What Expenses Will I Pay When Selling My Winston-Salem Home?
Since buying a home is a significant investment, not everyone can afford their dream home from the very beginning. Thus, many choose to invest in a starter home and only later start looking for their forever home. And this is perfectly normal. Nevertheless, once you decide to sell your current home, the excitement can make you blind to some of the crucial aspects. You start dreaming of your future home and fail to properly consider what selling entails. For example, you must know what expenses to expect when selling your Winston-Salem home. Otherwise, you might miscalculate the amount you can invest in your future home. So, let’s break down the costs of selling a home.
Expenses to expect before selling your Winston-Salem home
The truth is that many people forget about the expenses that come before the actual sale of a home. After all, if you want to be able to afford your dream home, you need to make a profit from the current one. This means that you need to do whatever you can to increase it's value. If you're wondering what your Winston-Salem home is worth, the best way to know is have an appraiser complete an appraisal. That way, you have a better idea of what you can sell your home for. It might mean investing some money to spruce it up a bit. Of course, it all depends on your budget. You don’t have to go overboard if you can’t afford it. Just remember that any minor improvement can have a major impact.
Expenses related to home repairs and updates
Unless you are selling your home "AS-IS", you should start with all the necessary repairs when preparing your home for sale. Since homebuyers usually request a home inspection, you’re only delaying the inevitable. If you don’t take care of the repairs now, you may have to do them later. Not to mention that a poor home inspection report can lead to a reduction in the sale price. And, of course, the costs of these repairs depend on how extensive the damage is.
Furthermore, if you’re interested in increasing property value, you should consider some home updates. Once again, it all depends on your budget and how pressed by the time you are. If you’re in no rush to relocate, then you can take your time. Assess every room and replace or recondition anything that looks worn out. This will have a significant impact on potential buyers.
A real estate professional can help you determine if you need to make repairs or updates, and if so, which ones are most important. In a seller's market, like we're currently in, less repairs and updates are needed. But the market is shifting with listings not getting as many showings, price reductions, and homes taking a little longer to sell. If you want to get the most money in the shortest time possible, it's best to consider repairs and/or updates...if you can afford them.
Expenses related to improving the curb appeal
Improving your home’s curb appeal is one of the best ways to attract homebuyers. Like when you meet a new person, the first impression is critical. And when it comes to your home, the outside is what buyers see first. So, you should make sure that the paint is in good condition. Otherwise, you have to repaint. Then, assess the landscaping. Make sure that you regularly mow the lawn and trim the bushes. And you should also consider investing in some local plants if you have none. All of this will make your home more inviting for potential homebuyers.
Expenses related to staging your home
As any good Realtor will tell you, staging is key for attracting buyers. Therefore, when you decide it’s time to sell your home, you should also invest a bit of money in this. To properly stage a home, you should depersonalize it as much as possible. First, you have to remove all your personal belongings. Then, you should think of ways to make your home more neutral.
For example, the most cost-efficient solution is to add a fresh coat of neutral-colored paint to the walls. Then, you can invest in a new area rug, some cushions, and curtains to make it feel cozy. But remember, always use neutral colors because bold colors can scare off potential buyers. Furthermore, if you can afford it, you can also invest in some new essential furniture items.
Expenses to expect when selling your Winston-Salem home
Once you’ve finished preparing your home for sale, it’s time to get down to business. So, let’s look at what expenses to expect when selling your home.
Expenses related to your real estate agent
When you have a job and a family to take care of, you don’t have the time or patience to talk to every potential buyer. Not to mention that the entire process can take months. So, hiring a real estate agent is your best option.
A professional will know exactly where to list your home and has a lot of useful contacts that can help speed up the process. Furthermore, the Realtor will schedule viewings, take care of the paperwork, and can even negotiate a better price for you.
Nevertheless, all this work needs to be compensated. Therefore, you should know that real estate agent commissions are around 5-7%. This commission is split between the seller’s and the buyer’s realtor. However, the seller usually covers the costs.
Expenses related to taxes
Surely you know by now that every income is subject to taxes. And selling your home is no different. So, be prepared for the following:
· Excise taxes are payable in North Carolina by the seller. It's basically a sales tax for selling your home, land or any real property. The easiest way to figure the North Carolina Excise Tax is to take the sales price and divide by $500. So, if your home sells for $300,000, you will owe $600 in excise tax, also known as "deed stamps" or "transfer tax".
· Property taxes are mandatory. So, ensure you’ve paid your county property taxes for the previous years. As for the current year, the property taxes are prorated. You will pay only the share for the time you owned, and the buyer will pay the remaining since they will be living there for the remainder of the year.
· Capital gains tax does not apply in North Carolina when selling your primary residence. It only applies on investment property. In any case, you should speak with your tax advisor to see what you should expect.
Expenses related to moving
Moving expenses vary depending on where you relocate. However, don’t fool yourself into thinking that you can move everything on your own or with help from some friends. Surely, you can use their help with the small stuff, but you should leave the rest to the professionals. This way, all your valuables will safely reach their destination. Plus, it will make the entire process less stressful.
Now, if you want to get the best deal, you should research different options. Contact multiple residential movers and ask for estimates. And whatever you do, don’t wait until you sell your home to look for movers. You will be pressed by the time and unable to do some proper market research. Thus, you might end up paying more than the market value.
Average cost to sell a home in Winston-Salem, North Carolina
How much does it cost to sell a home in Winston-Salem, North Carolina? Well, of course, it depends on each seller's situation, but you can expect to pay roughly 10% of your home's final selling price. So, if your home sells for $300,000, your total cost/expenses will be about $30,000. It could be slightly more or less depending on your individual situation.
A list of seller expenses include:
- Prepping for sale (appraisal, pre-listing inspection, repairs, cleaning, staging, etc.)
- Realtor fees (approximately 5%-7%)
- Your seller closing costs (excise tax, deep preparation, attorney fee, property taxes, etc.)
- Any seller paid closing costs for the buyer (seller concessions)
- Relocation expenses
It is very exciting to decide that it’s time to sell your current home and start looking for your dream home. However, it it is smart to carefully analyze all the aspects. And one factor that you shouldn’t overlook is what expenses to expect when selling your Winston-Salem home. This is essential for setting a clear budget for your future home. Plus, it will help you determine how much you can afford to invest in your new home as property values are increasing before the sale.
If you are thinking about selling your home and would like an estimate of your expenses, don't hesitate to reach out to us. We will gladly provide a Seller Net Sheet, which shows your approximate net proceeds when you sell your home. Call/text Green Haven Realty today at 336.462.9544. Or direct message us here: Contact Green Haven Realty. We're here to help!