When the time comes to put your home on the market thoughts of listing price come to mind. Sellers wonder how much they will be able to get for their home. By working with a good real estate agent you’ll be able to find out how much other homes similar to yours in your area have sold for in recent months. This will give you an idea of what a listing price might be for your home. However, don’t forget about the costs involved in selling your home. Keep these insights from Riverside IL real estate agent Agnes Halmon in mind as you prepare to sell your home.
For most homes, there is much work to be done to get ready for the real estate market. Let’s start with repairs. There are several that you can do to increase the value of your home without extensive cost. Here are a few to keep in mind:
Additional areas that need attention will come out after the inspection. This is another cost to cover as well. If you choose to stage your home (which is recommended) you can expect to pay anywhere from $500 to $700. Keep in mind that this may mean replacing things like worn out furniture. In the case that you move before closing on your home remember to keep the heat going, which means the utility bills will still be due.
This cost is probably the most significant when selling your home – unless you plan on doing a major upgrade like replacing the roof. The real estate agent commission can total around five or six percent of the sale price of the home. This is divided up between the buyer’s agent and the seller’s agent. Some sellers try to do a FSBO to avoid this cost. In this case, you will need to perform all the duties of a Realtor and the potential of losing money increases. A good Realtor can help you get the most for your home and avoid costly mistakes in the selling process.
Mortgage Prepayment Penalty
This is a fee that banks can charge for paying off your mortgage in a short amount of time. The amount of this fee will vary and can be as much as 6 months of interest on your outstanding balance or more. To find out if this fee applies to you contact your lender and review the note. Look for any addendums as well.
For the most part, the buyer covers the closing costs. However, the seller may be asked to cover these in some circumstances. For example, if problems with the home are discovered a buyer might request this during negotiations. The seller may offer to cover closing costs in exchange for a certain deadline to be met. Closing costs can include:
The total can be as much as two to four percent of the sale price of the home. For more assistance in putting your home on the market contact Realtor Agnes Halmon today.