Tuesday, June 16, 2015

The Real Costs of Selling Your Lexington Home

First-time home sellers are typically in for a bit of a shock when they receive the closing statement. Yikes! It seems like everyone in town has their fingers on part of the proceeds from the sale of the home. From taxes to insurance to real estate fees, what you think you’ll get at closing is chipped away until it’s far less than what you expected.

Presale Expenses
Depending on the condition of your home, getting it in shape to put on the market may require a good chunk of money. Paint, cleaning, repairs, staging and renting a storage unit are just a few of the bills that may occur during this period.
The good news is that some of these costs can be recouped at closing. Following is the return on investment for some common jobs, according to a nationwide survey of real estate agents conducted by HomeGain:
  • Cleaning and decluttering – 403 percent.
  • Electrical and plumbing repairs – 294 percent.
  • Landscaping – 215 percent.
  • Staging – 196 percent.
  • Interior paint – 107 percent.

After cleaning and decluttering, painting the interior of the home is probably one of the most important prep jobs you can perform. Nothing says “clean” better than a fresh coat of paint. Stick with neutral colors to appeal to the greatest number of homebuyers.
Minor repairs are next on the list, especially of items that are noticeable to homebuyers. These include:
  • Sagging window screens.
  • Cracked windows.
  • Dripping faucets.
  • Running toilets.
  • Minor aesthetic improvements.

If you’ve lived in the home for some time and haven’t kept up on home maintenance chores, you may want to order a home inspection. Yes, your buyers will most likely order one, but this one is for you – so that there are no expensive surprises while the home is under contract.
The price of a presale inspection of the home varies depending on region, but plan to spend at least $200.
Other items you may end up spending money on to get the home in shape for the market include plants and mulch for the garden beds outside, decorative items such as throw rugs, new towels and a shower curtain, flowers, and artwork (if you aren’t hiring a stager).

Listing Expenses 
Expenses that occur during the listing period depend on whether or not you’re living in the home. A vacant home requires that you keep the utilities on. This means you’ll be paying for lights and heat in two homes.
You may also need extra homeowners insurance during the period the home is on the market. Ask your insurance agent if your current policy covers the house while it is vacant.

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