- SUMMARY
Selling a home, while potentially lucrative, can also carry significant hidden costs.
Firstly, sellers commonly incur expenses amounting to 6-10% of the sale price.
This includes commissions, legal fees, and potential upfront repair costs.
Secondly, staging the home to enhance its appeal can cost thousands of dollars.
Additionally, repairs and upgrades may be necessary depending on market conditions.
Thirdly, title insurance provides protection from legal issues and financial losses.
The premium for this insurance can also add to the seller’s expenses.
Settlement services, often handled by escrow or closing companies, may incur charges of 1-2% of the sale price.
This varies by state and is sometimes shared between the seller and buyer.
Lastly, transfer taxes arise with any change of property ownership.
These fees differ depending on the jurisdiction.
However, a recent National Association of Realtors ruling has the potential to change the commission structure for sellers.
It could grant them more negotiating power and potentially reduce the commission percentage they pay to their real estate agents.
- Key Takeaways
Sellers must pay 6-10% of the sale price in expenses.
This includes commissions, legal fees, and potential upfront repair costs.
Preparing the home for sale by repairing and staging can be equally costly.
Staging the home to enhance its appeal can cost thousands of dollars, and repairs and upgrades may be necessary depending on market conditions.
Owners may incur title insurance premiums, settlement service costs, and transfer taxes during home sales.
Title insurance provides protection from legal issues and financial losses, settlement services may charge 1-2% of the sale price, and transfer taxes vary depending on the jurisdiction.