If you are selling your home and you aren’t upside-down (owing more on your mortgage than you can sell the house for), you are probably looking forward to that check you’ll be receiving after closing. Maybe you have earmarked that money for the purchase of a new home, or else you have something big in mind: a new car, or a luxe vacation. But, as the old saying goes, don’t go counting your chickens before they hatch. The actual amount you will receive after the sale of your house is not as simple an equation as sales price minus your mortgage amount. There are a number of expenses that sellers face when unloading a home. Find out more about the hidden costs that sellers face, and how you can minimize these expenses on your end.
1. First of all, there are utilities to consider.
Just because you move out of a house doesn’t mean you can or should turn the power and water off. Not only do you want buyers to see that the home is fully functional, but keeping utilities on can also help prevent other problems. If you turn the A/C off, for instance, mold could start growing. This will surely get you dinged at a home inspection. If you turn off the water and the sprinklers can’t run, you could soon find yourself with a highly unattractive, very dead lawn. It’s best to keep the water and power on until the buyers’ final walk-through, which is usually right before or the day of closing.
2. Also consider the costs of making your home picture-perfect to put it up for sale.
A fresh coat of paint, getting the carpets steamed, replacing hardware in the kitchen… all of this adds up. Much of it can add value to your home, but some of these things are costs that a buyer just has to accept and eat. Again, you don’t want to get nailed on a home inspection, so factor in the costs of any significant repairs or cosmetic fixes.
3. There are also seller credits, which factor into many purchases even in the heartiest seller’s market.
Buyers can receive credits for many things - repairs on the home that were not completed before the sale, for instance, or help with closing costs. Lenders generally cap the total amount that sellers can help the buyer at 3 to 6 percent, depending on the state in which you live. You should also consider agent commissions.
These are just a few of the costs that sellers can encounter when selling a home. Don’t fall into the trap of thinking you are making more money than you really are. Factor for these costs upfront and you’ll have peace of mind when that fateful check arrives.
