Many homeowners who are selling a residential property are often concerned about the price that their house will eventually sell for. A mistake commonly made by many is that they do not calculate the costs of selling the house in the asking price of the house so they end up getting less for the house that what they really wanted. There are many expenses related to selling a house which are levied on both the buyer and the seller. Generally, both the seller and the buyer do not take these costs into consideration and in the end are surprised by them.
In most cases, you will only truly find out the real cost of selling your house during the selling process itself. However, this does not mean that you cannot figure out and calculate most of these costs in advance. The real cost cannot be calculated exactly beforehand; however, with an ample amount of research, you should be able to get a general idea on the different costs involved with selling a house and can use that information to incorporate a certain amount to cover these costs in the asking price of the property.
Various costs which add up to selling expenses
There are various costs which add up to the cost of selling your house. The list of these costs is long but some of them are specifically involved in selling of residential houses. Let’s check them out!
The following costs are concerned with selling:
• Capital Gains Tax
• Conveyancing Costs
• Other fees and taxes
Capital Gains Tax
Capital Gains Tax or CGT is imposed on owners (seller) of the property. It is a tax which needs to be paid on the gain which the person is making from the sales. Property’s value is something which appreciates over time. As the value increases, the liability of your for paying CGT also increases if you are going to sell your house. However, there are certain exemptions from this tax to some people and the policies of your local government play a big role assuming whether you are liable to pay this tax and if yes, then how much. So you need to figure out if will you be liable for capital gains tax and if yes, then the same has to be filed.
Conveyancing is a process which is carried out by a solicitor for transfer of ownership or title from one person to the other. In case of sale of a house, the title is with the existing owner i.e the seller. On sale, the title has to be transferred to the buyer or the purchaser. Conveyancing is the legal process which includes all legal formalities that are essential to be carried out when it comes to transfer of title. It includes fees to be paid at various levels, documentation to be done and other things. The solicitor is a licensed professional who is involved into conveyancing as a profession. He is the one who will guide you, do the documentation for you and carry out all the formalities for you. For rendering these services, the solicitor is going to charge a fee for the same. The average conveyancing costs can vary hugely and depends on a number of factors. You can get in touch with a number of providers and get a quotation from them.
Other things which you must keep in mind!
While selling your house, there are some other things related to costs which you must keep in mind. One of them is the costs of buying! Cost of buying is the cost which is being paid by the person who is buying the house from you. Just like you, many types of costs are imposed on him too. So, do not forget about the costs of buying when giving a quotation to your buyer. This will really affect the sale and the interest of buyer in your property which will further add to your selling cost and will also delay the sale.
It is only when you will step in to the real estate market, that you will become aware of what really goes on in it. The people who are already engaged in it are aware of its many secrets. For example, you will need to watch out for dirty tricks and various different ways which are advised and followed by estate agents in saving or lowering down your cost of selling and other costs which are related to sale. You will also learn here how to sell quickly without fees, if possible. Remember, it is always a good idea to incorporate the costs of selling your house as much as possible in your asking price.