{"id":1813,"date":"2016-11-20T05:20:32","date_gmt":"2016-11-20T05:20:32","guid":{"rendered":"https:\/\/thezakariagroup.com\/?p=1813"},"modified":"2016-11-20T05:20:32","modified_gmt":"2016-11-20T05:20:32","slug":"7-hidden-costs-of-selling-a-home","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/7-hidden-costs-of-selling-a-home\/","title":{"rendered":"7 Hidden Costs of Selling a Home"},"content":{"rendered":"

Ready to put your home on the market? You\u2019re probably already picturing the dollars pouring into your bank account\u2014after all, home prices are rising in many markets across the country, and odds are pretty good that your home has appreciated over the years. So it only makes sense that you\u2019d stand to make a profit, right?.<\/p>\n

But what\u2019s easy to forget is selling a home costs<\/em> money, too\u2014sometimes a lot of money. This is what\u2019s known as a reality check.<\/p>\n

There are some obvious costs you\u2019ve probably anticipated, like commissions to the listing and buyer\u2019s agents (which typically amount to 5% to 6% of your home\u2019s price). But there is also a variety of smaller expenses to factor in. Here\u2019s where your money might go, how much you should expect to pay, and some real ways to curb these costs.<\/p>\n

Repairs<\/h2>\n

If you\u2019ve let your home\u2019s maintenance<\/a> lapse, you may need to hire a handyman or a general contractor (depending on the nature of the work) to get your property ready to put on the market. This isn\u2019t the time to cut corners.<\/p>\n

If you cheap out, buyers are going to catch shoddy repairs during the home inspection and you\u2019ll wind up paying more money than if you had used a good handyman the first time. Walk through your home, and draw up\u00a0a list of noticeable problem areas<\/a>\u00a0such as rotted wood, cracks in the ceiling, or chipped paint. These may seem like minor issues, but they\u2019re worth fixing. \u00a0If buyers see small issues, they could assume there are bigger problems beneath the surface.<\/p>\n

In terms of\u00a0making major repairs, you\u2019re probably better off lowering the listing price\u2014or giving the buyer a credit at closing\u2014instead of doing the work yourself. \u00a0 Replacing a roof, for example, costs on average $20,142, but offers only a $14,446 resale value\u2014meaning you\u2019ll recoup only 72% of the cost, according to Remodeling magazine\u2019s 2016 Cost vs. Value Report<\/a>.<\/p>\n

Professional photographs<\/h2>\n

Four in 10 home buyers start their search by looking at properties online, according to the National Association of Realtors\u00ae\u2019 2015 Real Estate in a Digital Age Report<\/a>. And photos are overwhelmingly viewed first, according to a study by Old Dominion University.\u00a0Therefore, it\u2019s worth paying for a professional photographer. Granted, it would be cheaper to let your agent take pictures; so, if your agent offers this, look at photos from her\u00a0previous listings to gauge the quality of the work.<\/p>\n

While the cost varies by area and the size of your property, you can expect to pay $500 to $1,000; Professional photos and videos are usually covered by the listing agent.<\/p>\n

Landscaping<\/h2>\n

Curb appeal is what gets buyers in the door\u2014and improving your landscaping can raise your home\u2019s value by up to 12%, according to research from Virginia Tech<\/a>. While prices vary, the average cost of a full-on landscaping job<\/a>\u2014flower beds, plants, trees from scratch\u2014is around $3,239, according to HomeAdvisor. That said, you can save on these costs by doing at least some of the work yourself.<\/p>\n

Go to your local Home Depot and pick up new mulch and seasonal flowers to give the exterior a pop of color. \u00a0Take the time to remove weeds, trim hedges, and (of course) mow the lawn.<\/p>\n

Staging<\/h2>\n

Buyers need to be able to visualize what it will be like living in the home. Hence, staging\u2014where you hire a professional to arrange\u00a0furniture and other items in a home to make it more appealing\u2014is a good idea.\u00a0If you\u2019re selling a vacant home, staging could be key.<\/p>\n

Staging services and prices range widely, but a 2015 NAR\u00a0survey<\/a>\u00a0pegged the median cost at $675\u2014and one-third of buyer\u2019s agents said they believe staging a home increases the price that buyers are willing to pay by up to 5%. Don\u2019t have much left in the budget? \u00a0Just introducing small items, like a bowl of fruit in the kitchen or towels and candles in the bathroom, can entice buyers.<\/p>\n

Utilities<\/h2>\n

If you\u2019ve already moved into your new home, you\u2019ll want to pay to keep the electricity on while your property is on the market. \u00a0No buyer wants to walk into a hot or cold house, or a house that\u2019s pitch-black. \u00a0Also, if you turn off the air conditioning during the summer, you\u2019re putting your home at risk for mold\u2014and mold remediation costs on average $2,158, according to\u00a0HomeAdvisor.com<\/a>.<\/p>\n

Capital gains taxes<\/h2>\n

If your home has appreciated a lot, you may have to pay capital gains tax<\/a>. This tax is\u00a0based on the difference between your home\u2019s purchase and selling prices, minus\u00a0the value of documented improvements such as\u00a0an addition (but not maintenance such as a roof replacement). So, if you\u2019re in a hot market and your\u00a0profits are\u00a0substantial,\u00a0Uncle Sam may take a small chunk\u00a0when April rolls around.<\/p>\n

The good news is, this rule comes with substantial exemptions.\u00a0If you\u2019re selling your primary residence as a married couple filing taxes jointly, you can exclude up to $500,000 of profit from the sale of your home; if you\u2019re single, it\u2019s $250,000. Talk to your accountant or a tax preparer for more information.<\/p>\n

Closing costs<\/h2>\n

Closing costs will likely be your second-biggest expense behind commission fees. You can expect to spend roughly 2% of your home\u2019s sale price.<\/p>\n

The buyer typically chooses the closing company, and closing costs<\/a> tend to be fixed, including transfer taxes, mortgage processing fees, escrow fees, and notary fees. You\u2019ll also pay at closing any outstanding property taxes, a prorated share of the water and sewage bills (depending on when you sell), and the remainder of your mortgage.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ready to put your home on the market? You\u2019re probably already picturing the dollars pouring into your bank account\u2014after all, home prices are rising in many markets across the country, and odds are pretty good that your home has appreciated over the years. So it only makes sense that you\u2019d stand to make a profit, […]<\/p>\n","protected":false},"author":5,"featured_media":1814,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[8],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\n7 Hidden Costs of Selling a Home - The Zakaria Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thezakariagroup.com\/7-hidden-costs-of-selling-a-home\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"7 Hidden Costs of Selling a Home - The Zakaria Group\" \/>\n<meta property=\"og:description\" content=\"Ready to put your home on the market? You\u2019re probably already picturing the dollars pouring into your bank account\u2014after all, home prices are rising in many markets across the country, and odds are pretty good that your home has appreciated over the years. 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