Deciding to sell your home is an exciting moment in your life. It means you are preparing to leave your memories behind and make new ones in another home. Before you begin the selling process and welcome potential buyers into your home, you need to prepare first. This means you will become aware of costs you didn’t know existed. Continue reading below to reveal the hidden costs you can expect before selling your home.
• Renovation Fees – Any real estate agent will tell you that renovations are most likely your top priority before you sell your house. The cost depends on a number of renovations your home requires. You should also add in the fees for areas around the home that need to be fixed such as the electric and plumbing.
• Landscaping Fees – Since curb appeal is the first impression potential buyers have when looking at your house, you will spend money on landscaping. You can choose to hire a professional landscaping service or choose to do the work yourself. Either way, you are going to have fees.
• Real Estate Agent Fees – Ask your real estate agent up front about the fees. Understanding the price range for the fees will help you budget easier.
• Legal Fees – As a homeowner, you already know that an attorney needs to be involved in the matter of selling your home. Unfortunately, they don’t offer this service for free. So, you should be prepared to pay legal fees for the closing of your home. Asking for upfront fee prices or price ranges will allow you to fit the cost into your budget.
• Real Property Gains Tax – RPGT or Real Property Gains Tax is a cost that is imposed by the government if you sell your property within 5 years from the date you purchased it. However, if you have owned your home for 6 years or more, the tax is not applicable.
Now that you know the hidden costs you will have when selling the house you can adjust your budget. Some homeowners that are not aware of the hidden costs are often surprised at the end of the sale and begin their new journey with debt. It is essential to prevent this from happening to you. Preparing ahead of time and establishing a realistic budget will help you throughout the selling process. Start implementing these hidden fees into your budget today!