Getting ready to sell your house? You may be itching to pocket all those dollars you think are headed your way, but don’t get too excited just yet. More factors go into selling a home than you might realize. Unfortunately, hidden expenses are one of those factors. Brush up on these eight surprising costs ahead of time to lessen the blow.
It’s a good idea to keep the utilities running until the very last day before closing on the sale. Not only will it help your real estate broker to demonstrate that the home is fully operational, but it can also help you prevent other issues.
For example, keeping some lights and A/C on during the summer or highly humid days can help your home stay mold-free. Molds thrive when the humidity levels exceed 70 percent. A running A/C cools the home, removes moisture from the air, and keeps the air inside circulated and filtered. Keeping mold in check will help you pass the home inspection and prevent additional fees. Another example would be turning off the water and ending up with an unappealing (and dead!) lawn, which sends potential buyers the wrong message about your property.
You also want to make sure that utilities are still on for your buyer’s final walk through. Consult with your broker for the right time (generally closing day or the day after) to turn off the utilities and settle those bills.
2. Repair and renovation costs
A fresh coat of paint, a thorough carpet steam clean, or a new toilet in the master bathroom can go a long way in increasing the appeal of your home. Budget for the cost of hiring a contractor or doing these necessary repairs yourself before putting your home on the market. Addressing repairs early can save you money in the long run and increase your chances of passing a home inspection on the first try. (See also: How Much Are Pricey Home Upgrades Really Worth?)
3. Seller credits to buyer
In the event that you are against dealing with repairs or renovations, you could extend to a buyer a seller credit to make up for the costs of fixing up the property. However, lenders cap the credit amount that a seller can extend to a buyer at 3 percent to 6 percent of the total mortgage.
Since the majority of buyers will ask for one, most real estate agents recommend that you budget for a range that you would be comfortable with in extending as a seller credit. This is in case your property stays on the market for far too many days. Cash-strapped buyers may request…