A Budgeter’s Guide to Selling Your Home

Most home sellers expect to invest something into marketing their home and getting it ready to be sold for its highest value.  However, many sellers find that there are significantly more costs than they initially expected.  Fidelity National Title Agency would like to walk you through some of the common costs so you can budget appropriately and aren’t blindsided by unforeseen financial problems.

Home Inspection

Detecting problems before you even list your home can put you at a significant advantage.  If the home inspection says everything is running perfectly, you can include the report in your sales pitch.  More likely, the inspection will turn up a few problems, and knowing of those ahead of time will give you the power to decide what needs to be repaired and what can stay as it is. 

Repairs

If the home inspection turns up things you decide to repair, you will have to pay all these costs out-of-pocket.  Fixing things ahead of time can be beneficial because you can advertise brand new appliances, newly remodeled floors, and energy efficient areas, depending on what you fix.  The costs here vary wildly depending on the upkeep of the home, but consider how much you’ve already invested in keeping your home running well.  If you perform regular maintenance and upgrades, the cost will be much lower than if you haven’t done much work on the home in the last few years.

Facelift

Most homeowners can generate larger offers by doing simple upgrades and maintenance around the house.  Some rooms, especially if there are several nail and tack holes, would look fantastic with a new coat of paint.  Any hinges that are squeaky or missing screws should be repaired, and all lights should shine brightly.  These minor changes can have a big impact.  Expect to pay at least $300 for the supplies needed.

Moving/Storage Costs

Depending on how far you are moving, you can expect to pay anywhere from $1,000 to $12,000.  If you’re moving within the neighborhood, the cost will likely be closer to $1000, whereas cross country moves will be far more expensive.  While staging your home, it’s generally a good idea to store excess furniture.  A storage unit will generally cost between $75 and $100 a month, so if your home is on the market for a long time, that cost can quickly add up.

Relocation Costs

You likely are involved in many community organizations such as schools, gyms, and transportation systems.  When moving, you will likely have to cancel those connections and start new ones in your new location.  There are often fees associated with canceling these memberships, transferring information between schools, and starting new memberships elsewhere.  The cost varies, but be sure to inquire about any of these fees at your participating organizations.

Paying Off Your Mortgage

Anything you still owe on the home will have to be repaid, and many mortgages have a prepayment penalty, which will have to be paid on top of what is owed.  This payment can often be delayed until after closing, but expect it to taken out of the profit from the sale.