Are you on the fence about selling your home in Jesup, Ga because you aren't sure if it's a sound financial decision. You may already know some of the expenses associated with attracting potential buyers, but may need a complete breakdown of the rest. Read on and we will cover the things you may have missed.
1. Real Estate Commission
The real estate commission may be one of your biggest costs of selling your home in Jesup, Ga. The average real estate commission ranges from 5-6% of the home sales price. Your listing agent will perform tasks such as:
-Helping you determine the asking price
-Identify key selling points
-Coordinate showings with buyers
-Make sure buyers have financing
-Negotiating with buyers on your behalf and more.
2. Home repairs
Another cost to factor in is the home repairs you must make to get your home ready for the market. If you enhance the appeal of your home, it may potentially raise the value of your home.
Keep in mind that your house is competing with other houses on the market. You will want to put your best foot forward when you present your home to others. Getting the home ready to be sold can require minor or cosmetic work like painting and de-cluttering or performing a major upgrade.
If you plan on moving out before you sell your home, you will want to continue to pay for water and electricity. When you have prospective buyers entering your home, you will want it to be warm and inviting. A home without air conditioning, heat or light may be difficult to show to buyers.
4. Mortgage payoff
The proceeds from your home sale will be used to pay off your mortgage but it's likely the amount on your statement will be less than what you actually owe. Talk with your lender about any prorated interest and prepayment penalties.
5. Closing Costs
Closing costs are another type of cost of selling your home in Jesup, Ga. Closing costs are solely for the buyer. Some of the closing costs my include homeowners association fees, property taxes, attorney fees, transfer taxes and title insurance. You also may be asked to pay an escrow fee, a brokerage fee, and a courier fee. Another part of the closing costs would be the title policy, which ensures that the title is free and clear.
6. Capital Gains Tax
When you sell your house at a profit, that counts as capital gain. You may need to report your capital gains on your federal tax return.
Many homeowners are eligible to exclude up to $250,000 of profit ($500,000 for married couples filing jointly) from their main home from tax, as long as they haven't used the tax break on another home sale within the past two years. This will apply if it was your primary residence for at least two of the previous five years.
7. Property Taxes
One of the last costs of selling your home in Jesup Ga is property taxes. Property taxes are usually paid in advance and are dependent on if it will be escrowed in the mortgage. You, as the seller, will pay the prorated share of property tax up until the closing date.