How Much Money Do You Make When You Sell Your House?

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If you’re selling your home, you may be wondering how much money you’ll make from the sale. The answer depends on a number of factors, including your financial situation, the type of house you’re selling and the state in which you live.

The real estate commission, a common fee that sellers pay to agents who show their homes to buyers, is typically between 5-6% of the sales price. However, some homeowners opt to sell their houses without paying an agent’s commission. If you do go this route, you’ll need to decide how to spend the proceeds of the home sale before you start the closing process.

Additional costs, such as 2% to 8% in repair expenses and 3% to 6% of the sale price in buyer closing fees can also affect your profit from the sale of your home. If you don’t take these into account, you could lose out on thousands of dollars from the sale.

You’ll also need to consider capital gains taxes, which are taxed when you make a profit from an asset that you sold more than its original purchase price. The IRS says you may be able to exclude some of your gain on the sale of a home if you’re eligible for an exclusion. Also read https://www.mk1investments.com/

The cost basis of your home – the amount you paid for it plus any improvements you’ve made – determines how much you can claim in capital gains taxes when you sell your home. A higher cost basis means a lower chance of paying capital gains taxes on the sale of your home.

Using a realtor, whether you’re selling on your own or with an agent, is often recommended because they have access to the local MLS and can help you market your home effectively. They can also negotiate with potential buyers on your behalf and get you a competitive offer that you’ll be happy to accept.

They can help you with negotiating repairs and making contingencies, too. They can even help you find a low-cost lender to fund your purchase.

If you want to save money on realtor fees, you can also consider working with a home-sale portal like Clever. The platform works with a network of local agents who specialize in the area in which you’re selling your home. When you’re ready to sell, you’ll work with a partner agent who can guide you through the entire process, from pricing your home to finding a funding option and ensuring a smooth closing.

You can also use an iBuyer, which is a type of home-buying company that makes preliminary cash offers on homes. These companies are on a downward spiral, though, and you’ll typically get significantly less for your house than you would with retail buyers.

Aside from the hefty agent commission, you may be surprised at how many other fees you’ll have to pay when you sell your house. For example, you’ll probably have to pay a title search, escrow and transfer tax (in some states). If you’re looking for a low-cost way to sell your home and save money on realtor fees, contact an iBuyer today.