Listing your home is a big decision with many costs involved. Knowing what those costs are ahead of time is the only way to budget appropriately for your next move! Check out the most common expenses and find out how much does it cost to list your home?
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How much does it really cost to list your home for sale?
01. Home Repairs- Before you list, your agent will walk your home with you and suggest repairs. Some sellers may even do a prelisting inspection to keep any inspection hurdles from slowing down the escrow process. If a buyer finds a repair needed through inspection, and you were not previously aware of it, it could be a cost you were not expecting.
02. Staging – Is your home vacant? If so, your agent may suggest staging it. It’s much easier for a potential buyer to imagine themselves in a home that is already staged. There are different types of staging from a “Home Edit”, where the stagers use the sellers furniture to create a welcoming space, all the way to a partial renovation. Including paint, flooring, and so much more.
03. Property taxes – If your tax bill has not come out for the year, the closing atty will estimate and prorate the taxes at closing. You will pay your portion of the taxes from Jan 1 until the closing date to the buyer. When the tax bill comes out for that year, the buyer will already have your portion escrowed along with what they owe!
Learning about the cost of listing your home ahead of time will keep you organized and prepared for what’s to come!
04. Commissions – Agents work on commission. Typically this commission is 6% of the home sale price with 3% going to listing broker and 3% going to selling broker. Once the broker gets paid, your agent will get a split of this amount which pays for the marketing they did, the signage, the photos, potential staging, an fmls fee and their time working for you.
05. Capital gains – When you sell a home for more than you paid for it, that counts as a capital gain and may need to be reported on your tax return. Many homeowners can exclude up to $250,000 of profit ($500,000 for married couples filing jointly) if it was your primary residence for at least two out of the previous five years.
Other costs can include Seller paid closing costs, repairs needed to be made after the inspection and other various costs. Consult with your agent to get a better idea of what your specific home sale will cost! Interested in listing your home with Sage & Cedar? Click here for a free listing guide or to reach out to a Sage & Cedar agent.