It is known that buying a house is a tedious process filled with last-minute cost additions and changes. However, selling your home is also not as easy as it seems. Especially in the Norfolk area, the total expenses of selling your home can go over 10% of the final budget.
Before you put your house on the market, you have to make sure that the house is appealing to any potential customer. Some of the hidden and unexpected expenses that you may find out about during the selling process include -
Cleaning and painting costs
Once you decide to put your house on the market, your house must attract the attention of any qualified buyer. This will depend on its appearance and its condition. A home that is filled with layers of dust and has a run-down look will not be attractive to buyers.
However, if the floors, walls, and furniture in the house are properly cleaned and have a fresh coat of paint, it is likely that your house will sell faster.
Landscaping and staging costs
The appearance of any property or a house is determined by its surroundings as well. This includes proper maintenance and tending of the yard or garden. If your house has a yard surrounding it, you have to make sure that it is properly watered and weeded before you put it on the market.
Another additional expense is staging. Staging showcases your house not just as a property, but as a home and helps your buyers envision their life in the house. This is mostly done by setting up an ideal ‘look’ for your home with trendy furniture, home accessories, and appliances. You can always rent this furniture or get help from professional property managers who can set up showings on your behalf.
Updating the utilities
As you sell your house, you need to look into the basic utilities to ensure that they are up to date. It is necessary to properly provide all the basic amenities like light fixtures, air conditioning, heating, and water resources in working condition.
Repairs and maintenance costs
If your house is maintained well, there can be an increase in the property valuation. However, this can be a costly affair if you haven’t gone over the repairs for a while. Fixing any leakages, checking the storage spaces, and repairing any structural damage to the house are some of the most important areas to focus on while repairing your soon-to-be-sold house.
Closing costs
While you sell your house to a new buyer, you will have to pay a fixed amount of fees and expenses of the transaction. This includes paying off the remaining mortgages, outstanding taxes, bills, fees, and an attorney fee which is required in the state of Virginia. Closing costs can be a surprise expense especially if you are a first-time seller.
Capital gains tax
After closing the sale of your house and turning a profit, you are required by law to pay capital gains tax. The difference between the buying price of the house and its selling price is the basis of how much capital gains tax you will have to pay. You can subtract the cost of any improvements that you have made in the house, as long as you provide the relevant bills and documents.
It is essential to factor in all these additional costs if you are planning on selling your Norfolk home. You can take help from trusted property managers like Doud Realty Services, providers of complete property management services in the Norfolk area.