Sellers today are taking advantage of rising property values. Many people consider how much they will make off the sale of their home, and neglect to factor in the costs associated with selling. 

Many of the fees that come with selling a home can be taken directly out of your closing check, while others need to be paid upfront. Here’s a breakdown of expenses that come with selling your home:

Closing Costs

Closing costs include all the fees that must be paid at the closing table. Buyers and sellers each have their own closing costs to cover. Below are the fees commonly included in the seller’s closing costs:

• Agent Commissions. The agent commission fee is typically split between your listing agent and the buyer’s agent. If you are selling your house on your own, you may still need to cover the commission of the buyer’s agent. 

• Transfer Tax. The transfer tax includes transferring the title of the property to the new owner. In New York, the tax rate is two dollars for each $500, up to one million dollars. Additional fees occur for properties over one million.  

• Miscellaneous Title Fees. Title fees ensure the title is clear and transferred to the buyer. 

• Equalization Fee. New York State collects an equalization fee, which aids in the home assessment process. 

• Attorney Fees. Many states require an attorney for closing day. These fees are typically due at closing. 

Preparing Your Home

Even in a seller’s market, you want to present your home in its best light. Doing so may incur costs upfront:

• Staging Costs. Staging your home can make all the difference in listing photos and live showings. You can stage on your own, or hire a professional.

• Repairs. Sometimes, you can take care of known issues before selling your home. Other times, a surprise may appear during home inspection. Either way, set some money aside for repairs. 

Other Expenses

In addition to getting your home ready to sell, you also need to factor in a new place to live, and in some cases, you may have additional taxes to pay. Consider which costs apply to your situation:

• Moving Costs. The further away you are moving, the more it will cost. Consider the price with and without professional movers.

• Costs associated with your next home. If you are buying a new house, you will need a downpayment and closing costs on the buyer side. If you already have a new place to live, you may be paying two mortgages while you wait for your home to sell. 

• Mansion Tax. In New York, there is an additional mansion tax for sales exceeding $1,000,000.

• Prorated Fees. You are responsible for property taxes up until your closing date, as well as HOA fees, when applicable. This can result in a prorated fee at closing. 

There will always be expenses associated with selling a home. In today’s market, sellers are getting top dollar for their home, making the expenses well worth it.  

Ready to learn more about the selling process? Contact us today.