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Moving home can be one of the more stressful things that you do. If you own the house you’re currently living in, then that adds an extra complication; selling your current home and buying the future one.
That alone would be enough to make people overlook some things. If you’re trying to sell your house fast, that’s especially true. One of the larger aspects of this is the costs associated with doing so.
Most people would know about commissions and other expenses. There are several others that you’ll need to have covered, however. Working them into the asking price for the property can be more than recommended.
Hidden Costs Of Selling A House
Capital Gains Tax
If you’ve made a profit on selling your home – if you sold it for more than you paid for it – then you’ve made a capital gain. You’ll have to pay a tax on that. There is some good news, however.
Depending on where your house is, you could be eligible for an exemption for this tax. While this can vary, it could be up to $250,000. That increases to $500,000 if you file taxes as a married couple.
There is one caveat to this, however; the house you sell will have to have been your main home.
Closing Costs & Additional Fees
In every real estate transaction, there can be multiple closing costs. While most of of these are paid for by the buyer, the seller also has to pay some. There can be quite a few of these. Some of the more notable are:
- Homeowners association fees;
- Attorneys fees;
- Transfer fees, and;
- Property fees.
If you’re selling in a buyer’s market, then you should expect to pay a large chunk of these. The exact cost of these, however, will vary from state to state. You’ll need to research the local area to get rough figures for them.
Utilities
If you’re going to move out before your house is sold, then you mightn’t think about utilities. Nobody will be living there, so nothing will be used, right? That’s not true, as houses that aren’t warm and well-lit can be more difficult to sell.
There could be several other appliances, such as an air conditioning unit, that might also need to be used. That will require electricity. You should expect to pay utility bills every month until your house is sold.
While these shouldn’t be too high, they can add up if it takes a while to sell your home.
Wrapping Up
The costs of selling your house can end up being much higher than you thought. Getting out your calculator could make you feel as though you wouldn’t make a profit on the sale. Being smart about your approach and being budget-minded, however, should make sure that you make some money on it.It’s also worth noting that most real estate agents work on a commission-only basis. That encourages them to get as high a sale price as possible. As a result, you should make more than enough to cover the costs of selling a house, plus giving you a tidy profit.
