Selling your house? Be prepared for these costs
The median home-sale price for the month of January was $306,400
Experts predict the housing market will heat up in the spring of 2020, which means it could be a perfect time to sell your home.
The median home-sale price for the month of January was $306,400.
While you will hopefully make a profit on your sale, you will likely owe some money, including everything from commissions to taxes.
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Here’s a look at some of the costs you are likely to incur if you plan on selling your home, according to online real estate site Zillow:
- Marketing costs: 3 percent of home sale price.
- Staging for sale: $1,805.
- Professional photos: $150-$200.
- Home improvement (carpet cleaning, painting, etc.): $3,985.
- Landscaping: $145 Pre-inspection: $250-$700.
- Buyer concessions during negotiation: 1 percent of the sale price.
- Agent commission: About 6 percent of the sale price.
- Transfer tax: Depends on the state.
- Title insurance: $1,000-$4,000.
- Escrow fees: $500-$2,000.
- Prorated property taxes and HOA fees: Vary.
- Attorney fees: $500-$1,500.
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You may also need to pay:
- Any outstanding mortgage balance, prorated to the date of sale.
- Capital gains tax.
As an example, Zillow says a house bought for $200,000 and sold five years later for $220,000 is likely to result in net proceeds of between $24,742 and $29,392 when all possible costs are factored in.
As previously reported by FOX Business, sellers were expected to experience trouble in the housing market this year, except for those in the entry-level market. While inventory in the luxury home sector, for example, is building, there is a lack of available homes at the more affordable end of the spectrum, which is likely to buoy prices.