Homeownership comes with its fair share of excitement and financial surprises. Often, you discover that owning a house is more expensive than you’d initially budgeted. Eventually, however, you find a comfortable rhythm and can afford your house. Life, in all its unpredictability, might then necessitate the quick sale of your home.
Looking at equivalent home sales within your neighborhood might have you seeing green. If you’ve owned your home for a couple of years, then it’s likely you’ve accumulated equity so it looks like you’ll be pocketing a considerable profit at the sale’s close. Reality quickly dawns on you when you uncover, in addition to the hidden costs of owning a house, the concealed costs of selling one too!
1. UNFORESEEN EXPENSES
You’ve no doubt experienced the closing fees involved with purchasing a house. These same kinds of costs – including commission for the realtor, fees to the service handling the closing paperwork, and potential prepayment penalties on your mortgage – are also present when selling a house. These costs can significantly reduce your projected profit. It’s wise to do some research and ask around to ensure you don’t end up paying more than necessary.
2. STORAGE AND ORGANIZATION
Over the years, you might have collected a sizable amount of belongings. An uncluttered house often sells quicker. Overfilled closets and disorganized shelves can be off-putting to potential buyers, prompting them to look elsewhere. Before placing your house on the market, consider organizing it to appeal more to potential buyers. You might need to part with some items, maybe even renting a storage facility, an expense that can add up.
3. REPAIRS
Regardless of how well you’ve taken care of your house, there will likely be some things needing attention before potential buyers view it. Repair anything you can, but don’t start repairs you’re unsure about as this will likely end with an even more expensive professional repair. It’s Murphy’s Law: if something can go wrong, it will. When you list your home for sale, be ready for something to break.
4. REPAINTING
While painting the entire house before selling it is common practice, it might not necessarily be crucial. If the walls are damaged or the paint is chipped, your Realtor might recommend a few coats. Handling this task yourself can save you money.
5. DISPOSING OF OLD ITEMS
If you’re moving across the country, you might want to take only the essential items. As you start packing, you realize you’ve got things to throw away which will add to your disposal expenses.
6. ALLOWANCES
You might end up accepting an offer less than the listed price of the home. That’s where allowances come in, like a flooring allowance if the tiles or hardwood need replacing.
7. MOVING EXPENSES
After selling your house, you’re left with moving costs which can vary greatly depending on the distance and belongings quantity.
8. PET CARE
A house without a pet is generally more appealing to buyers, and so pet care becomes another cost sellers encounter.
9. STAGING
It might not be necessary to hire professional stagers for your house. However, a touch of staging geared towards consistent buyer feedback can really make a difference.
Remember, selling your house doesn’t translate into instant returns. Prepare for these hidden costs and speak to your Realtor about prioritizing costs. Consult friends for their honest opinions as potential buyers, and you’ll be better poised to invest wisely.
