The True Costs of Selling Your Home the Conventional Way
Are you ready to list your Virginia Beach, Norfolk of Chesapeake house? If so, then you should make yourself aware of the true costs of selling your home the conventional way; you might just be surprised at the expenses related to this method. By being aware of the costs to expect, you can ultimately make the right decision when it comes to your preferred method of selling your home.
Closing Costs and Recording Fees
These days, sellers are often asked to cover closing costs; this includes both the seller’s portion and the buyer’s portion, which can add up quickly. This is especially common among first-time buyers, who might not necessarily have the money saved up to place a down payment and pay their closing costs. Of course, you’re not under obligation to pay these costs, but offering closing cost assistance will greatly improve your chances of an offer.
Even if you don’t pay both sides of the closing costs, you’ll still have your own to worry about. You should generally expect to pay about 2-3% of the total sale price of your home for closing costs alone, so this can easily total thousands of dollars. On top of this, you may also be responsible for recording fees related to closing on your home and transferring the title, which can tack on another few hundred dollars. Check out this list of the typical Virginia closing costs.
Title Insurance Costs
When you sell your home, you’ll also likely be required to have title insurance. The purpose of title insurance is to guarantee to the buyers that your home has a clean title, it’s in your name, and it doesn’t have any lien holders on it. Even if your state doesn’t require you to show proof of title insurance as part of your sale, it’s a good idea to have it. Costs for title insurance can vary based on your location and home value, but you should expect to spend a couple hundred dollars on it. Want an estimate of what you may have to pay, check out this title insurance calculator.
Real Estate Agent Commission
Perhaps one of the biggest costs associated with selling a home the traditional way is that of paying your real estate agent a commission. In most cases, a real estate will collect around 6% of the total sale price of your home. This means that if you sell your home for $200,000, you’re going to be shelling over $12,000 directly to the agent that helped you make the sale. That’s a pretty hefty sum of money, so you’ll definitely want to factor this in when you plan on listing your home and hiring a real estate agent to assist you through the process.
HOA Transfer Fees
If you currently live in a neighborhood where you’re part of a homeowners association (HOA), you may also be responsible for paying transfer fees to the new owners, which can range from as little as 20 bucks to $400 or more. If you owe any dues, those will also need to be paid before you sell your home.
Maintenance and Upgrades
And of course, if you want to get top dollar for your home and ensure the best return on investment, you’ll also need to put some maintenance and updates into the house itself. This can cost you anywhere from a few hundred dollars to several thousand dollars, depending on the scope of the upgrades that you’re looking to have done. A little while back, I wrote a series of blog posts about DYI home improvements. The series begins with DIY Projects to Sell Your Home – Declutter.
There’s no denying that true costs of selling your home the conventional way can add up quickly. When all is said and done, you could end up shelling out tens of thousands of dollars just to sell your home. If you’re looking for an easier and less expensive alternative, contact us today. We buy houses for cash in Virginia Beach, Chesapeake and Norfolk, no matter the condition and we’ll cover all the closing costs!