The costs associated with selling a home can add up quickly. Before you sell, do the
math: Add your projected selling expenses to your moving costs. Then compare the
total to the expected sale price of your home.
Use this table to anticipate the costs of selling:
Item
Estimated Cost
Tips
Sales commission (if you list with an agent)
5 to 8 percent of your sales price
Since many Realtors charge similar fees, it is important to hire an experienced full-time Realtor®
Closing costs (includes transfer taxes, prorated property taxes, and legal fees)
2 to 4 percent of your sales price
In some states you prepay property taxes, which means you may get a credit at closing instead
of a bill. You may also get a refund of advance escrow payments you've made on your
homeowner's insurance. Check with your lender.
Mortgage payoff
The difference between your outstanding principal balance and what payments you will make
before your sale date.
If your loan has a prepayment penalty, add that to your principal balance. Ask your lender
to confirm your calculations. Some lenders charge a nominal fee for preparing a payoff
statement.
Pre-sale repairs
Varies. Older properties require more repairs than new ones, for example, and a well-maintained home may require none at all.
If your home is old or you haven't maintained it regularly, get a
pre-sale inspection to identify defects that
could scotch a sale.
Pre-sale cosmetic fixes
Varies from as little as $50 (three cans of $8 paint and $25 worth of screws, outlet covers, household oil, new furnace filter, cleaning solutions, for example) on upward.
Focus on fixes that will enhance your
home's salability, such as new paint and floor coverings.
The costs associated with selling a home can add up quickly. Before you sell, do the
math: Add your projected selling expenses to your moving costs. Then compare the
total to the expected sale price of your home.
Use this table to anticipate the costs of selling:
