These are the hidden costs when selling your home

If you are using a real estate agent to help you sell your home, you are probably prepared to pay agent’s commission, but did you now that there are also other hidden costs that you might not have been aware of?

When speaking to a reputable, qualified and experienced estate agent, he or she will lay these costs out for you, but it is always good to know what you are letting yourself in for.

Here is a breakdown of some of the extra costs that you’ll incur when selling your property.

Maintenance costs

Before putting your house on the market, it is important to ensure that all maintenance to the property has been done. A house that seems dilapidated will struggle to sell, and maintenance is important when it comes to the first impression your property creates with potential buyers.

Moving costs

If you have been living in the property you are looking to sell, it goes without saying that you will have to move somewhere else. Moving costs is an expense that is often last on the list for sellers, but it can be quite costly and should not be forgotten.

Marketing costs

Aside from agent’s commission, which is a given, agencies might also charge for the marketing of the property. This includes listing on real estate websites, listing in newspapers, and professional photography or videos that may be used in marketing your property to buyers. Marketing is usually charged separately from commission, so confirm the cost for this with your real estate agent.

Bank charges

If you have a home loan with a bank, the bank will charge handling fees to close down your loan. Loans that are fixed for a certain amount of time will incur an exit fee, which could be quite large. Plan for this.

Legal fees

Should you employ the services of a conveyancer or solicitor to help you manage the sales contract and other legal fees, this will be an additional cost. Costs may vary, but it is of the essence that you use someone who is qualified and experienced.

Outstanding council rates and/or body corporate

Conveyancers and solicitors that are experts in property law can advise you about these, but outstanding council rates and body corporate (if the property is located in a townhouse or villa complex) need to be settled before the property changes hands. These fees are usually paid every quarter, so it could be possible that you have a month or two outstanding by the time of sale.

An experienced and qualified real estate agent will always be transparent about the amount that is charged for his or her services, aside from commission. Consult with your real estate agent about the other costs associated with selling your property, and he or she will recommend someone to help with the more technical financial aspects regarding the sale of your home.

 

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