Closing costs are not the only cost of house selling. The process is complex and involves many moving parts. While you might be prepared for property taxes, real estate agent commissions and other expenses, it's best to prepare for every possible cost.
To make sure you budget accurately, here are some additional costs sellers typically pay:
Landscaping costs
Curb appeal can attract buyers both in person and online, so landscape maintenance is an important investment. This could include mulching shrubs, planting flowers, mowing the lawn, removing weeds and debris. While you can do yardwork yourself, new plants and supplies can add up quickly.
Home transition & overlap costs
It usually takes a couple of weeks to move from your current residence to your new one. You may have already purchased two houses and paid the ownership cost separately. This means you'll have to pay for storage space, transportation and other moving costs during that period.
If the transition is long enough, you may also need to budget for supplemental housing, such as a short-term rental or hotel room.
Capital gains taxes
When someone sells a property for a higher amount than the original purchase price, the IRS considers the amount as a capital gain. Capital gains tax are either short-term or long-term, depending on how long you've owned the property before selling it.
Seller concessions
It's common to incur additional expense to win over a hesitant buyer. Concessions are a valuable negotiation tool for both buyers and sellers, and can help keep a real estate transaction smooth and simple. For example, the cost of the home inspection or additional processing fees are covered by a seller concession.
Mortgage repayment
You'll likely use the proceeds from your home sale to pay off your mortgage, but you may actually owe more than the payoff amount on your statement. In this case, you'll have to factor prorated accrued interest to the total balance. There might also be a prepayment penalty to budget for. Consulting your lender and going over the details of your contract will help you prepare for these costs.
The cost to sell a home might seem daunting, but the more you prepare for these additional expenses, the easier the process will be.
About the Author
Meghan Riley
Hi, I'm Meghan Riley Bowling!
As one of Atlanta's top real estate agents and Atlanta Board of Realtors Lifetime 'Top Producer', I bring over 19 years of experience as both a Realtor and a licensed interior designer to the table. My extensive background uniquely positions me to be your best advocate in today’s dynamic market. I have a keen eye for a home's true potential and the expertise to navigate every twist and turn of the transaction process.
I understand what it takes to sell homes quickly and know how to create spaces that feel open, fresh, and inviting. For buyers, I excel at helping you envision the potential of a property, helping you find the perfect home to meet your needs.
With a commitment to excellence, I am your best source in real estate, offering dedicated service, strong negotiation skills, and deep market knowledge. I am your greatest asset to help achieve your goals!
