Watch Out for These Added Expenses When Selling Your House

When selling your home, it’s easy to focus on the big payout at the end.  Many people get tunnel vision on that, and completely forget to pay attention to the other bills and expenses stacking up around them.  If you’re selling your home, here are some payments to pay attention to, and avoid if possible.

Utilities and Staging

Staging your house is one of the best ways you can add value to your property without having to make any changes to it.  Unfortunately, unless all of your furniture is high end and brand new, most people have to rent furniture- or services- to stage their houses for sale.  Some services are cheaper, but the average monthly cost of a staged home can be from four hundred to six hundred dollars- and that’s after the one-time payment of five hundred dollars.

Utilities, on top of this cost, add another bill you don’t want to manage.  Most buyers want to see the home with the lights on, will check taps to see how hot or cold it gets, and are interested to see the electrical wiring works.  If you already have a new place, it can be draining to pay electricity on two.

Repair Credits

When moving sometimes, there are repairs you don’t want to have to put in the hours to do.  Regardless if it’s replacing the fence, or repairing the roof, it’s a pain on top of everything else you have to juggle.  A repair credit is something the seller offers buyers so that they can do the work themselves, and not be out any money.

Although it can be handy, if you want to get the most you can for your home- it’s better if you do the repairs yourself.  The cost of selling a house shouldn’t be more than you make it necessary.

Commissions and Taxes

Real estate agents, and realtors, take a pretty big commission off any sales they make.  On average, that’s around 6-8%, which can mean you’re only getting $184,000 for your $200,000 home- which can be a sizable chunk.

Taxes on selling the property depending on the area and what kind of property you’re selling- but you should research these as well.  It’s better to spend five minutes researching and find out you don’t have to pay taxes than to be surprised with a bill.

Moving Costs

This bill shouldn’t surprise you, but a lot of home sellers get so wrapped up in selling that they forget they’re moving as well.  Everything from trucks to services to storage- you need to calculate anything that could be taking money out of your pocket.  If you plan ahead you can look for bargains, but waiting until the last second may leave you dropping more than you’d like to.

If you want to save money here, plan ahead and slowly move your things over to your new home, rather than trying to use a moving truck and getting it all over in one day.

You’re selling a home, that’s grounds for celebration!  Just keep an eye on these money-sucking expenses, and you’ll be able to enjoy the profits you’ve made.

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Tim Spafford

Tim Spafford

Tim is a student who works hard to get a degree in finance and build a successful career in business consulting. Being a student and living in London Tim has a real-life experience in budgeting, saving, money making, traveling and having fun.