Selling your house in Atlanta can be an exciting and sometimes stressful experience, especially if you are doing it for the first time. As you start to sell your house in Atlanta, it is essential to be aware of the costs involved in the process. Selling a house requires a significant investment of time, effort, and money, and it’s essential to understand the expenses you may incur. Here are five costs to expect when selling your house in Atlanta:
1. Real Estate Agent Fees
One of the most significant expenses involved in selling your house in Atlanta is the real estate agent’s fee. Real estate agents usually charge a commission of around 5-6% of the sale price of the house. This fee covers the agent’s services, including listing the property, marketing it to potential buyers, negotiating the sale, and handling all the paperwork involved in the process. This 5-6% also covers the percentage of the buyer’s agent’s commission. And while it may seem like a significant expense, hiring a reputable real estate agent is essential for selling your house quickly and at the best possible price. If you were to sell your home and it took you 30 hours of your own time to research your home’s value, market the home properly, procure a buyer, handle all paperwork and communicate between all parties and vendors, you’d understand the amount of time and energy goes into selling a home. So, paying for a professional to do so shouldn’t be so daunting. A good agent will take all those stresses and unfamiliarities off your plate for you.
2. Home Repairs and Improvements Before Listing
Before putting your house on the market, you may need to make some repairs and improvements to make it more attractive to potential buyers. These repairs can include fixing leaky faucets, repairing damaged walls, and replacing broken fixtures. Home improvements, such as updating the kitchen or bathroom, can also increase the value of your property and make it more appealing to buyers. However, these repairs and improvements can be costly, and you should consider the return on investment before making any significant upgrades. When speaking to an experienced agent like Chris Hassler and ATL Real Estate Services, you’ll get options of what would work best given your particular situation. Maybe it doesn’t make sense to perform all these repairs because your home is in below average condition and should be sold as such. Contact us at 404-439-9984 and ask to speak with Chris on what options your home might have.
3. Staging and Cleaning
Staging your home is an essential part of the selling process. It involves decluttering and rearranging furniture to make your house look more appealing to potential buyers. Staging can help buyers visualize themselves living in the space, which can increase the chances of a sale. You may need to hire a professional stager to help you with this process, which can cost around $2,000-$3,000. Additionally, you may need to hire a professional cleaning service to ensure your home is spotless before each property showing. At ATL Real Estate Services, we cover the cost of photography so you don’t have to come out of pocket for it. We do typically ask for you to clean the home. In some cases, it can be done with a little elbow grease. In other situations though, it might call for a professional clean to come in and help out. Contact us and we can see what makes most sense for you and your family.
4. Closing Costs
Closing costs are fees associated with the transfer of ownership of the property. These costs can include attorney fees, title search fees, appraisal fees, and transfer taxes. In Atlanta, closing costs for the seller are typically around 1% or less of the sale price of the home in most situations. For a buyer, closing costs can push 3%. Regardless, it is essential to budget for these costs, as they can add up quickly, so be sure to factor these costs into your budget.
5. Capital Gains Tax
If you have owned your home for less than two years out of the last five years or have owned it for more than 2 out of the last 5 but stand to profit over $250,000, you may be subject to capital gains tax on the sale of your property. Capital gains tax is a tax on the profit made from the sale of an asset, such as a house. In Atlanta, the capital gains tax rate is 15-20% of the profit from the sale. Naturally, Uncle Sam wants his cut but he has made it tolerable for the average homeowner looking to sell their primary residence. It is essential to consult with a tax professional to understand your tax liabilities before selling your home. You don’t want to start spending all your profits on a new home or boat, just to get hit with a big tax bill at the end of the year.
Selling your house in Atlanta can be a complex and expensive process. It is essential to be aware of the costs involved in the process to avoid any surprises. Real estate agent fees, home repairs and improvements, staging and cleaning, closing costs, and capital gains tax are all expenses that you should expect when selling your house in Atlanta. By understanding these costs, you can prepare financially and make informed decisions throughout the selling process. If you’re interested in selling your house in Atlanta, reach out to ATL Real Estate Services today to find out how we can help! 404-439-9984
