Successful property transactions are underpinned by a budget that accounts for all the expenses.
Property owners often become so focused on finding the funds for their next purchase that they forget to properly assess the financial impost of selling their current property.
Here’s a breakdown of the costs associated with the sale of a home.
- Real estate agent commission: This can vary but there is a commission to be paid for your selling-agent and your buying-agent. Budget for about 6% of your selling price with 3% going to each.
- Going out in style: You may decide after a consultation that presenting your home in the best possible light will maximize your price and provide a worthy return on investment. Styling alone will start at around $1,500. This can become a sizable chunk of cash, but you may miss out on a strong financial gain without making a few strategic improvements.
- Repairs and presentation improvements: Whether it is getting a repairman in to fix a broken door, paint a wall, or hiring a dumpster to get rid of a pile of clutter, make sure you have the funds available.
- Bank fees: You may need to discharge a mortgage when you sell and there can be a cost to this depending on the agreement and size of the loan. Contact your lender to make sure you’re not blind-sided.
- Fine print: Legal advice and paperwork is always required when selling and will need a budget allocation. There are likely to be fees for submitting forms and paperwork too to various authorities.
- On the move: Removal fees and associated insurance will add to your costs.The amount will vary depending on the amount of personal items to be moved, the distance to be taken and whether you require temporary storage.