Although there is no down payment to make, selling a home can also come with its own list of added expenses. Whether your intentions are to relocate, downsize or upgrade to a larger home, selling a home can be stressful and costly. You may already be aware of the five to six percent commission a real estate agent will charge based on what the home ultimately sells for, but there are other costs that you may not be aware of.
In a perfect world, owning a home would come with no strings attached when it comes to selling, but if you do decide to sell then your county, state or municipality may be receiving some money through an imposed real estate transfer tax. The amount of this tax will depend on current rates and where you live. On the plus side, this cost could be negotiated with a buyer and split.
Should you sell your home for a substantial profit, you may have to pay a capital gain tax, though it is relatively rare as you can exclude up to $250,000 in gains if you’re filing as a single person or up to $500,000 in gains if you’re married and plan on filing jointly.
Home staging is an optional expense, but if it’s done effectively it can significantly boost the odds of finding a buyer in less time. However, staging costs can quickly become expensive and though you may be able to recoup these funds with a higher asking price, you also need to be ready to accept them up front.
This real estate and financial update is brought to you by FreeValues.com, the number one provider of free home values on the web. We provide free house values as well as useful information for sellers.