Preparing Your House For Sale
When trying to figure out the total cost to sell your house you should start by taking into account what you need to spend to prepare your house for sale. Most buyers want homes that are move-in ready.
Home Inspection Costs
Normally when you sell your house the buyers will have a home inspection performed. The Buyer usually asks sellers to make repairs or replace anything that is found defective or found to be a safety hazard in the home.
Seller’s Title Fees
A title is a legal document about a home that specifies who owns it and whether or not there are any liens on the property. The buyers want to make sure that no one else has any financial interest or otherwise in the home.
For example, they want to make sure that you don’t owe any contractors money for any work done on the home or owe the government any back taxes.
When you sell your home a title search must be performed to make sure your property shows what’s called “free and clear title.” This ensures that you are selling your home to the buyer without any encumbrances that could affect them financially or non-financially in the future.
Sellers must pay for title insurance to cover and protect the buyers and their lender from an encumbrance, or a “cloud,” on the title. Every title company has a chart which states the seller’s cost for the title insurance, depending on the sales price of the house.
For example, title insurance fees for a $200,000 home is somewhere in the $1,300 price range, and for a $500,000 home it is somewhere in the $2,900 price range.
A real estate transfer tax is a fee imposed by some states, counties and municipalities for transferring real property. Many states, counties and cities charge transfer taxes to sellers or buyers when a property is sold and purchased.
Homeowners Association Closing Fees
If your home is a part of a homeowners association and you pay monthly or annual dues, you may incur a fee from them when you close on your home. The fee is for a letter that states that your dues are currently up to date and paid in full. It’s also for the paperwork involved in gathering the new homeowner’s information and releasing you from your obligations.
Plat of Survey
When selling a house a plat of survey must be ordered. A survey is an official, legal drawing to scale that outlines a home’s property lines, or boundaries, and includes an outline of the house, deck, patio, fence, shed or any other permanent fixture on the property.
Commission is what is paid to a real estate brokerage firm for the services involved in selling your home. Sellers usually pays the real estate listing commission. It is split between their brokerage firm and the brokerage firm that brings the buyers to the transaction.
It is up to you whether or not you decide to use an attorney to represent you in the sale of your home. Real estate agents and brokers cannot perform legal work. An attorney will negotiate all of the contract terms on your behalf and give you legal advice throughout the transaction.
Sometimes sellers will offer a home warranty as a marketing tool to help sell their home. Some buyers will ask for a home warranty to be included in the sale of the home to give them protection after the closing.
The cost of a home warranty, depending on the level of coverage, is anywhere between $400- $600 for a year’s worth of coverage.
FHA/VA Loan Costs
If your buyers have a Federal Housing Administration Loan (FHA) or Veteran’s Affairs (VA) Loan insured by the federal government, there may be fees allocated to you as the sellers.
For example, if the buyers are obtaining a VA Loan, the sellers must pay for a pest inspection. On average this will cost approximately $100.
Radon is a colorless, odorless gas that can cause cancer. It is found in the rocks and soil underground. It lingers under some houses and not under others. If buyers have a radon test performed and a radon level of over 4.0 pCi/L is found, they will most likely ask the sellers to have the radon mitigated in the home and have a retest performed showing acceptable levels.
Well and Septic Costs
If a house has well and septic, the buyers will usually want the system inspected. The inspection is typically the buyer’s cost. If something is found wrong with the system, the buyers will most likely ask the sellers to repair it or fix the issue.
Closing Cost Credit to Buyers
Sometimes buyers negotiate closing cost credit from the sellers. As a seller you should take this into account when figuring your net proceeds. Some sellers will accept a higher sales price in exchange for paying some of the buyer’s closing costs.
It’s also important to take into consideration the cost of physically moving all of your belongings. There are many scenarios for moving and a wide range of costs involved.
Some sellers pack up and move everything in the house themselves except for their large furniture. In this case you can expect to pay around $1,000 for your move.
Some sellers hire a full-service moving company to do everything: pack everything in the home, put it all on a large moving truck, drive it all to their new home and unpack everything in their new home. This may cost somewhere between $2,000-$4,000.
Sell Your House to an Investor
If you’re wondering, how much does it cost to sell a house, be sure to take into consideration every cost possible. If you want an easier solution you might consider selling your house to an investor, which will unable you to bypass many of these costs.
We buy houses in any condition in Texas so if you are interested in getting an offer today, fill out our quick form or call us at 214-272-2177 and we will be happy to answer any questions you have may have.