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If you’re selling your home, make sure you budget for these costs.

The most obvious draw of selling your house is to make money. In fact, it might be the most money you’ve ever made in a single moment. But that doesn’t mean home selling is a profit-only venture. There are a few costs for which you need to budget if you plan on selling your home. Here’s a quick overview.

• Home preparation costs. Your home needs to look its best to sell for top dollar, and that isn’t free. Budget to fix it up and stage it.  This could include new paint, new flooring, and more!  Don’t forget to install smoke detectors and carbon monoxide detectors.  Do all light bulbs work?  Does the home need a deep clean?  Have you washed the windows lately?  Is there any termite damage?
• Vacant house expenses. If you plan to move into your new home and leave it vacant while it sells, be prepared to pay for utilities at both properties. Buyers will want to see your home with the lights on, and will probably test the faucets, keep that water on! You’ll also need to maintain vacant home insurance to protect your empty house.
• Real estate agent commission. In San Diego, the seller usually pays for the real estate agent’s services, so calculate the agents’ commission and include it in your home selling budget.  This includes the listing agent and the selling agent commission.
• Closing costs. There are costs associated with closing (i.e. finalizing) your housing deal, including escrow fees, title transfer, disclosure reports, HOA transfer, home warranty, termite report, etc. You and your buyer will negotiate who pays what, but be prepared to put some money towards closing.
• Moving costs. Moving can be pretty affordable if you take a DIY approach, but if you plan to hire professional movers – or even just rent a moving truck – make sure you budget for the cost.
• Capital gains tax. If you’re single and sold for less than $250,000 or married and sold for under $500,000, you can avoid the capital gains tax. Otherwise, talk to your tax advisor to figure out if you’ll owe something at tax time.  Remember, you can offset taxes with capital improvements, so make sure you find the receipts for the improvements that qualify!

Of course, the cost of selling will depend on your unique home and your specific market. To work with a real estate agent who can give you a much clearer idea of what to expect when selling, contact Jenn Blake Real Estate Group at Pacific Sotheby’s International Realty in San Diego, California at 858-663-6788.