As the economy sees a bounce back in 2021, it seems like the ideal opportunity to move house and step up the property ladder.
But before you put your house on the market, you might be wondering if you have the budget to complete a house sale.
In this short guide, we’ll outline the typical expenses you’ll incur when putting a house up for sale, and we’ll reveal the average cost to sell a house.
Home Improvements
If you want a high sale price, you need to spend money upfront making any obvious or vital home repairs.
Costs will vary depending on the complexity of the project. However, as a guide, the average cost in 2018 for home improvements was just over $6,000.
Agent Commissions
One of the most significant expenses of selling a home is the commission you’ll pay out to your real estate agent.
Typical commissions for a house sale are between 5-6% of the sale price.
House Staging
If you want a quick sale, you might want to look at ways to speed up your house sale like contacting these home buyers.
A professional staging company can give your house that finished look-and-feel that can help close a sale. Staging varies depending on how much you need from a staging company.
Expect to pay between $400-$3,000 for this type of service.
Professional Photography
Before listing your home, consider investing in an experienced professional photographer. Good lighting and angles will help boost the number of house viewings you get. $200-$500 is an accurate figure to add to your budget.
Home Inspection
As a homeowner, you have the option of paying for a pre-sale home inspection report. That is a helpful part of the home selling process as it will highlight any problems that could halt a future sale.
You don’t have to pay for a home inspection, but if you want to have this report, budget around $400.
Closing Costs
Closing costs include a range of legal and financial fees payable when the sale transaction takes place.
Closing costs include:
- Loan fees
- Mortgage insurance fees
- Property taxes
- Annual assessments
- Insurance premiums
- Title fees
- Mortgage closing documents
The average U.S. closing cost was $5,749 in 2019. Budget for around 3-6% of your property value.
Moving Fees
What you spend on moving costs will depend on whether you plan to move most of your belongings and furnishings or hire a removals company to do the work for you.
If you hire a removals company, allow around $600-$1,000 for a small two or three-bed house for a local move.
If you are moving long-distance, have large or complex items to move, expect to pay a lot more but shop around for a competitive price.
Home Warranty
An optional expense to make your sale more attractive to a buyer is to pay for a one or two-year home warranty cover. That will set you back around $600 but is worth considering if you need a quick sale.
Mortgage Payoff Expenses
If you plan to pay off your mortgage after selling a house, some mortgage deals will include a penalty cost for early repayment. Check with your existing mortgage provider to see if you are liable for these types of fees.
The Average Cost to Sell a House
Altogether, the average cost to sell a house is around 15% of the price of the home you are selling.
You can use this figure to assess whether you have the budget right now to sell your home. If you are a little short, there are some costs you can drop, or you can put your house sale plans on hold for the time being.
Do you think it’s a good time to sell? Share your thoughts in the comments below and keep checking out our site for more home advice.
