Are you going to sell your house? If so, you must b worried. For a person who is doing this for the first time, this can be quit worrying because you do not know how to go about the situation, and you have no idea what you should do, and what you shouldn’t. Confusion can mean that you incur more costs then you have to, and you also bear the risk of messing things up and if you are able to sell a house at all, you may end up realizing that you did a bad job if it. However this does not necessarily have to be the case. There are things that you can do to ensure the sale process goes smoothly, and the most important thing you will need to do in order to be successful in your aim is know about the costs that are involved in the house sale. When you know about all these costs, you can do a much better job of selling your house, and that too doing it in a cost effective manner.
This is the first step that you need to take because this will help you gauge a price for your house. Visit the local neighborhood, and see the houses that are being sold. This will tell you what costs other houses are putting up, and where does your house. Once you know this you will be able to estimate the costs much better.
Find out the market price
Find the market price of your house, as this will also play a role in determining the costs that will be incurred in the sale of your house.
These are the major costs that you will incur. When you are going to sell a house, you are going to have to restore it to its best condition so that the buyer won’t have any problem buying the house. Until you actually get to the task, you think that it’s not going to cost much because you have maintained your house well, and put your bet efforts on it. But it’s only when you begin clearing the house, preparing it for sale, that you realize that there are going to be definite costs due to the repair. After that, one by one the costs begin to pop up: the walls have to be painted, the taps have to be repaired, a pipe suddenly begins to leak that has to be corrected and just like that the costs begin to grow and suddenly, before you know it, all your money is being spent like water in the restoration of the house. What you need to do is make a repair budget, sit down and make a list of every single thing that will be a part of the repair, and then try to squeeze in the costs.
Another major cost that you are going to incur is going to be of the realtor that you hire. The real estate agent is going to be necessary to ensure that the process of sale is accelerated. The realtors will be taking a profit of almost 6% to 7% of the sale. This again brings us back to the first point: the cost of the house is going to matter a lot. For example if you are going to be selling a house for $300, 000, and you hire a realtor you are going to have to pay a cost of around $18,000. Now that is quite a lot, and when you add to that the repair costs and other costs, this is going to cost quite a lot, unless of course you are able to sell the house privately.
These are also going to be incurred. There are many states in the US which do not charge any transferring tax, and then there are others like the state of Colorado which charge only 1% of the cost of the house which is significantly low.
All these costs are going to be the main costs incurred when you are selling a house, and this is going to cost you something in the range $20,000 to $40,000.