When it comes to selling your home, certain expenses are expected. Most people will be buying a new place to live, even if they are downsizing, so the idea of needing to be prepared for a down payment usually doesn’t catch people by surprise.
But there are other expenses that may be less expected and fairly costly. Use this checklist and talk to your registered real estate agent to see which ones may apply to you so you can go into the sale of your home fully informed and prepared.
Closing costs include your real estate agent’s commission but they also include any other administrative fees, legal fees, and taxes.
Here are some of the administrative or legal fees you may encounter when selling or buying a home in Bucks and Montgomery County Pennsylvania:
• Deed preparation
• Real estate tax certification
• No lien letters: varies in PA from a few dollars to a couple hundred
• Closing fee
• Document prep
• Occupancy permit: cost varies, and whether this is paid by the seller or buyer depends on the municipality
• Notary fees and overnight mailing fees
Beyond this, the State of Pennsylvania charges a 1% sales tax, and the school district and municipality together generally charge another 1% for a total of 2%. Buyers and sellers usually split this cost, but your purchasing agreement may spell out different terms.
Prepping your home for sale is another area that needs to be factored into the overall cost of selling. Here are some of the ways home prep may contribute to your selling costs:
• Home improvements: If you know you are selling your house, you may choose to make some strategic improvements to add to the value of the home, like waterproofing the basement, or getting central air conditioning.
• Home repairs: You may decide to do some repairs in advance of putting your home up for sale, but a prospective buyer may also request additional repairs based on the home inspection. These can include anything from plumbing to roofing to addressing environmental hazards like mold or damage from termites.
• Staging: It’s important to get your home ready for showings, so prospective buyers can imagine themselves living in the space and making it their own. Whether you hire a professional stager or do it yourself, there is likely to be some cost involved with making your home ready for open houses and showings.
With the right knowledge and guidance, selling your Pennsylvania home can be a rewarding experience and a sound financial move. By knowing in advance what to prepare for, you’ll be well on the road to making a profitable sale. If you have questions about the cost of selling your home, be sure to talk to your registered real estate agent!