5 hidden costs of selling a home

If you want to put your home on the market, it’s important to note that you won’t pocket every dollar from the sale. Here are some of the costs associated with selling a home.

1. Realtor and legal fees
As the seller, you’ll need to pay the commission due to both the buyer’s agent and your own. Plus, you’ll need to hire a real estate attorney to oversee the transaction and handle the paperwork.

2. Repairs and upgrades
Do you need to replace a leaky roof following an inspection? Or maybe you want to boost your home’s appearance with fresh paint and landscaping? These projects can cost anywhere from a few hundred to several thousand dollars.

3. Home staging
A home will often sell faster and at a higher price if it’s been staged. You should also consider having your home professionally cleaned before an open house.

4. Loan payoff costs
If you have a mortgage on your current home, you’ll likely be charged a prepayment penalty for paying it off before the end of your term. You’ll also have to repay your home equity line of credit when you sell your property.

5. Taxes
Unless you’ve prepaid your property tax for the year, you’ll be responsible for the portion that applies prior to the closing date. If the property isn’t your primary residence, you’ll also have to pay a capital gains tax on any profit from the sale.

Keep in mind that while the cost of working with realtors, stagers, and other professionals can quickly add up, their expertise will ensure the process goes smoothly and that you get top dollar for your home.