Selling a house is typically associated with financial gains, and the expenses are often overlooked. Many people are surprised when they learn the cost of selling a house.
The costs will determine the profit you’ll make and the money you will have available for reinvesting. To get money from the sale, be ready to put in some money.
Let not the expenses of selling a house catch you off-guard. To budget effectively, consider these potential expenses. Taking these into consideration will help you avoid unpleasant surprises and financial burdens during the home-selling process.
Home Repairs and Staging Costs
If your home is in dire need of repairs, you might have to fix it up before placing it on the market. Doing so will make it more appealing to the buyers. If you do not ‘invest’ in home repairs, your asking price might have to take a knock. To enhance the appeal of your house, you might have to apply a fresh paint coat to the walls, freshen up your flooring, and fix up anything leaking, cracked, and defective. Although these repair costs will add up, they will also have a positive impact on your selling price. The same applies to lease extensions. Although it will cost you money to extend a lease, it might help you get a better price for your home. Before you can sell your house, you might also have to pay to procure energy performance certificates.
Presentation matters when it comes to making a sale, and this is applicable even in the case of houses. Home staging professionals know exactly how to make a home appealing to a prospective buyer. However, to avail of professional staging services you will have to bear the additional cost. It will most likely prove worthwhile in the long run, but you will incur this cost for making to enhance the property’s presentation for sale.
Capital Gains Tax
Your home sale could be subject to capital gains tax. However, this depends on several factors. And here is the good news: you can avoid a tax bite on the house sale or at least minimise it. Consult a tax professional who can help you understand and plan for potential tax implications. Check if you qualify for a capital gain tax exclusion or private residence relief.
Closing Costs
It’s in the name. These are the costs associated with the close of the home sale. You will pay these when you meet the buyer along with the other crucial parties to sign the documents and hand over the keys to your house. You have to be prepared in advance with your cheques or money orders. Take these along with you to the closing to be handed over on the spot.
Storage and Accommodation Costs
Some situations necessitate that the seller move out before the sale is complete. If you find yourself facing such a situation, you may need to get additional storage for furniture and belongings. Such storage options are convenient, but they do cost money. Additionally, you may require temporary accommodation too, if the place you were supposed to move into is not ready.
Wrapping Up
Apart from these costs, you will also have to bear the cost of removal of possessions from the property. All these costs will affect your bottom line overall. Knowledge and understanding of these costs can help you negotiate to reduce or avoid some of these costs completely. If you navigate the selling process well, you will be able to cover all the associated costs and enjoy higher net proceeds from the sale.
If you would like a discreet conversation about the buying and selling process please do contact Marc Cox on 07966 143 255 via SMS, WhatsApp or just give him a call. Or you can drop him an email at mcox@coxandcohomes.co.uk
