Quick! What’s the first thing you wonder when you decide to sell your home in Billings? If you’re like most of our listing clients you have a burning desire to know how much money you’ll make when it’s all said and done.
Easy, right? Just take the sale price, deduct what you owe on the mortgage and, voila! You end up with your proceeds from the sale.
Let’s take a look at some of the common expenses involved with selling a home in Billings.
Before you put the home on the market
If your home is in such pristine condition that a buyer can move right in and not have to clean or make even minor repairs, skip this section.
If, on the other hand, your home is like the majority of other homes for sale in Billings, you’ve got work to do (and money to spend) before we even list your home in the Billings MLS.
From painting to landscaping to plumbing and other repairs, pre-market tasks will help you get the money you want from the sale. Don’t perform them and you can plan on getting rock bottom for your home.
Thankfully, you won’t have to pay for staging (we provide free staging to our clients) or a pre-sale home inspection (ditto).
More money during the marketing period
If your home will be vacant during the marketing period, plan on paying utilities both at your new home and this one. Yes, you need to keep the utilities running, regardless of occupancy. The buyers will want to have the home inspected and test the systems.
You may also need to pay for additional insurance coverage if the home sits vacant. Call your homeowner insurance agent to find out.
Then, there are all the little things you pay for monthly that you’ll need to continue to pay even if the home is vacant – pool service, landscape maintenance, HOA dues, etc.
Expenses while the home is under contract
What if the buyer’s home inspector finds problems with the home? To keep the buyer, you may need to come out-of-pocket for the necessary repairs. Depending on what needs fixing, you could be on the hook for some major bucks.
Our pre-home inspection should alert us to the major repairs needed, so this won’t come as quite a shock if you list your home with Realty Billings.
Another thing to consider is the appraisal. If you overprice the home, the chances increase that the appraisal will come in lower than the sale price. While there are several ways to deal with this, the most common is that the seller lowers the price of the home. While this doesn’t incur an expense, it does change your bottom line at closing.
Many homeowners who decide to go it alone in the sale of their homes do so because they want to save money. Sure, you’ll save the brokerage fees. But, you’ll be paying for your own staging and other marketing for the home. Believe me, it’s not cheap to market a home for sale.
Then, there are the legal fees involved, the cost of signs, a lockbox if you’ll be using one, MLS fees, and the contracts and forms you’ll need to purchase. Plus, factor in what your time is worth because you’ll be spending an inordinate amount of it on showings, open houses and dealing with your buyer.
Expenses at closing
Like those of the buyer, seller closing costs vary. Since the seller pays the real estate commission, you can plan on this expense. But some buyers request assistance with their closing costs, and there are taxes to pay, notary fees and you’ll pay for part of the closing and title fees, the abstract and others.
Although you’ll receive a breakdown of your closing fees in advance of closing, I can help you come up with a ballpark figure of your net proceeds when you get an offer on the home.
By the way, Realty Billings has a list of seller services that will save you money when you sell your home in Billings.