You’d think that selling your home would mean lots of profit, without any expense beyond time and effort, wouldn’t you? Well, not quite. You can usually expect to pay at least a few basic fees when selling. Here’s what you can expect.

Closing Costs

Closing costs are basically the fees that are going to be inherent in the transaction of selling. They are going to vary pretty widely depending on where you are, your circumstances, the property itself, what is outlined in the contract, etc. This may include (but would not be limited to) appraisal fees, application fees, fees paid to the HOA, fees for the insurance companies related to the property, inspector’s fees, survey fees, tax-related fees, and more. While it’s not probable that the comprehensive list of possible closing costs would all apply to you, it usually runs people at least a few thousand dollars. Make sure you understand where your costs will come from before you complete the transaction.

Commissions

The age-old debate in the world of real estate begs the question: is it worth the cost to hire a real estate agent? Actually, it’s not much of a debate. You probably will want to hire one, unless you have somebody waiting nearby to pay in cash and bypass a lot of the red tape and legal obstacles. Real estate agents bring with them quite a bit of knowledge, experience, and familiarity with your local market that will be very helpful for finding a buyer. Luckily, they may or may not require fees before the sale. What they will require is a commission percentage of the sale money upon completion. Normally, real estate agents take a 6% commission of the sale price. Keep that in mind.

Repair Costs

When selling your home, even if it’s in absolutely pristine condition, you’re going to need to spend at least a bit on preparing it aesthetically for sale. At its most invasive, that means big renovations that could raise the value of the house – maybe with the roof, the door, the plumbing system, etc. On the other hand, you also might end up spending a little bit extra on doing light interior remodeling that makes the space a little more modern and broadly appealing. Even just hiring a cleaning crew will be a worthy investment.

The beginning steps of selling a home can be frustrating because you’re going to be having to cough up hundreds or thousands of dollars at a time without seeing immediate returns. But don’t get discouraged! The eventual payout from the sale of your property, even minus the commissions, will be worth it.

Check out this article on why every homeowner needs an emergency fund !