Thinking of selling your house but worried about the costs associated with it? I have a saying that I picked up from somewhere…’fear is ignorance; knowledge is power’.
I’m going to try and expose you to the most common costs of selling your house.
Here we go…
One of the first and obvious costs of selling your house are property taxes. In Hillsborough County, property taxes are paid in arrears (paid at the end of the tax year). So, at the time of closing, sellers will have to pay for their portion of the taxes based on the number of days they possessed their home.
For example, say that taxes for a property located at 123 Main St has annual taxes of $3,500 and a closing date set for March 2. First, calculate the daily tax rate - $3,500 / 365 days = $9.58 / day. Assume that the day of closing (March 2) is charged to the buyer. The seller will pay for 60 days of taxes (January - 31 days; February - 28 days; March - 1 Day).
Now multiply $9.58 x 60 days = $574.80. So the seller is responsible for paying $574.80. The closing statement will show a debit to the seller and credit to the buyer for that amount.
Documentary Stamp Tax On Deeds
In Florida, there are three types of state taxes that apply to deeds, notes and mortgages as it pertains to the transfer of real property. For purposes of this blog, I'll only cover what the seller is responsible for.
'Doc stamps', as they're commonly called, charge a rate of $.70 for every $100 of the purchase price. If a house sold for $250,000, then the doc stamps amount is $1,750 ($250,000 / 100 = $2,500 x $.70).
This is one of the major costs of selling your house and understandably so. Generally speaking, most full-service brokerages charge fees ranging from 5% - 7%. The important issue here is the value you get for that fee. Long gone are the days when Realtors® were the only sources of buying and selling properties.
What's needed from real estate agents today is a true marketing plan. A sign in the yard and MLS may not be enough, especially in today's market. With over 10 years in the marketing field, my home-selling marketing plan is aggressive and effective in attracting buyers. I'm also a customer service freak and created my own service system. Read up about my VEST system here.
Attorneys - It's not mandatory but recommended to hire a qualified real estate attorney to help, especially when needing to interpret contracts. Typically, lawyers will charge between $500 - $750. Please be aware that regardless of the experience, Realtors® are not allowed to interpret contracts nor give legal advice.
Repairs - Once an offer is accepted from the buyer, you go through an inspection period. During this time, the buyer will typically hire a home inspector and come back with a list of repairs. No two homes are alike, so repair costs will range depending on several factors. But, the important lesson here is to budget for it and expect that the buyer will request it.
Staging - The process of buying a house is an emotional experience and creating a lasting first impression is critical. Therefore, it's highly recommended to walk your house and just de-clutter! Remove anything and everything that may considered an eye sore to potential buyers. I understand that certain items hold sentimental value and may be difficult to put away. Just remember that the purpose here is to make your house visually appealing and remain top of mind!
You may take it a step further and hire a professional home stager.
So you see, there are a few things to consider before putting up your house for sale. While the costs mentioned above might seem overwhelming, know that a good Realtor® will have an awesome and aggressive marketing plan, such as myself, that essentially pays for itself.
Call, text or email me to see how I may help market your home.
Have any real estate questions? Please hit me up with a reply in the Comment box below or send me an email to [email protected] and I'll be glad to answer.
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