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When you need to sell your house because you’re in a financial bind, the added burden of hidden costs can feel overwhelming. We're sharing the top five hidden expenses to expect when selling your home traditionally.

1. Real Estate Transaction Fees

Real estate transaction fees add up! There are more fees than just the realtor’s commission. We often estimate that cost but forget about the others.

Listing Agent Fee: 3%

Buyers Agent Fee: 2.5%-3%

Escrow Fees: $2/$1,000 of the sale price ($1,200 for our example)

Title Search Fees: $250-$800

Mortgage Balance Payoff: The amount still owed on your mortgage.

Concessions: This includes any concessions, like a portion of the closing costs, that you agreed to pay at closing.

Transfer Fees: Varies depending on the county or city.

2. Professional Staging

While staging is not required, realtors will often recommend it for a quicker sale. Home staging is when a professional furnishes your house to appeal to a home buyer. Staging could be as simple as rearranging your furniture. Or, it could be as complex as painting, renting furniture, and completing small renovations. Professional staging can have a significant impact. In fact, staged homes sell 88% faster than unstaged homes. But it isn’t cheap. According to realtor.com, home staging costs $300-$500 for consultation + $500-$600 per room, per month, with a 3-month minimum. In our example house (3-bed/2-bath), if we staged the living room, dining room, one bedroom, and kitchen, it would cost $6,500.

3. Storage

When you sell your home, the first thing a realtor will add to your task list is minimizing. They will advise you to remove your personal items and unnecessary furniture. By keeping it streamlined, your rooms can not only look bigger, but anyone can picture themselves in the home. But, storing your personal items isn’t free. The easiest way to store your extra items is to order a pod or storage space off-site. We recommend using a pod because you can get that shipping container taken to your new home when you sell—one less thing to worry about. Using 3-months on the market as an example, expect to pay approximately $600 for storage space.

4. Repairs

During every home sale, the time comes to schedule the dreaded inspection. While it is a valuable investment for home buyers, it can be a scary period for home sellers. What issues could be lurking inside the walls? Inevitably, the inspector will find something - whether it be missing GFI outlets by the sink or termites infesting your garage. Either way, the buyer will bring it to your attention, and it will be your cost to fix. There are three options for paying. First, reduce the sale price in the amount to cover the repair. Second, have a professional repair the issue before closing. Third, up to 3% of the home sale cost can be applied as a seller credit, covering the costs for repairs.

5. Moving Costs

Moving is stressful and energy-zapping. Instead, you can hire professionals to pack, move, and place your belongings in your new home and remove that added stress.

You can expect to pay anywhere from $100 to $169 per hour per person for movers. If you’d like to add on packing, expect to pay $25-$40 per hour, per person + materials. Materials could cost $170-$250 per room. For our 3 bedroom, 2 bath example home, expect to pay $2,700 for a full day with two movers and $1,000 for packers and materials.

These are just examples, prices may differ in your area and for your situation, we just want you to be prepared!  Hire good realtor to help you, chances are they know how to help you cut cost and still get the job done. 

Happy Selling.

Evduza Ramaj

Inside Realty