Understanding the costs of putting your home on the market

June 14, 2022 - By marketing@allentate.com

What do the costs of selling a home have in common with Hollywood? There are “A list” costs that everyone knows about and expects to pay, like agent commissions, but there are also “B list” (and C and D list) costs that may fly under the radar. 

Aside from the commission fees, we’ve put together a list of all the costs you may be responsible for as a home seller—including some things you may have never considered. Knowing what to expect can help you feel more prepared and put you in a more confident place as you embark on this big move. 

Cleaning 

Do your carpets look like a scrapbook documenting your kids’ art projects over the years? Do you have vaulted ceilings that collect cobwebs you can’t reach on your own? Do you have a pet? There are lots of situations that call for professional help, so factor this cost in when you’re preparing to sell your home.

Home staging

The National Association of REALTORS reports that 83% of buyers’ agents say staging a home makes it easier for buyers to visualize the property as their future home. If the house is vacant, home staging is a must. If you are living in the home, get advice from your real estate agent on how much staging is needed and which rooms will benefit most. According to Homeadvisor, the average seller pays $1,500 in staging costs. 

Repairs

The key to being smart about repairs is to figure out which fixes or improvements must get done before you list the house, and which repairs can be addressed through concessions to the buyers during contract negotiations. Your real estate agent is in your corner to help you prioritize properly. No matter what your list ends up looking like, it’s important to know that repairs will most likely be part of the cost of selling your home.

For homeowners with enough equity to cover the project costs, our partner, Curbio defers 100 percent of the home repair costs until closing, with no fees, interest, credit checks or other restrictions. Curbio offers a full range of services, including painting, flooring, kitchen and bath remodel, landscaping and roof replacement. Repair now so you can list for more when you use Curbio! If this is something you’re interested in, ask your Allen Tate Realtor.

Photography

According to the National Association of Realtors, 97% of home buyers search for homes online, and 85% of buyers say photos are the most important factor in deciding which homes to view.

Given the importance of making the best digital first impression possible, it pays to hire a photographer to capture images of the house for your online listing. This costs on average $500-$1,000 depending on where you live and the size of the house. 

Landscaping

Your yard will either help or hurt a buyer’s first impression, so plan to spend some money on landscaping (or allot some sweat equity if you want to do it yourself). If you plan to pay someone, the average cost is around $3,200, depending on the scope of the work.

Storage

You want your home to show off all its storage space, so it can be well worth the cost of a storage unit to empty out your closets and garage, at least halfway, while your home is on the market. If you will need to rent a vehicle to transport your belongings, include this cost in your budget as well. 

Home Warranty

In some market climates, it helps to offer buyers a home warranty. These typically last one year and range from $300 to $800 depending on the coverage and the size of the house. Your real estate agent can help you decide if this is the best way to go, and many agents are well versed in the best home warranties to purchase.

Utilities

Some people are lucky, some people have the best timing on the planet, and the rest of us should plan to continue paying utilities while the house is on the market, even if it’s vacant, and even if you’ve already moved into your new house. This is definitely a temporary situation, but it helps to be prepared by knowing the approximate cost of your monthly bills.  

Concessions

The concessions you make to the buyers can vary greatly depending on the real estate market in your area. They can include a portion of the closing costs, leaving certain appliances in the home, or including large items like a piano or pool table with the sale of the home. 

Closing costs

Expect to pay 2% to 4% of the selling price on closing costs which can include a transfer tax, mortgage processing fees, escrow, and notary fees. You may also have to pay outstanding property taxes, prorated water and sewer bills, and attorney fees, if you have hired a real estate attorney. 

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Category  Real Estate