There are many aspects of selling a home. You should do your research so you can know what to expect. Important aspects of selling a home include closing costs, taxes, and inspections.

Closing Costs

Closing costs are part of the selling process and are important to transferring ownership of the home. These are paid by the buyers and sellers which cover the fees for sale. Sellers can expect to pay closing costs of at least 1% to 3% on the sale price. Closing costs can include things like title search, home inspection, appraisal comma loan payoff fees comma attorney fees, among others. You shouldn't forget the closing costs of your home because these fees will reduce the overall profit you make on the sale.

Taxes

Your home is considered a capital asset which means that it could be subject to a capital gains tax if it makes a profit when you sell. Luckily, for most home buyers there are exemptions. If you are single, the first $250,000 is exempt from capital gains tax, married who file taxes jointly are exempt for the first $500,000. The home you're selling needs to have been your primary residence for at least two years. For inherited properties, the capital gain is stepped up in basis. This means that the base price is the price of the home when you inherited it. If you inherit a home and sell it right away, you will not owe any taxes.

Inspections

An inspection is an important part of buying and selling a home. Before you list, you should hire a professional to come do a pre-listing inspection of your home. During this inspection, you should expect them to find something wrong as even new builds can have issues. Get a detailed report from the inspector and then you can make any needed repairs before you list the home. Buyers may make their offer contingent on a home inspection, so doing the pre-inspection can ensure the sale will go through smoothly.

When you sell a home there could potentially be some profits, but there are also costs associated with the sale of your home. You should be aware of all the aspects of selling your home so that you know roughly how much profit and how much cost it will take. Knowing these aspects can help you have peace of mind through the process.

Check out this article on how to navigate the home-selling process !