There are several costs you need to consider when selling your home.
Closing costs can include a multitude of items, some mandatory, some up to the sellers discretion. Here is a breakdown of costs to consider when selling in Massachusetts:
$100-$200 to have a prepare a deed
$4.56 per $1000 of your sales price for state tax stamps
$100 to track and discharge your mortgage
$125 to record the discharged mortgage and
$76 for a 6D certificate for condo owners, showing there are no outstanding fees owed by the condo owner to the condominium association.
Other costs to consider are the brokerage fees, taxes or liens owed on the property, any inspection items that may be agreed to during the inspection period and attorney fees.
In order to transfer the property you will also need to update (purchase & install) smoke & carbon monoxide detectors and schedule a smoke and carbon monxide inspections to obtain a smoke & carbon monoxide certificate, insuring your property is properly protected. If you have a septic system you will also need a to schedule a Title V inspection to show the septic has passed the inspection.
There are other expenses you may want to consider to prepare your property for marketing, these include removing old wall paper, painting, regrouting, recaulking, staging, repairing neglected maintenance issues, temporary storage to help declutter the house, thorough cleaning, sprucing up the outside and boosting the curb appeal.
Often Sellers underestimate the importance of preparing their property for sale. It is crucial step and can make a world of difference in attracting buyers The outside must entice the buyers to come inside and take a further look. Once inside, everything should look its best, you only get one chance to make a first impression and it must be the best it can be.
Once you determine a marketable sales price for your home, you then need to minus the closing costs and you will end up with your net proceeds amount. This is the number that matters. This number is what you will use to determine whether selling your home is financially doable for you at this time. But be careful with this assumption. Many sellers have a number in mind that they ‘have’ to sell at, but in reality, it can often cost more then they realize to hold on to the property- (insuring, paying taxes, paying the mortgage, maintaining, heating, removing snow, landscaping etc.) and sometimes it is more cost effective to sell the property for a lower price, sooner, rather than trying to hold out for a better price, months or years down the road, while continuing to pay the property costs.
If you are considering selling your home, please contact me today. I will go over these expenses with you in detail and help you find the most cost effective way to prepare your home for sale.