First published: 7 September 2022 @ 6:00 pm
Even if you’re not a real estate agent, you know how difficult it is to sell a house. It is not a simple task, especially if you’re not familiar with the real estate market.
There are many hidden costs you should know about when selling your house.
You should know these hidden costs and also know how to avoid them if you want to sell your house quickly and easily.
1. Attorney Fees
You should know the fact that attorney fees are one of the most expensive cost associated with selling a house.
Prospective buyers often use their own real estate agents and a solicitor to get this work done, so you can be sure that they are already expecting to pay for their own lawyer’s fees.
In addition, if you decide to use a real estate agent, it is highly likely that the agent will charge you a fee for his or her services.
The same applies if you use a solicitor. You should know that there are many ways of getting your house sold and buying another house without having to pay attorney fees.
2. Survey
When selling a house, survey the property thoroughly. A good survey will help you know what is available and what needs to be fixed.
It will also help you understand the property’s condition and will guide you through the purchase process.
The survey cost doesn’t determine the ultimate purchase price, but it will determine the down payment.
The surveyor should provide you with a list of any items that need to be fixed and their estimated cost.
3. Valuation
Selling a house is an important decision. If you want to sell your house quickly, the best thing to do is hire a professional real estate agent.
A good real estate agent will not only help you find the right house but also give you expert advice on how to maximize the sale of your house.
Sales price is the best tool to determine how much you can sell your house for.
If you have a mortgage on your house, the appraised value of your house is used to determine the sale price.
The appraised value of your house is also used to determine the amount of money that you can borrow from a bank or lender.
Appraised value is a method used by real estate agents and lenders to estimate the market value of a property.
The estimated market value of your house will depend on the neighborhood, size, location and condition of your house.
4. Closing Costs
If you want to sell a house, you’ll need to pay closing costs.
Closing costs include the amount of money you’ll need to pay for all the last steps of the process, such as giving a mortgage company a check for your new mortgage and signing your deed.
We typically split closing costs between buyer and seller in a split-price deal. Typically, the seller pays one half of the closing costs and the buyer pays the other half.
Leasehold properties and properties purchased by non-residents may have different closing costs.
If you don’t know the closing costs associated with your property, you can get estimates from the title company that is preparing your deed.
5. House Warranty
House warranty is another cost that you need to know about before selling your house.
The agent will help you calculate the house warranty cost and the final amount that you need to pay for it.
Whether or not you already have a potential buyer, it is always better to make sure that your house is well-protected.
For this reason, it is essential to know the house warranty cost and how you can reduce it.
The first thing that you need to do is to check whether a homeowner’s insurance policy covers your home.
This insurance policy will cover any damages or accidents that may occur while you own the house.
It does not matter if you sell your house or not, because the coverage will continue for as long as you are still living in it.
6. Lien
Before selling your house, the seller should have a lien on the property. The seller can hold this lien until the buyer pays the last penny of the sale price.
In some states, a few days after closing, the seller can remove the lien.
In states where it is illegal for the seller to remove the lien before closing, we must record a deed at least one week before closing.
If we do not record a deed within that time frame, you may need to pay taxes on your home until you have proof that you own it.
During the sales process, they may give you the option to sign a “holding agreement” that waives your right to a lien.
You may keep the lien on your home if you have received money for your house, or if you are in a financial hardship.
However, it is usually better to waive the lien than not to have one at all.
7. Mortgage Payoff
You can’t sell a house until you’ve paid off the mortgage. If you have equity in your home, you can take a tax deduction for the mortgage debt at the time of sale.
But if you owe more than the house is worth, don’t sell it until you’ve paid off all of your debt.
The additional cost of selling a house in this condition can range from 2 to 4 percent of the sale price.
If you have a hefty mortgage, consider renting out your home and moving into a cheaper one.
8. Repairs
One of the biggest costs in selling a house is the cost of repairs. For example, if your home needs new windows, you’ll have to pay for that.
It’s a good idea to get estimates on all the major items in your home before you put it on the market.
This will help you know what you can expect to pay out-of-pocket and also give you an idea of how much time and money will be required to get everything done.
Other unexpected costs that may come up include painting and landscaping.
9. Vacant House Fees
Legal fees when selling a vacant house can be expensive.
Hire an attorney to handle the title search, notarize the deed, and pay the filing fees and court costs associated with selling a vacant house.
You may also need to purchase a prepaid or other kind of insurance for the property, especially if you plan to sell it quickly.
Be Mindful of Other Potential Costs
In conclusion, if you want to sell your house quickly and easily, it is important for you to be aware of these hidden costs.
Our blog, HandyWork, also has more tips and tricks that you can use to sell your house quickly and easily. Check out our blog and other articles that we have written now!