Selling a house comes with its share of hidden or unhidden cost just like there is a cost involved while purchasing a home. The cost involved when selling a home is also termed as the closing costs and at the time of final settlement, all the closing fees is paid which results in amount credited into account is not the same as the listed selling price of home. Depending on the location of home, closing cost or additional charges may account for up to 10% of the selling price of home and seller should therefore keep in mind and be well versed of the closing costs associated with selling of home, unless you approach houston home buyers to avoid some of the typical fees.
Costs involved when selling a house: Major charges includes are:
1. Real Estate commission: It constitutes as one of the major and substantial part of additional charges that seller pays as fee to realtors and has to bear 100 percent cost. It is around 6 percent of the selling price of home. This means selling house for $200,000 cost a commission fee of $12,000.
3. Buyer’s inspection for home: Buyers inspect the house before buying it and they may report to seller for any major problems with home and ask for its fix before purchase. Fixing them is the responsibility of seller that comes at an additional cost. Any major repair could result a financial setback for the seller. It is always suggested that seller should anticipate any extra cost for fix that may incurred and be prepared before selling.
4. Stager fees: When the home is vacant, professional stagers are often required to arrange for furniture, kitchen utilities and other home items . Giving a better and attractive look to the home with items pushes the buyers for purchasing the home. The staging cost is around $600 – $700.
5. Utility bills: It does not look attractive when showing a home to buyers without heat and lighting. Once vacated, the seller may require uninterrupted light and heat connection and this again comes at additional charge.
6. Loan Payoff: For getting early out of any fixed loan against home, there is always large cost associated to breaking the loan and seller have to pay these penalty charges which is nothing but an extra expense on seller in selling home.
7. Additional Closing Costs: There are various additional charges that seller should be prepared to pay while making a plan for selling his home. These may include attorney and notary fees for carrying out legal paper work, property taxes, transfer cost and taxes, Underwriting Fee, Bank Fee for financial transactions, Administrative Fees by local authority, Title Insurance fee etc.
How sellers can avoid costs?
Avoiding some of these costs is possible by following ‘sell off yourself’ approach where seller directly works with buyer to avoid major chunks going into the hands of realtors. Direct buyers may also offer to pay some part of all costs such as home repairing, no need of stagers etc. which also make hassle free deal at the closing table.