Most homeowners selling a home in Maine look at the listing price and possibilities of profit without looking at the often-hidden costs associated with selling a home. Understanding these costs ahead of time can allow you better to prepare your budget and avoid unwelcome surprises.
1. Closing Costs
Among the most important hidden costs faced by sellers is closing costs, which in Maine include attorney’s fees, title insurance, and escrow fees. Sellers sometimes negotiate to assume a portion of the buyer’s closing costs, as well.
2. Agent Commissions
Real estate agent commissions can range from 5-6% of the final sale price. In some cases, the commission may be split among the two real estate agents at a renegotiated percentage. But this fee may still be considerably a chunk of your proceeds.
3. Home Repairs and Improvements
Before listing your home, you may need to make repairs or upgrades to attract buyers and meet inspection requirements. These can range from minor cosmetic fixes to major structural repairs, depending on your home’s condition.
4. Staging and Photography
Often, professional staging and high-quality photography are suggested to make a house more appealing. These services will make the house sell quicker and at a better price, but it has an upfront cost.
5. Transfer Taxes
Maine charges a real estate transfer tax, which is usually split between the buyer and seller. Currently, it stands at $2.20 per $500 of the sale price of the property, which adds up fast on higher-priced homes.
6. Utility Bills and Property Taxes
Until the sale is finalized, you’re responsible for ongoing expenses like utility bills, property taxes, and homeowners insurance. These costs can add up, particularly if your home stays on the market longer than anticipated.
7. Moving Costs
Do not forget the cost of relocation to your new dwelling. Whether you hire moving professionals or rent a truck and do it yourself, relocation costs can be a pretty great expense.
Knowing these hidden costs when selling your home in Maine will help you set realistic expectations and budget accordingly. You will be better prepared to navigate the selling process and maximize your profits by factoring these expenses into your plans from the beginning.