Some sellers struggle for months or even years before the property eventually sells.
Some sellers are caught off guard by the time they’re faced with hidden or unexpected costs.
When it comes to the costs and expenses of selling a home, ignorance is not bliss. It always pays to know about those pesky little hidden fees that come with selling a house before it’s too late.
Here’s a quick overview of the hidden expenses you’ll have to pay when you sell your house.
If you haven’t looked into closing costs, you might be in for a nasty surprise. Hopefully, you’ve still got time to pull things together before the deal goes too far.
Closing costs take many sellers by surprise, especially those who haven’t looked into them to know how much they should be expecting to pay.
When you hear the term closing costs, you might think it’s just some little cluster of fees amounting to a few hundred bucks or less. If only that were the case.
Closing costs can leave you biting off more than you can chew as a seller, which is painfully ironic in a sense.
Closing costs can leave you with an expense so large that you should factor them in when pricing your home before listing it.
If you set your price too low, you could end up losing more money than you can afford to after closing. It is imperative to your success not to underestimate the closing costs, so you don’t get overwhelmed.
Closing costs in the United States can run as high as $13,000 or more.
Another expense that tends to come up unexpectedly when selling a house is repairing the property.
Although you might not think your house has any significant problems, a home inspector might think otherwise, and if they do, you may get stuck with the cost of having the home repaired to bring it up to a suitable standard.
Buyers may make specific and potentially expensive requests that you did not anticipate. When unexpected repair costs come up, you essentially have two options.
Your first option is to cough up the money to arrange for the repairs that have been requested.
Your second option is to let the deal go.
Depending on their circumstances, most people end up choosing the first option.
Taxes and Utilities
One of the costs you could get stuck with somewhat unexpectedly as a seller is the taxes for the remainder of the year. For example, if you sell the home in the Spring, you might have to pay the cost of both the Fall and Winter taxes, depending on how adept your agent is at negotiating.
Taxes aside, you might also run into unexpected costs that you didn’t consider if you have already moved into your new house while listing the old one.
No one wants to think it could take months or over a year to sell a house, but it’s entirely possible depending on market conditions.
If you’ve already moved into your new home, you’ll still have to pay the utilities on the old house until it sells.
A Home Warranty
Home warranties typically act as a form of insurance against the potential cost for repairs should they come up after the new homeowner has moved in. A home warranty can be designed to cover the cost of repairs on anything from roofing to appliances.
When a home warranty is added into the mix, the seller will have to dole out even more money in closing costs. Home warranties are not necessary for the sale of a property, but if you agree to it in the terms, you can get stuck paying for it.
Seller concessions are another thing to watch out for. These expenses can cost you big time! So what are seller concessions, you ask?
They’re specific items in the closing costs that the buyer may ask the seller to pay.
What can they include? All kinds of things! When a buyer asks for seller concessions, they can request you pay for things like recording fees, inspection fees, and title insurance.
Buyers might also request that you also pay their attorney fees if they have an attorney review the closing documents with them. You might even get roped into paying for the buyer’s mortgage discount fees!
Now that you know more about what kind of fees you can expect when selling a home, you’ll be in a better position to negotiate.
For example, you’ll be able to avoid things like home warranties.
You can also give yourself a head start on putting some money aside to cover closing costs so that they won’t be as overwhelming when they come up.
Want to sell your house without all the headaches and surprises?
Consider getting a cash offer directly from Contenza Properties!