It seems like everything from our phone bills to our plane tickets has hidden costs and fees that sneak up on us and take our money. It can be frustrating to be blindsided by little expenses that add up over time.
Even with large transactions, like buying and selling a home, all of the associated costs may not be upfront—especially with traditional home sales. You may not be prepared for quite a few extra costs associated with a conventional home sale. Here’s a list of the most forgotten expenses when selling your home so you don’t get blindsided by selling the traditional way.
Repairs and Renovations
If you sell your home on the market, buyers expect an updated home showing little to no signs of age, meaning you may need to upgrade damaged areas and older rooms. If anything is not up to standard, they will typically mention it in negotiations to lower the price.
If you want to get the most out of your home, you will likely need to pay for at least a facelift: some new paint, carpets, and even new tiles in the kitchen and bathroom. If you want your money’s worth, you may pay for a complete renovation or remodel. While this can help you fetch a higher price tag on your home, it does cost a lot upfront that you may not have been prepared to spend.
Even if you don’t renovate your home, paying for professional cleaning services to come into your home before showings can add up if you hire them constantly. While these services aren’t required, many home sellers use them to make their house look as good as possible before potential buyers scout the property.
Selling your home the traditional way may not suit you if you want to avoid renovation costs and repairs. Many as-is home buyers in Virginia Beach would be willing to make you an offer on your home in its current condition, removing the need for upfront costs that you would pay.
Marketing
If you choose to sell your home on the market, you will likely pay for your home’s marketing costs, whether through your real estate agent or other methods. Selling a home requires a great deal of advertising, communications, and marketing. Those fees can add up to a pretty penny depending on how long your home is on the market.
Commission
Working with a real estate agent may be the right decision for some, but you should be aware that these agents take a cut of your home’s sale as commission. In the Virginia Beach area, these commissions can hover around 6% of the value of the sale. While that may seem insignificant, when home sales reach hundreds of thousands of dollars, that 6% can turn into a considerable sum of money. With the average price of a Virginia Beach home settling around $400,000, that 6% commission turns out to be $24,000.
However, you can choose to sell your home without an agent to avoid costly commissions. While it may be daunting to handle the jobs of an estate agent on your own, choosing to sell to a company that buys houses in Virginia Beach can be an easy way to sell your home quickly and hassle-free. A non-traditional sale like this can ensure you get the most of your money in your pocket.
Taxes and Fees
There are quite a few taxes levied on the sale of your home that are your responsibility as the seller to handle.
It is your responsibility to pay any property taxes on your home that are fully paid for at the time of the transfer of ownership. Any property tax owed when you sell your home is your responsibility to cover. Virginia has a transfer tax scheme that is typically shouldered entirely by the home seller. These taxes can vary from county to county but usually run 10 cents for every $100 the home is worth.
If you were a part of a homeowners association (HOA) while in your home, any remaining fees owed to the organization should be paid by you. Additionally, if your home-buying process requires an escrow account to hold money while the process goes through, it will likely be your responsibility as the seller to cover any fees to keep the account open.
If you want to avoid the hassle of an escrow account and hefty fees when selling your home, consider selling to cash home buyers in Virginia Beach. Not only can they make you an all-cash offer that puts the money directly in your hands, but many of these companies also cover title costs and legal fees. These expenses typically fall on the seller in traditional sales. By covering these closing costs, companies that buy houses for cash in Virginia Beach simplify the process, allowing for a quicker and more convenient sale.