We all know that selling your home may cost a little bit of money, either in real estate commissions or marketing costs but there are a few hidden costs to selling your home that you might not be aware of. It's important to know all of the details to selling, marketing and advertising your home that extends beyond simply paying your real estate agent to list and facilitate the deal.
Here are four hidden costs that you should be aware of when selling your home in Mirasol (or any Palm Beach County Community)
#1. Transfer (or Documentary Stamp Tax) taxes.
Just as with anything major that you buy or sell there are taxes involved. Regardless of whether or not you own your home outright, you'll need to pay the government to transfer this property. This is paid to either your state, county, municipality or all three. The amount that you pay will be based on where you live the tax rates typically range from .01% up to 4%. For Florida (except for Miami-Dade County) is only .7% currently, which on a $400,000 house the tax would be $2800. One good thing is that many buyers and sellers actually split this cost.
#2. Capital gains taxes.
If you sell your home for a significant amount of money you'll need to pay this capital gains tax. However, this is avoided up to a certain amount. Singles can avoid this tax up to $250,000 and married filing jointly can avoid paying this tax up to $500,000 in profits from the sale of their home. However, in order to clean the exclusion, the property must have been your primary home and you must have lived in the property for at least two years out of the last five years. Also, if you have claimed another home sale exclusion in the last two years you may not exclude another one but you can deduct closing costs, selling costs and realtors fees to lower your capital gains taxes. If you sell your home for over this amount the capital gains tax for short-term is 6.75% in the long term is 5.43% for Wisconsin.
#3. Staging costs.
This is not always a must but it can bring more profit to the sale of your home and a faster sale. Sprucing up your home and staging ahead of listing can get more buyers in the door and potentially more offers. Of course, you can do some of the work yourself but even spending a little bit of money getting a consultation can put you in the right direction on your own personal home staging. On average, sellers can spend about $1800 to stage a home if they choose a professional. This can add anywhere from a $2000 or more to the sale of your home, so it may be worth a look into.
#4. Certificate of occupancy.
In some counties and states, the seller must obtain a certificate of occupancy, stating that the property is safe and suitable for living. This certificate is required whenever there is a change in the occupancy of a home, condominium or apartment. Each county and city is different so be sure to check with individual rules and requirements with where you live. Often times this certificate of occupancy is only required when the home is originally built and not when it is purchased or sold but again, make sure that you are up to code before transferring ownership.
Related Post: How Agents Price and Sell Your Home - External
Each community and neighborhood in Palm Beach County is different so please contact my office today. I'd be happy to answer any questions you might have or do some research on what your home is currently worth and how quickly it would sell in today's market.
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