Real estate agent commissions:Typically, the seller pays the real estate agent commissions, ranging from 5% to 6% of the sale price. For example, if a home sells for $300,000, the commission could be between $15,000 and $18,000.
Closing costs: Closing costs can vary, but they usually include title service and closing fees, owner’s title insurance, documentary stamp tax, recording fees, and property taxes. The total cost can range from 1% to 3% of the sale price. For a home that sells for $300,000, the closing costs could be between $3,000 and $9,000.
Capital gains tax: You may be subject to capital gains tax if you sell your house for more than you paid for it. To avoid paying taxes when you sell property, you can consider a 1031 exchange, which allows you to defer paying taxes by reinvesting the profits into another property.
Home repairs and renovations: It’s common for sellers to make some repairs or improvements to their home before putting it on the market. The cost of these repairs can vary depending on the extent of the work needed. For example, a home needing a new roof could cost between $5,000 and $15,000.
Staging and photography: Some sellers choose to hire a professional stager and photographer to help make their home more appealing to potential buyers. These costs can vary depending on the level of service needed. For example, staging and photography could cost between $1,500 and $3,000.
Homeowner association fees and transfer fees: If the home is located in a community with a homeowners association (HOA), there may be fees associated with transferring ownership of the property. These fees can range from a few hundred dollars to a few thousand dollars.
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