If you are thinking about listing your house in Long Island, make sure you are prepared for these hidden and often unexpected costs! Keep reading to learn what to watch out for and ways to save your hard-earned money!
Selling a house in Long Island can get expensive quickly when you hire a local agent and list the house on MLSLI. A smart seller will consider thee costs before spending a dime to really evaluate if the expenses are worth it. In some cases, selling your Long Island house to a direct cash buyer can be the better choice. Give CoMax Properties a call today to find out if listing or a direct sale will be the best choice for your situation.
If you do opt to list your Long Island house, watch out for the costs listed below!
People know closing costs are out there, but they aren’t always sure what to expect. In fact, the numbers vary from house to house. Closing costs will include things like origination charges, transfer costs, inspection fees and more. Most homeowners will pay anywhere from 2-5% of their final sale price in closing costs. If your house is $200,000, you will need to pay anywhere between $4,000 and $10,000.
Real Estate Agent commissions will typically cost you around 4-5% of the final sale price of the house. However, many agents will have administrative expenses that they will tack on top of that. This includes things like copies, printed materials, sandwiches for an open house, listing services, etc. Some agents take care of it all, while others will charge you for everything under the sun. If you decide to list, be sure to review the agreement before you sign and make sure it is very clear what rate you are paying (negotiable) and the length of the contract. You could find yourself spending far more than expected.
Staging & Curb Appeal
Getting a house ready for photos, showings and open houses can get expensive quickly. All of you personal belongings and clutter should be put away in order to achieve the greatest effect. In this case, it doesn’t mean stashing everything in the closet… people are going to look there. Some homeowners will find themselves paying for a storage space while their house is listed, whicj can be money well spent, keeping only their necessities at the house with them. This makes for easy clean-up and an easier move when the time comes.
You’ll need to make sure the yard is in tip-top shape and looks amazing to anyone passing by. It can take some work and some out of pocket cash to get things where they need to be. Not to mention the continuous upkeep while your house is listed. Curb appeal is a huge influencer for people getting ready to buy. Don’t miss out on a potential buyer because your yard looks messy.
Painting is one of the first things many homeowners will do before listing their house. It is a relatively simple upgrade, that can have a big impact on the appearance of the house. Most people will opt to hire a professional to handle it as painting the whole house can be quite an undertaking. Others will choose only to do certain rooms to be mindful of costs. Repainting your entire house can ultimately set you back thousands. the first repair you will be told to make. It sounds easy enough, but after you consider the costs of repainting the entire home, you could be looking at a few thousand dollars. Neutral colors and off whites are good choices here. Off whites tend to make rooms look larger, while darker colors make a room look smaller. Funky paint choices that already exist should be top priority if you are going to touch up a few rooms.
Sure, you can do a pretty good job cleaning your house. But do you really want to scrub the walls, baseboards, and the dreaded oven? Many people hire professional cleaners, who will specialize in ‘move-out” cleanings. They will take care of everything from top to bottom so you can spend your time elsewhere. If you are not replacing the carpets, it is absolutely a good idea to pay to have them professionally cleaned. There are always specials being run by carpet cleaning companies with volume discounts, so you can shop around.
Some lenders can charge you if you are paying the mortgage off early. Although this used to be very common back in the day, it is less so now. You should check with your lender for to see if your mortgage has a pre-payment penalty and other costs you will incur when paying off the mortgage. You will likely have to pay recording fees, which can vary by jurisdiction. Of course here in Nassau and Suffolk County we pay some of the highest fees in the country.
Title & Escrow Fees
When listing your house in Long Island, you will also need to consider the cost of title insurance as well as a fee to the person holding escrow. This is typically a fee paid to the attorney who distributes funds to each party at closing.