05/07/2022
Want a quick calculation on how much you can expect to profit from selling your home? Just take the selling price and subtract 10% to account for expenses.
For example, say you sell for $300,000. You can expect to pay roughly $30,000 leaving your profit around $270,000 (before your mortgage payoff). Wondering what’s in the $30,000? Here’s an overview:
Home prep costs: Think staging, lawn care, and landscaping projects.
Agent fees: Sellers typically pay 5-6% of the selling price for agent commissions.
Seller concessions: Although not as common in today’s market, a seller concession means you’ve agreed to pay some of the closing costs for the buyer like the inspection fee or title insurance.
Closing costs: These are fees paid by both the seller and buyer to cover the transaction costs. Expect to spend 1-3% of the selling price.
Not included in the above but good to keep in mind:
Capital gains: If you sell less than a year after moving in, you’ll pay this capital gains tax on your profit. Lived in your home for at least two years? You’ll bypass this tax on the first $250,000 of profit.
Home repairs: Because most buyers order a home inspection before closing, you’ll need to account for any major repairs.
Moving costs: How far you’re moving, how much stuff you’re taking, and whether you’re hiring professional movers will impact your moving costs. Purge first to save.
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