Most home sellers want to make a profit when they sell a home. No matter how you go through the process you will have some expenses along the way associated with selling the house. People know about the expenses like real estate commission, insurance, and escrow fees, but they might not know about the upfront fees that go on when the sale happens.
When home sellers want to sell a home, many hope for a profit. However, no matter how you conduct the sale, there will be expenses as you go through the process. People expect some expenses when it comes to closing a home such as the real estate commission fee or the insurance and escrow fees, but what about the upfront fees that are needed before the sale happens?
Keep Receipts
Before we list the most common expenses before a sale, it is important to state that you should keep all the receipts before and during the home sale process. If you end up at owing capital gains tax on the property, then these receipts can help you lower the amount that you would owe the IRS.
Inspection Reports and Repairs
Most states do not require a home inspection report and it is something that many buyers will choose to do themselves. But if you have your home inspected before the buyer does it will help to show them what repairs need to be made and it will help you from being blindsided by a buyer with their own inspection report asking you to lower the price because of certain repairs that need to be made. You will have a home inspector take a look at your house and tell you what repairs need to be made in order to sell the house so you can start fixing them before you actually list your home.
Some inspectors can also recommend contract firms who can help you fix larger repairs. No matter whether you use a contractor or not, it will cost money in order to get the repairs fixed. Something as simple as a leaky faucet may not take much, but older houses that may have termite issues have repair costs that are a lot more. The cost of these repairs is highly variable depending upon the types of repairs listed, but in general, a home inspection costs about 200 dollars.
Cleaning Expenses
Depending upon the state of your home, you may want to hire professional cleaners to spruce up your property. If the carpet is dirty, a professional steaming is a lot less expensive than having the carpets replaced. You may need to have a professional spiff up your wooden floors, or hire a landscaping agency to trim your outdoor hedges. Depending upon how cluttered your home is, you may want to rent a storage unit for a time in order to move less used furniture and knick knacks in an effort to show off your home's square footage. There are also expenses for driveway cleaning, window washing, and pest control.
Decorating Expenses
After your home as been thoroughly cleaned, decorating or staging your home can make your home really stand out. Many rooms can be updated by a good layer of paint or an update to the lighting and faucet fixtures. Hiring a professional home stager can cost you a few thousand dollars but professional staged homes to command a greater sales price than homes otherwise undecorated. If you plan on doing the decorating yourself, you may need to buy extra furniture that fits in with the contemporary theme. You can purchase these at yard sales and thrift store or any secondhand place for cheaper than new furniture. These are also great locations to purchase accents on the cheap as well to highlight a room's décor. Don't forget about the outside. Fresh mulch on your outdoor flowerbeds can really make flowers stand out.
Misc Expenses
If you have to move out of your home early you will want to get vacant homeowner's insurance in case your regular insurance does not cover it. You will also have to pay for the cost of the utilities while the home is on the market so you can have proper showings on the home.
Is It Possible For Vacant Houses To Hurt An Entire Block?
The process of selling your home can be a very complicated thing, and if you have distressed homes in your area it will make it even harder because they can lower the value of your house. Sadly, in today's market, it is a very real possibility even if your house is in great condition, if you are in an area that has a high number of foreclosures and short sales, that your house will suffer right along with those houses.
Do You Know What Happens During The Foreclosure Process
There are not a lot of people that think about the possibility of losing a house to foreclosure when they first purchase the home. The process of foreclosures is not something that happens right away and in the following article we will talk about the various steps that a lending institution can take during the process.
What Repairs Should I Make To Get The Highest Return On Investment
You can tell that home repairs shows have been gaining in popularity due to the large number of shows that show off expensive, over the top repairs. Even if the upgrade is able to get the buyer to say wow the real question is if the expense will actually garner you more money? You do not want to put lots of cash into upgrading something only to find out that you have actually caused your home to be less marketable to home buyers.
