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How much money do you keep when you sell your home
The real estate market has been incredibly hot in recent years. 2021 alone saw more than 6.9 million home sales in the U.S., and many say that it’s a great time to think about selling.
If you’re a homeowner and are considering selling your house, you might be expecting a huge payday. However, there are many costs associated with selling your home. Things like Realtor fees are ones that people expect, but there are lots of others you may not think about. The full amount doesn’t go right into your pocket – in fact, all in all, you might only see 60 to 70 percent of the home’s value when you sell.
Average costs to sell a home
Whenever you sell a home, the old adage that it takes money to make money holds true.
The first thing you’ll want to do is hire a real estate agent to help you with the process. They can give you advice to help you prepare your home for sale and organize showings for potential buyers. Your agent will also help you throughout the process of receiving offers, comparing them and going through with closing. Of course, an agent must be compensated for their services, which is one of the largest costs related to selling your home. Typically, agents get a percentage of the home’s purchase price when a sale closes.
Some of the other things you’ll do to prepare your home for sale will also cost money. If you own a home worth $500,000, for example, these are some of the costs that you can expect to pay.
| Realtor commission | 6% or $30,000 | $470,000 |
| Prep work | $1,450 | $468,550 |
| Pre-listing inspection | $375 | $468,175 |
| Repairs | $500 | $467,675 |
| Mortgage payoff | $150,000 | $317,675 |
| Closing costs | $3,500 | $314,175 |
| Remaining bills on property | $1,000 | $313,175 |
| Moving expenses | $1,650 | $311,525 |
| Storage | $500 | $311,025 |
Agent commission
One of the biggest costs that homeowners pay when selling a home is agent commission. Most transactions involve two agents: one employed by the buyer and one employed by the seller. Typically, the …….