Are You Thinking About Selling Your Home? Here Is What It Truly Costs

Are You Thinking About Selling Your Home? No matter the motivation for selling, understanding all that goes into the process and costs involved can provide valuable peace of mind when making this important decision.

Many homeowners are often taken aback to discover that selling is more complicated than setting the price and waiting for offers to come flooding in; rather, there are numerous expenses along the way that need to be considered and covered in order to sell successfully. Let's break this process down in plain language.

1. Agent Commissions

Agents usually earn a commission of 5-6% of the sales price when selling homes, typically split between your listing agent and buyer's agent. While that might seem like a significant sum, remember that an experienced agent handles marketing, negotiations and all the details that help your home sell for top dollar.

2. Closing Costs

Once the sale concludes, closing costs typically make up 1-3% of your home's sale price as fees related to title and escrow fees, transfer taxes and recording.

3. Repairs and Prep Work

Little updates can make an impactful statement about your home, such as fresh paint, landscaping improvements or professional staging to make photos and showings shine. No full remodel is necessary--investing in presentation can make a significant difference in how quickly (and for how much) it sells.

4. Payoff Costs

At closing, any remaining mortgage balance must be paid in full and any liens or HOA fees that may have accrued prior to transfer must also be settled before you can legally own the home are settled as well.

Assuming all costs have been covered--commissions, closing costs, prep work and payoff--it's not unusual for selling costs to account for 8-10% of the final sale price of your home.

That can sound daunting, but here's the good news: with proper pricing strategies and preparation most sellers still come away with substantial equity.

If you live in Corona and would like an estimate of how much net profit could come from selling your home, I am more than happy to create a tailored net sheet specifically for you. This document breaks down every detail so you have an understanding of exactly what to expect before listing your property on the market.