When it comes to putting a house on the market, most homeowners understand that they must spend money to make money. If you are listing your house for sale, you have probably already braced yourself for expenses like closing costs and agent commissions. However, almost inevitably, home sellers find themselves hit in the pocketbook by costs they did not anticipate, throwing their budget off kilter in the process. Let’s take a look at four common hidden costs you might face when selling your home.
1. Staging
In a competitive real estate market, staging can make a huge difference in how quickly you sell and how close you get to your asking price. If the house is vacant, you should have a few pieces of furniture and decoration put in to help buyers visualize. If the home isn’t vacant, you may need to remove some clutter. Either way, it may be much easier to hire a staging professional to help you, which, here in Atlanta, can cost anywhere between $300 and $1,000 depending on whom you hire and the size/location of your home.
2. Landscaping
Sometimes basic lawn care, weeding and hedge trimming are not enough to provide your home the curb appeal it needs to attract buyers. In some cases, you may want to completely update the landscaping around your home, which can cost between several hundred and several thousand dollars, depending on how extensive the changes are (since you are basically landscaping to sell, think of it as staging the outside of your home).
3. Unexpected Repairs
Once your home is under contract, the home inspector may turn up any of a number of red flags — and if the problems are significant, your buyer may want to negotiate with you to have some things fixed before you go to the closing table. If you want to save the deal, you may have to spend thousands of unplanned dollars on repairs you might not have even known your home needed.
4. Capital Gains Taxes
Do not forget — good ‘ole Uncle Sam wants his share of your profits. Capital gains taxes are easy to overlook because most of us do not sell our real estate every year — but unless you qualify for certain exemptions, you may owe considerable taxes on the proceeds from the sale of your home. Granted, you will not feel the sting until next year at tax time, as the only notice you receive is a 1099-S with your closing documents, but if you do not set the money aside, you may face a rude awakening in a few months.
While it may be impossible to predict exactly how much these hidden costs will run, home sellers can blunt the blow by planning ahead and setting some money aside for unexpected expenses. When you are ready to sell, an experienced agent can provide useful advice to help you prepare. To learn more, call Atlanta Fine Homes Sotheby’s International Realty at 404.948.4812.