Last updated on April 1st, 2019
When selling a home it’s easy to forget that there are costs and fees involved in the process. When these things are overlooked it’s very easy to end up losing money on a home. Below we’ll cover some important cost reminders you can use before you list with an agent.
If it’s time to sell your home in Riverside county, it’s important to consider the costs involved with doing so. It’s easy to forget the up-front and back-end costs involved with selling real estate. This absolutely needs to be factored into your numbers when determining who to work with and how much you’ll ask.
According to Freddiemac, sellers are spending on average $15,000 to sell their home. That is a TON of money!
And if you’re in Riverside?
An average of $21,223
From this number alone you can see why it’s so important to factor in the costs and fees involved with selling your home. $21,000 can easily take a huge chunk out of any profits you thought you had.
What are the costs involved with selling?
When listing your home, the costs involved with the transaction are staggering. Home owners can really get reamed when it comes to selling real estate unfortunately, so doing your due diligence on these costs will help you when pricing.
1. Agent Commissions
Your realtors fees are going to run you on average about 6%. This is a well known number and pretty well expected in any California transaction. This amount will be deducted from the total amount you walk away with.
2. Agent Fees
All agencies work differently. And depending on who you choose, additional fees may be added to the bill. This is where you must compare and contrast the differences between agencies you’re looking at. Don’t always go for the lowest number however. An agency may look affordable but be inexperienced so it’s important to do your research to find the realtor that’s right for you.
3. Closing Costs
These costs will be deducted at the closing table. They’ll typically include transfer fees, title insurance, title search fees, recording fees, appraisal costs, discount points, transfer taxes, credit report fees and anything else that was done. The total amount of these fees together typically amounts to about 2% of the final sale price.
Should your home take months to sell, you will still be responsible for the property taxes. For this reason the exact percentage is variable. If the home sits for months you could be liable for thousands in taxes. Bottom line, the quicker your home sells the better. For this reason it’s really important you do all you can for your listing and making any necessary upgrades/repairs buyers may want to get your home to sell as fast as possible. Also learning more about how taxes work in california can really help you as well.
5. Home Preparations
This is the part that can really take a toll on a home owner. If your home requires time, money and energy just to get it market ready, your stress levels are sure to shoot through the roof. Not only that, but you may need to hire a professional photographer and staging company to help give your home the most appealing visual appearance when listed. If your home also needs yard work this is a lot of time and energy that can take it’s toll on you.
6. Home Inspections
Home inspections can be a sellers worst nightmare. There is always the possibility of something being found and more and more money being required of you. While inspections are stressful they give buyers another sense of security in their purchase so more and more homeowners are doing it. You can expect to tack on an additional $200 and up for these inspections services.
7. Storage & Moving Costs
The expense of moving in itself can be a large one depending on the move. Moving can include hiring movers, storage fees, truck costs and other small miscellaneous things that may come up. Getting a storage unit is typically a good idea for homeowners as it allows them to pack away any items your realtor recommends be removed for walkthroughs.
At the end of the day, you’re looking at about a $20,000 dollar selling expense from your total sales price of your home. While this is a hefty fee, the quicker you can get your home to sell the smaller this number will be in the end. Unfortunately this cost is inevitable and will have to be paid regardless when selling on the market.
The good news is that companies are now developing technologies that allow home owners to completely bypass the need for a broker. This works to the advantage for many sellers as it allows them to sell their home in a more stress free fashion.