Q: What are the expenses involved in selling a home?
A: The estimated total cost of selling a home is typically around 10-12% of the sale price.
Here's a detailed breakdown using data from 2022:
- Agent commissions: These usually account for 5-6% of the sale price and are divided between the buyer's agent and the seller's agent.
- Attorney fees, transfer taxes, and other administrative costs: Approximately 1% of the sale price is allocated to cover these expenses.
- Home repairs and inspection requests: The cost of repairs can vary widely, ranging from $100 to $10,000. Common repairs found during home inspections include adjusting sticky doors, fixing leaky faucets, and addressing shower head issues.
Optional expenses to consider:
- Moving: If you hire a two-person team for a local move, the average cost is around $1,400. For a cross-country move, you can expect to pay between $2,200 and $5,700. Alternatively, you can save money by enlisting the help of friends and handling the move yourself.
- Interior staging and exterior landscaping: According to 18% of sellers' agents, staging a home can increase its value by 6-10%. Allocating approximately 2% of the sale price for staging and landscaping can be worthwhile investments.
- Seller concessions: To make the deal more attractive, you might consider assisting the buyer with inspection fees, processing fees, or other costs. Typically, this amounts to no more than 2% of the sale price.
- Home warranty: Some sellers offer buyers a warranty to provide peace of mind about potential repair costs. The cost of a home warranty typically ranges from $300 to $500.
A common mistake made by sellers is investing in unnecessary improvements before involving an agent. It is advisable to consult with an agent early on to focus your efforts and maximize your home's value. If you need assistance, feel free to reach out to me via direct message today.
Forbes: "Movers and Packers Cost"
Pennsylvania Association of Realtors: "What Are the Most Common Repairs That Show Up in Home Inspections?"
Rocket Homes Blog: "Cost of Selling a House"