The Costs of a Traditional Home Sale
When you decide to sell your home, the costs associated can come as both an unexpected surprise and a major financial burden. From commissions to closing costs to repair work, it’s important to understand the full scope of what it means to list and sell your home traditionally. Here’s what you need to know about the financial considerations involved in a traditional home sale.
Commissions
When selling your home traditionally, the biggest cost associated with the process is typically commissions. Typically ranging from 5-7% of the sale price of the house, this commission is generally split between two parties: the buyer’s agent and the seller’s agent. This means that, for every $200,000 sale price on a house, between $10,000-$14,000 would go towards commissions alone.
Closing Costs
Closing costs are another area where expenses can quickly add up during a traditional home sale. These costs cover things such as title insurance fees (usually 1% of the purchase price) and administrative fees (typically $500-$2000). It should be noted that closing costs are usually higher for buyers than they are for sellers; however, in some cases, sellers may have to pay their closing costs as well which can include things like attorney fees or escrow fees.
Repair Work
On top of commissions and closing costs, sellers will also need to consider any repairs or upgrades that need to be done before listing their house on the market. Whether it’s something small like fixing a leaky faucet or something major like replacing outdated appliances or renovating an outdated kitchen/bathroom; repair work is necessary in order to make sure your house looks its best before it hits the market. Keep in mind that even seemingly minor repairs can end up costing quite a bit depending on what kind of work needs to be done so make sure you budget appropriately!
Selling a home traditionally involves more than just listing it on the market – there are several financial considerations one must take into account when listing their house for sale. From paying commission fees and closing costs to making sure all necessary repairs have been taken care of; these are all important factors that will affect how much money you end up walking away from your traditional home sale within your pocket. With this information in mind, make sure you do plenty of research beforehand and budget accordingly so you don’t find yourself caught off guard by any hidden expenses down the line!
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