When selling your home, it’s easy to focus on the excitement of finding a buyer and closing the deal. But to avoid any surprises along the way, it’s important to be aware of the common costs associated with selling a home. Proper budgeting can help you maximize your profit and reduce any last-minute stress.
Here are the most common expenses home sellers should plan for:
Home Repairs and Renovations
Before you list your home, chances are you’ll need to make some repairs or updates to ensure your property attracts buyers and sells for top dollar. Repair costs can vary widely, depending on your home’s condition and the level of work needed. Minor updates like painting, fixing leaky faucets, or repairing broken fixtures may cost a few hundred dollars, while larger renovations like replacing flooring or updating a kitchen could cost significantly more.
A thorough assessment with your realtor will help you determine which improvements are worth investing in and which ones can be left as-is. Don’t forget that buyers may also request repairs following the home inspection, so it’s wise to have some extra funds set aside just in case.
Staging and Photography
First impressions matter, and professional staging is one of the best ways to ensure your home stands out online and during showings. Staging costs will depend on how much of your own furnishings can be used versus renting new pieces. If your home is vacant or outdated, bringing in new furniture and décor can make a huge difference in the way buyers perceive the space. However, if your home is already well-furnished, your realtor may recommend minor adjustments and enhancements rather than a full redesign.
Additionally, professional photography is a must to make your listing shine. High-quality images will highlight your home’s best features and draw more buyers in. On average, you should budget for a few hundred dollars for professional photography, but this cost can be bundled into a full-service package with some realtors.
Professional Service Fee (Real Estate Commission)
The commission, set during initial discussions with your realtor, can differ based on the range of services provided by the realtor and their level of experience. Your home’s location can also affect this rate. Some agents may offer flexible fee structures or provide additional services, such as staging or marketing, as part of their commission. Understanding the value you’re getting from your realtor’s expertise and network is key to ensuring a successful sale.
Closing Costs
Many sellers overlook closing costs, but they’re an important part of the selling process. These costs typically include title insurance, escrow fees, attorney fees, and other administrative expenses associated with transferring ownership of the property. On average, sellers should expect to pay around 1-3% of the home’s final sale price in closing costs.
Although the buyer usually covers some of these expenses, sellers are often responsible for specific fees like prorated property taxes, HOA dues (if applicable), and possibly repairs agreed upon in the purchase contract. Having a clear understanding of the closing costs ahead of time will help you avoid surprises at the last minute.
Bonus Tip: Get a Head Start with Compass Concierge!
If you're worried about covering upfront costs for home repairs, staging, or even cosmetic updates, consider leveraging Compass Concierge. This innovative program covers the upfront costs for preparing your home to sell and only gets repaid at closing—with no interest and no hidden fees. Whether you need fresh paint, new flooring, or even professional staging, Compass Concierge can help you maximize your home's sale price without the stress of out-of-pocket expenses.
Ready to List? Let’s Chat!
Selling your home is a big step, but with the right strategy, you can minimize costs and maximize your profit. If you’re ready to take the next step and list your home, I’d love to be your go-to resource! Schedule a time to chat, and together we’ll create a custom plan to get your home sold quickly and for the best possible price.
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