Are you planning to sell your home in Minnesota? It’s important to be aware of the expenses involved in the process. Many homeowners overlook the costs associated with selling their property, such as fees and other expenses. In our latest post, we’ll provide you with a breakdown of the costs you can expect when selling a home in Minnesota.
When deciding on how to sell your house, remember that listing it with an agent will require upfront costs and expenses that will be incurred after the sale closes. These costs should be taken into account when determining the sale price and selecting the best partner to work with.
Based on studies, the average cost of selling a home in the US is approximately $15,200. However, keep in mind that this figure can vary significantly depending on your location and the value of your property.
Will Selling Cost You Money in Minnesota?
Agent Commissions – When working with an agent, it’s important to note that their commission typically amounts to 6% of the final sale price of your home. This percentage will be outlined in your listing agreement, so you’ll know exactly what to expect. Although the commission is not paid upfront, it will be deducted from the proceeds of the sale, which will affect the final amount you’ll receive.
As a result, it’s essential to keep the commission in mind when determining the sale price of your home. By factoring in the commission, you can ensure that you’ll still receive the desired amount when the sale is completed.
Agent Fees – In addition to the commission, some agencies may charge additional fees throughout the selling process. For instance, marketing and listing fees may be passed directly to the client by some agents. It’s important to understand what is included in the services provided by the agent and what additional expenses you may have to pay for at the end of the process.
To avoid any surprises, make sure you ask your agent to provide a comprehensive breakdown of all costs involved in the selling process, including any potential additional fees. By doing so, you’ll be able to accurately budget for the sale and ensure that you’re not caught off guard by unexpected expenses.
Closing Costs – When selling a home, it’s important to remember that there are also various closing costs that need to be taken into account. These expenses are typically paid at the closing table and can include items such as transfer fees, title insurance, title search fees, recording fees, transfer taxes, appraisal costs, discount points, credit report fees, and more.
On average, you can expect to pay around 2% of the final sale price in closing costs. It’s important to note that these costs can vary depending on a variety of factors, including your location and the terms of the sale. Make sure to discuss all closing costs with your agent and review them carefully before the sale to avoid any unexpected surprises.
Taxes – When you list your home for sale, it’s important to keep in mind that you’re responsible for the property taxes, utilities, and homeowner’s insurance until the day of closing. These expenses can add up to thousands of dollars, particularly if it takes a few months for the property to sell and close.
To minimize these costs, it’s essential to sell your home as quickly as possible once you’ve decided to list it. By doing so, you can avoid accruing additional expenses and maximize the amount of money you walk away with after the sale.
Preparing Your House for The Market – There is a lot of energy, time and money that go into getting a house ready to sell. There are repairs to make, walls to paint and carpets to clean. You will want to remove personal belongings and stage the home for selling. Whether you work with a professional or do it on your own, you are likely to spend money on new decorative pieces in the house. You should also clean up the yard but also consider some new landscaping to bring more curb appeal to the property.
Inspections – While it certainly isn’t required, more and more sellers are paying to have their home’s inspected before listing them. This will cost approximately $200 and up. By doing an inspection before you list, you will be able to address any issues with the home before thy pop up in your buyer’s inspection. This will also give you negotiating power during the selling process.
Storage and Moving – While moving isn’t technically a selling cost, it is a large expense you will have to make once the house closes (if you haven’t done so already.) Whether you hire movers or do it yourself, moving can get expensive! How far are you going? Will you need a truck? Or pizza to bride your friends? You will also want to consider storage costs if you are living in the home while waiting for it to sell. Packing up unnecessary items ahead of time will make the house look nicer and give you an edge when it’s time to move.