A hot real estate market might encourage you to sell your house sooner to maximize the returns on your investment. That said, it also costs money to sell a home. These expenses can take the form of agent and contractor fees and, most importantly, closing costs.
What are closing costs and how much do you need to set aside to cover these? Continue reading to learn more.
CLOSING COSTS
Closing costs, requirements, and commissions depend on where you live. In the La Quinta, CA, real estate market and the rest of California, closing costs are approximately 11% of the total sale price of the house. Many closing costs are the buyer’s responsibility, but sellers tend to pay more. That is because they often shoulder the agent commissions of both parties.
Depending on the purchase agreement, you might also have to cover a few more expenses. We call them “seller concessions.” These may include partial or full payment of the following:
- Transfer taxes
- Title insurance
- Recording fees
- Attorney fees
- Inspection fees
- Loan origination fees
Paying these seller concessions isn’t required— it’s up to you to offer or agree to the buyer’s requests. But it can make your property or counter-offer more attractive, especially to buyers who have a tighter budget. Only offer to cover the costs you can shoulder, however.
As a whole, sellers pay around 1% to 3% of the closing costs because there are fewer fees involved for the seller than the buyer.
OTHER EXPENSES WHEN SELLING A HOME
Apart from closing costs, make sure to budget for the following:
Home repairs
Unless you’re planning to sell your home as-is, set aside a healthy sum to cover necessary repairs and upgrades. Depending on the age and condition of your property, these jobs can range from simple fixes to significant repairs. At the end of the day, making repairs and updates will help boost your property’s value and marketability. Most buyers want move-in ready homes.
Staging
There are lots of beautiful homes for sale in La Quinta, CA, and you will want to stand out. You may want to have your home staged professionally, which can cost anywhere from $2,000 to $3,000. You can always choose to stage the home yourself, but you may have to source furniture and décor on your own.
Moving costs
Moving costs will vary depending on where you’re planning to relocate and if you require heavy lifting. Expect to pay less if you’re moving within Coachella Valley, and more the farther you go.
If you want to save on moving costs, there are several ways to lighten your load. First, you can hold a garage sale for items you no longer want or require. Alternatively, you can donate these items to your favorite charity or local organization. Second, you can start moving early and slowly, leaving major items that require more manpower last. That way, you won’t have to hire a big truck to fit all of your furniture and items.
An optional moving cost are storage fees, should you decide to keep your belongings somewhere for the meantime.
Do you want to learn more about selling your La Quinta, CA property? Reach out to me at 760.567.7822 or send a message here.