What Are the Costs Associated with Selling My Home?
Understanding the various expenses involved in preparing to sell your home and the fees related to closing the transaction are essential parts of the process.
If you are considering selling your home, this article will help you understand the costs you can expect throughout the process.
Repairs
One of the most significant expenses you might incur could be making necessary repairs before putting your home on the market. Repairs can range from minor cosmetic fixes to major structural improvements. These repairs can be costly but can also help increase the home's value.
Staging
Another potential expense to consider that positively impacts your home's value would be to hire a professional staging company. Staging involves arranging furniture and decor to make the home look more appealing to potential buyers. While it can be an added expense, staging can help sell the home faster and at a higher price.
Pre-Inspection
Some Sellers consider pre-inspecting their home to identify any defects that may impact the sale. While it can be costly, a pre-inspection can help prevent surprises during the negotiation process that often occurs after an inspection is completed. A trusted inspector can help you identify any potential issues with the home and address them before putting the house on the market, potentially saving you money and future aggravation. Consult with your trusted real estate professional to seek guidance on how to best address defects that might be found.
Brokerage Fee
Closing the sale of a home involves various fees and expenses, such as the brokerage fee paid to the Real Estate Company that you hire for services on your behalf. The brokerage fee, often referred to as the commission, is typically an agreed upon percentage of the sale price and may vary from agency to agency as there is no standard fee.
Legal fees
The Seller is responsible for having the deed and the transfer tax declaration prepared for the Buyer at closing. Additionally, taxes may be owed to the town where the home is located. The Buyer and Seller are responsible for paying a Transfer Tax to the State of Maine, which is $2.20 per thousand. Some closing attorneys will also charge a small fee for facilitating the signing of the legal documents.
Moving expenses
Whether moving from across the country or just relocating across town, you must plan for moving expenses. This could include hiring a moving company or renting a truck to deliver your personal belongings to your new home.
Sale-Dependent Fees
Some fees are highly individualized depending on the Seller’s location and particular circumstances. For example; if the home has a public water and sewer system, the Seller likely will have a final bill to pay to each utility at closing. If the Seller is not a Maine resident, there may be a withholding tax of 2.5% of the purchase price at closing, unless the Seller applies for and is granted a waiver. If the property is not the Seller's primary residence, capital gains tax may be owed. In some situations, Buyers may ask Sellers to assist them in paying their closing costs to help them obtain a mortgage. And finally, if the Seller owes a mortgage, has a home equity line of credit, or if there are any liens against the property, all would need to be paid at closing.
The good news is that by understanding these costs, Sellers can make informed decisions, better prepare themselves for the process, and get the most value out of their home.
