What Are The Real Costs Of Selling A Home?

Experts estimate that most people who use aof your home. Just to keep things simple, let's say
Realtor will pay as much as 10% of your sellingthat you still owe $50,000 on your current
price in costs associated with selling. The cost ofmortgage. If there's a prepayment penalty, you'll
selling a home yourself can range from 4% toneed to deduct that from your eventual sales
8% of the selling price of your home. Whenprice as well.Tip: Ask your lender to prepare a
you're estimating your expected gains, rememberpayoff statement for you to check your figures.
that the cost of selling a home can be deductedIf there is a fee charged for the service, you can
from that figure for tax purposes.To give you andeduct it as one of the costs of selling a
idea of what the costs of selling a home in thehome.230,00050,000
current market are, take a look at the180,000Repairs to Your HomeThe cost varies
information below. We've included estimated costswidely depending on the age of your home and
based on a $250,000 home sale, as well as somehow well it's been maintained. At the very least,
tips for lowering or eliminating them to lower youryou should get a home inspection to identify any
overall cost of selling your home.Salespossible problems to avoid being surprised by
commissionIf you list your home with a Realtor,them at closing. You should plan on paying about
expect to pay 4 to 6% of the sales price, or$300 for a home inspection.180,000300
$8,000 to $12,000 in real estate commission.Tip:179,700Pre-Sale FaceliftAgain, the cost varies
Shop around. Real estate commissions aren'twith the work that's needed to get the house
written in stone. A Realtor may be willing tolooking its best. Conservative estimate: $300 for
accept less of a commission in a slow market, ornew paint, screws and hardware, carpet for living
you may be able to save money by contractingroom floor and landscaping service179,700400
with a Realtor for specific services only rather179,300Moving costsThe cost of moving from
than a contracted listing.250,000one home to another are included in the cost of
-12,000selling a home. It may be as little as $1000 to as
238,000Closing CostsTaxes, both transfer taxesmuch as $12,000 for a cross country move. Let's
and property taxes, and legal fees associatedbe conservative again - $3,000179,3003,000
with the closing and finalizing of your home sale176,300Other relocation costsYou may need to
will be 2% to 4% of your sales price, or $4,000replace appliances, pay off school transfer or gym
to $8,000.Tip: Check the laws in your state. Iffees, or pay storage for your furniture. There are
you've prepaid your property taxes for the year,many unexpected costs of selling a home which
you may get a credit instead of a bill. There maymay amount to nothing, or add up to a good
also be other refunds on prepaid escrow costschunk of change.Even without adding in other
for home insurance and other costs of selling arelocation costs, you can see how the cost of
home.238,000selling a home can reduce your final cash gain. The
- 8,000good news is that most of those costs are
230,000Paying Off Your MortgageWhatever thedeductible on your taxes.Brian Shelton makes it
remaining principal balance is on your currenteasy to sell your house fast.
mortgage will have to be paid off upon the sale