To put it simply: There are a number of different costs to consider when selling a home. In fact, it may turn out to be a greater financial investment than you can currently commit to. There is absolutely nothing wrong with such a decision. Too many people move recklessly forward, without even considering the short-term and long-term costs that are associated with buying a house.
By being able to identify these costs, you should be able to construct a strong budget that will be easy enough to stick with.
Identifying The Key Costs Of Selling Your House
A good budget can make things a lot easier on you, and in a variety of different ways, as well. Here are some costs to keep in mind:
- Conveyancing: This refers to the act of transferring legal ownership of properties from one individual to the next. Using a local solicitor is your best move. Remember to chat with your real estate agent for more information on the best way forward here.
- Marketing costs: Remember that marketing campaigns are not exclusively the province of companies and marketers. To a certain extent, your desire to sell your home is going to require a certain kind of marketing campaign. Putting a sign out front, local advertising, listing your home on reputable websites, and other marketing demands can wind up costing you several thousand dollars.
- Agent fees/bonuses: Don’t forget that good real estate agents tend to have the price tag to match. That doesn’t even cover bonus fees, in the event your agent sells the home early, or sells the home at a price significantly above asking.
- Government charges: This includes stamp duty, registration expenses, and other items along similar lines.
- Discharge of mortgage: This isn’t always applicable.
- Capital gains taxes: Unless you have been in your home for the entirety of owning the property, you can expect to pay some capital gains taxes.
- Exit fees: If you’re getting out of a loan early, doing so may cost you a little.
- Prep work: Getting the property ready to sell, which can include making improvements and repairs, is yet another area in which costs can rise to dizzying heights.
- Outstanding rates: This can include outstanding council rates and outstanding body corporate. But these sorts of things can depend on your circumstances.
Don’t let this list intimidate you from selling a house! Not all of these are inherently applicable, and there are certainly things you can do to keep some of these costs down.
