THE HIDDEN COSTS OF SELLING YOUR HOME( YOU DIDN’ T EXPECT) BY JEET SANGHA & GINA HERRERA
When you think about selling your home, you probably focus on the sale price and potential profit. However, many homeowners are surprised by the hidden costs that can chip away at their proceeds. If you’ re planning to sell in Gilroy, Morgan Hill, or anywhere in the Bay Area, it’ s important to be prepared.
Common Misconceptions
Many people believe selling a home is just about listing it, finding a buyer, and cashing the check. However, several hidden costs can sneak up on you. These expenses can significantly affect your bottom line if you’ re not prepared.
Hidden Costs To Watch Out For
• Closing Costs: These can total 6-10 % of the sale price, covering escrow fees, title insurance, notary fees, and county transfer taxes. The good news? Gilroy and Morgan Hill don’ t charge a city transfer tax, unlike San Jose and other major cities.
• Repairs and Maintenance: Even if your home seems in good shape, buyer inspections may uncover issues like roof repairs, termite damage, or plumbing problems that need addressing before closing.
• Staging and Presentation: To boost appeal, consider professional staging, deep cleaning, fresh paint, or landscaping. Costs vary but are key for a strong first impression.
• Seller Concessions: In competitive markets, buyers may ask for concessions, like help with closing costs or repairs, which can reduce your net proceeds.
• Tax Implications: If you’ ve gained significant equity or are selling an investment property, consult a tax advisor about capital gains taxes and other potential costs.
• Pre-Sale Inspections: Some sellers opt for pre-sale inspections to catch issues early, saving time during negotiations. In Morgan Hill, a sewer lateral inspection is required before closing and may result in repair costs.
• Agent Commissions: While commissions are expected, even with the 2024 NAR settlement decoupling them, sellers may still pay both their agent’ s and the buyer’ s agent’ s commissions.
• Moving Costs: Don’ t forget moving expenses, whether hiring professionals or renting a truck. Costs vary based on distance and belongings.
• Well and Septic Inspections: Rural properties may require well and septic inspections, including septic tank pumping, crack checks, and water quality tests.
Selling a home involves more than just finding a buyer. By understanding these hidden costs, you can plan ahead, avoid surprises, and ensure a smoother, more profitable sale.
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