The cost of selling a house can be surprisingly high. For a move that is supposed to make you money, the costs of repairs, closing, Realtors®, moving, taxes, and other fees mean you could lose out on up to 10% of the final sales price for your home. Let’s look at the cost of selling a house in California, as well as some tips for selling your home for the most profit.
The Average Cost of Selling A San Fernando Home
The average home value for a property in California was $549,671 in 2019, so we’ll use that for our example. Let’s say that you sold a house for that much. If you did, you could end up having to pay over $74k to make the sale final.
How much it actually costs to sell your home can vary, but you should expect it to take up to 10% – if not more – of the final sale price for your property.
Where Does the Money Go?
10% of the real estate values in Los Angeles is usually what you can expect to pay, and it is important to have an idea of how the money is used. The money goes towards several things, the costs of which we’ll look at now.
Commission Fees
One of the largest fees a home seller has to pay is the commission fee for their realtor. These fees can be up to 6% of the sale price of a house. If you sold your home for $250,000 that works out to $15,000 in commissions. The commission is split between the agents for the buyer and seller. These costs are covered by the seller more often than not.
Sellers may be willing to negotiate for a lower commission. You could also choose to sell the house yourself and list it as For-Sale-By-Owner (FBSO) but that isn’t recommended. Selling a home yourself means assuming all the duties of a real estate agent, such as handling negotiation, marketing, showing, closing, and everything else a realtor is expected to do. It’s easier to just pay the commission.
Home Repairs
Most homes would benefit from a little TLC before being put on the market. One of the tips for selling your home is to spruce it up a bit first. If you’ve considered doing some repainting or repair work in the house before, now would be the time to make it happen.
The real estate values in Los Angeles can vary depending on the condition of the home. Take care of any issues pointed out by the home inspector and consider making some small changes that can make a huge difference, such as replacing bathroom tiles and repainting the walls in a neutral color.
Home Inspections
The home inspection is entirely optional, but you should still consider it. Home inspections cost around $400 but they give you a much better idea of what your property is worth. A home inspector can also offer advice about problems that could affect studio city home prices.
Address the issues brought up by an inspector and you can more than make back the money it costs to hire one. Having a home in good condition also increases buyer demand so your home will sell faster.
Home Staging
A home that is staged to sell is a home that sells faster – and for more. People who visit your home want to imagine their lives there. It’s up to the stage to help them do that. A professional staging service costs around $400 and can offer a real boost to your property.
Stagers will do what they can to make your home look its best. Stagers rearrange furniture and use accessories to decorate a home. They also declutter and personalize your home. A stager may even repurpose rooms in ways you never thought possible.
Closing Costs
The closing costs of a home generally fall on the buyer, but a seller could be asked to cover the costs. These costs include things like homeowners association fees, attorney fees, transfer taxes, property taxes, and title insurance. These costs could add up to around 4% of the sale price of your home.
The good news is that many of these costs are negotiable. You probably won’t have to pay for all of them, but it never hurts to be prepared.
Taxes
Home sales, like everything else, are subjected to taxes. If the sales price is more than you paid for your home then the sale is covered by capital gains tax. The good news is you can exclude up to $250,000 of profit from your taxes, provided you haven’t used this tax break on another home within the past two years. You can only claim this tax break if the home you sold was your primary home for at least two years of the past five.
Final Thoughts
Selling a home can cost more than you might think. Be sure to discuss the costs, fees, and taxes with your real estate agent if you need more information. It is vital to have an experienced real estate agent at your side that can help you secure the best price. Get in touch with expert real estate agent Arman Grigoryan at (818) 444-7700 or send an email to [email protected].
