8 Unexpected Expenses When Selling a Home and How to Prepare
Selling a home can be a rollercoaster of unexpected expenses, and it's crucial to be prepared. Real estate investors and chief financial officers weigh in on the often-overlooked costs that can catch homeowners off guard. From preparing for buyer's inspection costs to tackling cosmetic repairs early, this article covers eight essential insights. Discover expert advice on how to mitigate these costs and ensure a smoother selling process.
- Prepare for Buyer's Inspection Costs
- Do a Pre-Listing Inspection
- Budget for Inspection-Related Repairs
- Address Zoning and Permit Issues
- Evaluate and Repair Siding Early
- Assess Window Condition Early
- Plan for Conveyancing Fees
- Tackle Cosmetic Repairs Early
Prepare for Buyer's Inspection Costs
Good morning,
My name is Mark Severino. I am a real estate investor in Dallas, TX. My company is Best Texas House Buyers, LLC.
The one unexpected expense that I have encountered for every property that I have sold is the buyer's inspection. After a home buyer and seller come to an agreement on the purchase price of a property and a contract is signed, the buyer will hire a home inspector. These professionals essentially create a "fix-it" list that shows the general condition of the property and the outstanding items that are in disrepair. The inspectors review the structure and main systems of the house, such as HVAC, plumbing, and electrical. They are familiar with safety and code violations as well.
The options the property seller has once deficiencies have been identified are:
1. Fix the problem. The cost is out of the seller's pocket immediately.
2. Credit the buyer an amount of money that is agreed upon on top of the sale. Typically, whatever the general cost of the repair. This is fast and easy because there is no waiting for repair time.
3. State that the property is to be purchased as-is and have the buyer sign off stating they are aware of the problems and choose to go on with the sale anyway.
All options are negotiable. To prepare for the cost, the homeowner should set aside money ahead of time knowing some things may need to be repaired. They can also build that cost into their asking price and write a comprehensive explanation on their disclosure form when listing the property.
I hope that helps!
If you use my quote, please link to my site:
https://www.besttexashousebuyers.com/
Thanks!
v/r,
Mark
Do a Pre-Listing Inspection
One unexpected cost I faced when selling a place was what it would cost to make repairs and updates after the home inspector left. And though a house could look good to go on the market, inspection can expose other problematic concerns that need addressing right away. In my case, I had some minor roof repairs to do, and the wiring was also outdated, as pointed out in the inspection. Depending on how extensive the work is, these last-minute costs can range from thousands.
To avoid this happening, I would suggest that homeowners do a pre-listing inspection. This enables you to detect and remedy trouble spots at your pace and on your dollar instead of rushing to actually fix stuff under buyer's pressure. Another approach is to reserve some money for future repairs, which should be a contingency fund that covers 1-2% of the value of the home (preferably). Any unused portion of the fund is a bonus to you at closing. Even small updates like fresh paint, sealing windows, or checking appliances can also save you a lot of money.
Budget for Inspection-Related Repairs
One unexpected expense that homeowners should be prepared for when selling their home is the cost of repairs or upgrades that arise during the inspection process. Often, buyers will request fixes or improvements based on the findings of their home inspection, and these can be more costly than anticipated.
To mitigate this, I recommend being proactive and getting a pre-inspection done before listing your home. This way, you can identify and address any issues early on, avoiding surprises later. Additionally, consider budgeting for minor repairs or touch-ups that could help your home sell faster and for a better price. Being prepared for these costs ahead of time can prevent them from derailing your sale.
Address Zoning and Permit Issues
When selling your home, one unexpected expense many homeowners encounter is related to zoning and permitting issues. Having spent over a decade navigating the intricacies of zoning in both the Pacific NW and Arizona with R-G Construction, I've seen how overlooked zoning problems can lead to costly delays. In one case, a client found a local zoning issue that required a variance, delaying the sale and adding significant costs.
To mitigate such costs, I recommend partnering with a seasoned contractor early in your selling process to preemptively address zoning and permit issues. Contractors familiar with local ordinances, like those at R-G ProBuilders, can help resolve these challenges quickly, avoiding unnecessary expenses or sale disruptions. Taking this proactive step can ensure a smoother, cost-effective selling process.
Evaluate and Repair Siding Early
One unexpected expense when selling a home is repairing or replacing outdated siding. From my time running Herts Roofing & Construction, I've seen many homeowners overlook the importance of siding, but its condition can dramatically affect your home's curb appeal and value. A few years ago, we handled a project where the worn-out siding nearly turned buyers away until they invested in repairs, increasing the sale price significantly.
To prepare for this, I recommend evaluating the condition of your siding ahead of time. Simple repairs can improve your home's appearance and even lead to a quicker sale at a higher price. Opt for durable and low-maintenance materials like vinyl siding, as this can add lasting value without major expense.
Also, consulting with professionals rather than opting for DIY ensures the work is done to current standards, attracting more buyers and potentially boosting your home's final selling price.
Assess Window Condition Early
One unexpected expense I encountered when selling my home was related to window replacements. Many homeowners overlook the importance of updated windows when preparing a home for sale. In one instance, old windows accounted for higher energy costs, impacting the buyer's interest. I had to replace several windows with energy-efficient ones, which became a significant expense.
Seeing this as a learning opportunity, I recommend assessing your windows' condition early. Modern energy-efficient windows can boost your home's appeal and even add value. Consider options like double- or triple-pane windows for better insulation. Preparing this in advance can offset potential resistant buyers and streamline the selling process.
Having grown Vista Glass into a leading provider in our area, I saw how investing in quality window solutions paid off in the long run. Clients benefited from better noise reduction and energy efficiency, which are major selling points for potential buyers. Being proactive about such home upgrades can improve marketability and prevent sales from stalling due to unexpected buyer concerns.
Plan for Conveyancing Fees
When I sold my home, I was surprised by the costs associated with the conveyancing process. While many homeowners focus on estate agent fees, the legal fees, searches, and disbursements can really add up and catch you off-guard. To mitigate this cost, I recommend getting a detailed breakdown of potential conveyancing fees from your solicitor upfront, along with estimates for any searches. It's also wise to budget an extra 10% on top of the quoted fees to cover any unexpected expenses that may arise during the process. Planning ahead can really help keep your finances in check when selling your property.
Tackle Cosmetic Repairs Early
One unexpected expense I encountered when selling a home is dealing with small but noticeable cosmetic repairs. These are often things homeowners live with daily—like peeling paint, small drywall cracks, or outdated fixtures—but they stand out during property viewings. From my time at Paint EZ, I've seen houses benefit greatly from minor touch-ups, leading to a stronger first impression and potentially higher offers.
For example, a client in Boise had peeling exterior paint that we addressed just before listing. This simple refresh made a significant difference, catching potential buyers' eyes and setting their home apart in a competitive market. Always assess and address these minor issues early on.
To prepare, have a professional inspect your home for necessary touch-ups, and tackle these repairs a few months before listing your home. Consider a company like Paint EZ, which handles these small projects efficiently, ensuring your home looks its best without causing a major hit to your wallet.
