Home Sellers Costs for Selling a Home
Unbeknownst to many, home sellers incur certain costs when selling a home. Selling a home is not an easy exchange where the buyer submits the money and gets the property. Instead, selling a home is an engaging process that requires financial input from both the buyer and the seller. It is important for buyers to be aware of the costs of selling a home to avoid exploitation by agents and to plan their finances accordingly.
The seller is required to cover the agent commissions, which often add up to 5-6% of the total sale price of the home. The amount paid is split between the seller’s agent and the buyer’s agent after the sale of the home. Some home sellers try to avoid this cost by listing their property as For Sale By Owner (FSBO). If you opt for this route, you will perform a real estate agent’s work including showing the home to potential clients, negotiating deals, and closing a favorable deal.
Before putting up your Seattle mansion for sale, you should conduct a few home improvement tasks that will accentuate the beauty and functionality of the home. The first step is to clean and de-clutter the home. Deep cleaning of carpets, upholstery, and windows is preferably done by professional cleaners who deal with troubling spots and stains all around the house. House cleaning has a nation average cost of $119 while other factors such as carpet cleaning attract additional fees of about $124. You should de-clutter the house on your own since you know the items that can be disposed.
Home improvement also includes repairs and renovations in the home. Repairs range from fixing leaky roofs to damaged shingles. You may start by fixing the damaged things that you are aware of before conducting a professional home inspection, which often uncovers more damages.
Be careful that you do not immerse yourself in big renovations when trying to upgrade the home since this will cause financial strain.
The city of Seattle charges a transfer tax of about 2.03% on the sale of homes and this cost is covered by the seller. For a home valued at $426,300, the transfer tax will be $8,654. Notably, some states do not impose a transfer tax on home sellers.
Closing costs often vary depending on the state of the market in terms of who has the upper hand. In a buyer’s market, where there is a high number of Seattle lofts for sale the buyer has the upper hand. In such a case, the buyer may demand that the seller incurs some of the closing costs in order to close the deal. Some of the closing costs include attorney fees, homeowners’ association fees, property taxes, brokerage fee, escrow fee, courier fee, and title insurance.
As a seller, it is wise to quip yourself with this knowledge in order to avoid exploitation whether you are working with a real estate agent or not.