Selling a house can cost a lot more than you may think. There are many types of cost — repair costs, holding costs, closing costs — as well as any many of unforeseen costs than tend to arise.
If you are looking to sell your house, you would be fully aware of what will be involved. Below is a summary from an excellent article on the subject.
* Repairs and upgrade costs: These are very important, and can vary significantly depending on what is required. Common concerns with buyers include painting, flooring, rotten wood, landscaping, condition and age of roof and the heating & air equipment, appliances, etc. Beyond just repairs, if you want your house to sell quickly, you also need to consider needed upgrades to the kitchen, baths, and other areas of the house. Today’s buyers prefer things like solid granite surfaces and new stainless steel appliances.
* Inspection costs: In most cases, you must hire professional house and insect inspectors to check for damage and required repairs. Buyers want to know what they are getting into when they buy a house. This will cost hundreds of dollars.
* Utility costs: This includes primarily gas and electric for lighting and heating/air conditioning, in addition to base water charges. Yes, vacant houses do incur utility costs. You will need to keep the utilities on, and the interior of the house comfortable, while it is on the market and buyers are looking at it.
* Additional Insurance costs: Did you know that insurance is a lot more expensive for vacant houses? Did you know if your house is vacant, and you have NOT told your insurance company that it is vacant, they will likely NOT cover you in the event of a claim?
* Closing costs: Real estate agent commissions are typically 6%, and are paid by the seller. 3% goes to the listing agent, and 3% goes to the buyer’s agent. In lower priced homes, the percentage can be even higher.
* More Closing costs: Buyer’s loan closing costs are typically paid the seller (yes, you read that correctly). These can run thousands of dollars. We have seen some buyers that need the seller to pay as much as 6% of the purchase price towards these costs (equal to the Realtor’s commissions!). In today’s market, do NOT expect to get away with the buyer paying all closing costs. In addition to the loan closing costs, there are title insurance fees, attorneys fees, and other miscellaneous fees.
* Home warranty: The buyer will certainly demand that you pay for a home warranty on the house. This typically runs about $500.
* Capital Gains tax: If your house was not your primary residence for 2 of the last 5 years, or if it exceeds a certain threshold, you may also be liable to pay capital gains tax on the sale. Speak with an accountant regarding this tax.
* Moving costs: Don’t forget the cost of having someone move and/or store your belongings. This can be quite expensive, often into the thousands of dollars.
If dealing with the hassle and expense of selling your house this way it not something that you find appealing, call us at 205-390-1050 to discuss selling your house as-is for a fair price.
We buy houses in Birmingham, Alabama and the surrounding metro area. We can close in a matter of days. You can also reach us on the web at www.WeBuyBham.com. Read our special report on selling your house for top dollar fast at www.SellHouseReport.com.