Here are 4 expenses you may incur when selling a home:
- Real Estate Agent Commission: Real estate agents typically charge a commission for their services, which is usually a percentage of the sale price of the home. Commissions are always negotiable. The commission is typically split between the listing agent and the buyer’s agent.
- Closing Costs: There are various closing costs associated with selling a home, such as deed preparation, pro-rated taxes, and attorney fees. Don’t forget to deduct your mortgage payoff and any additional liens on your property.
- Repairs and Renovations: Depending on the condition of your home, you may need to make repairs or renovations in order to get it ready for sale. This could include things like fixing a leaky roof, updating outdated appliances, or repainting the walls. The cost of repairs and renovations can vary widely depending on the scope of the work needed.
- Capital Gains Taxes: If you have owned your home for more than a year and have made a profit on the sale, you may be subject to capital gains taxes. The amount of tax you will owe depends on a number of factors, including your income level and the length of time you have owned the home. It’s a good idea to consult with a tax professional to determine your potential tax liability.