If you don’t have much experience with the real estate market, you might think of the flow of money in simple, black and white terms—spend money to buy a house, make money when you sell one. Unfortunately, it’s quite a bit more complicated than that.
You already know that buying a home requires some extensive budgeting, but you’ll be spending a good chunk of change during a home sale too. It’s crucial that you prepare yourself and your bank account before you put your house on the market to ensure you get the most value out of your sale. Don’t forget to factor in these fundamental costs when you sit down to make your budget!
Repairs and Touch-Ups
Nobody is going to pay for a house that looks old, broken, and used. Once you decide to sell your house, one of the first steps to take is making necessary home repairs. Fix flaws that could turn off potential buyers—cracked windows, stained carpeting, a broken ceiling fan, etc.—to increase the value of your home.
After some thorough cleaning and maintenance, you’re going to want to touch up your interior and exterior paint jobs and tone down any crazy colors with a neutral coat. This will make your space look fresh and give it universal appeal!
Staging your home for sale makes all the difference for your potential buyers. It significantly boosts the appeal of your house and ultimately the value you get for it! It is highly recommended that you use a professional staging service to guarantee you attract the most buyers and best possible offers.
If you decide to try some DIY staging tactics instead, you’re still going to be spending money on new appliances, décor touches, and other necessary furnishings to set an engaging scene. You might as well spend that money paying someone with the experience and skill to accomplish a successful staging! Either way, factoring in staging costs is a must for every seller’s budget.
After you find a new home and sell your current property, there’s still the process of relocating to consider! Professional movers will be immensely helpful and relieve a lot of the burdens of packing and transporting your belongings—but they aren’t cheap. Make sure you allocate some of your funds to cover these costs.
If you decide to go the route of moving on your own, you’ll still have to spend some dough on packing supplies, truck rental, gas, and the pizza and beer you promised the friends that are helping you out!
First time home sellers can often be caught unawares by some of the costs required to close the deal. The biggest cut to your profit will, of course, be the commission you give to your real estate agent.
You’ll also be expected to pay a transfer tax in some areas, as well as a capital gains tax if the value of your home sale crosses a designated threshold. Don’t forget about those extra fees that pop up either—homeowner’s insurance, title insurance, mortgage loan repayment, and any other expenses agreed upon in your contract!
At Red House Staging & Interiors, we understand that a home sale isn’t easy—nor is it cheap. That’s why we offer several distinct staging services to meet the needs of any house or budget! Contact us today to learn more about which package is right for you!