You would think that selling a house means you are bound to walk away with a huge profit. But what if you are selling so you can buy a new home, are facing foreclosure, or are going through a divorce? What if your home is in a complete state of disrepair?
You might barely break even. You could even lose money.
This article breaks down the usual costs of selling a home in Idaho and how you can avoid some of these costs.
Additionally, you will learn about the following:
- House repair costs
- Real estate commission
- Home selling lawyer fees
- Home inspection costs
- Closing costs
- Home selling capital gains taxes
- Property taxes
Typical Costs When Selling a Home in Idaho
According to Zillow, the average home in Idaho sells for about $298,257. The Zillow average home sale price is referred to as the Zillow Home or Zillow Home Price for the rest of this section, for simplicity.
The costs discussed in this section are recorded in percentages as well as dollar figures. You should think of these percentages in relation to the aforementioned Zillow Home Price.
While these costs may sound like a lot, remember that they are to help you get your home sold as efficiently as possible. And of course, there are taxes and fees involved at times.
With the Zillow Home example, your total expenses would fall between $29,826 and $50,704; about 10 to 17 percent of the total sale price.
Below you will find this cost broken down into sections based on what is typical for a home sale in Idaho. Please note that these costs fluctuate, which is why there are large ranges included to give you the best idea in any housing market.
House Repair Costs
Home repair average costs can vary greatly depending on the current state of your home. If your home is in relatively good or passable condition, you can expect to pay between 2 and 3 percent of your final home sale price.
Using the Zillow Home Price example, this calculates to a range of $5,965 and $8,948.
So, what are the best house repair costs to focus on for the best results?
Refreshing the things you can see from the farthest away is a good rule of thumb. For example, your potential buyer can see your landscaping from down the street as they pull up to your property. Cutting the grass and adding a fresh layer of mulch to your flower beds will make a great first impression.
You might want (or need) to repaint the walls or deep clean your carpets. These are great to put at the top of your list because they impact the entire feel of your home.
Finally, you should think about anything in your home that needs to be repaired. Think about things that have been bothering you while you live there! Fixing small imperfections will allow your house to put its best foot forward.
If your home is beyond these simple fixes and in a total state of disarray, you might think about an as-is sale of your home. The benefits of an as-is sale are discussed in the Avoid Some of These Costs section below.
As an aside, you might also decide to have open house showings. Open houses can help drive many potential buyers to your house at once, but there are a couple of costs associated with this. These are low costs, but worth mentioning. You will likely want to serve refreshments, and there is the cost of your time as well.
Real Estate Commission
Your realtor has to make a living too, and you can expect to pay them between 5 and 6 percent of your home’s final sale price in Idaho. This comes out to between $14,913 and $17,895 with the Zillow Home example.
Real estate agents can be costly but beneficial. You might want to check their sales history to make sure you hire someone that will get you the most bang for your buck.
Home Selling Lawyer Fees
A closing lawyer is optional in Idaho. If you choose to use one, they will represent you and draw up your closing documents. You can expect to pay between $600 and $1,000 for a home closing lawyer in Idaho.
Utilities and moving costs are important to consider if you are moving. This section also discusses various other costs associated with moving that you may have forgotten.
If you decide to move into your new place of residence before closing on your home sale, you will end up paying utilities for two places at the same time.
If you have yet to find a new place to live, you might have to invest in a storage unit and stay in a hotel.
No matter what, there are some costs associated with the moving portion of your home sale.
And don’t forget to factor in the cost of hiring movers, renting a U-haul yourself, or bribing your friends and family with pizza and beer! Jokes aside, the average price for moving costs like these is between $5,000 and $9,000 for the Zillow Home example in Idaho. The lower end of the spectrum is for moving locally, while the higher cost is for moving long distances.
If you want to sell your condo, you might have to pay some Homeowners Association (HOA) fees. If you haven’t paid off your mortgage, you will have to do that with your profits as well.
Home Inspection Costs
A savvy home shopper will have a home inspected before purchasing. This inspection will sometimes reveal extra repairs that you may be expected to fix before they will buy. Expect to shell out about 1 percent of your home’s total sale price on these repairs.
So, who pays the closing cost? Closing costs average between 1 and 3 percent of your home’s total sale price and are paid by the seller and the buyer. This usually amounts to between $2983 and $8948 of the Zillow Home Price, and the amount of which each party owes is determined upon closure.
Home Selling Capital Gains Taxes
Capital gains taxes – in the simplest terms – are the taxes you have to pay on the profit you make from selling your home. That sounds like just another way for the government to take your money, right?
Well, guess what:
Idaho doesn’t have capital gains taxes on home sales!
You don’t have to pay property taxes until one year after closing. They are based on the assessment of your property.
Can You Avoid Some of These Costs?
Absolutely. Find out how to avoid some of the costs associated with selling your home in Idaho below.
How to Avoid Racking Up Costs When Selling a Home
Below you will find a few ideas on ways to cut costs when selling your home.
An as-is sale is just like it sounds; you will be selling your home exactly as it is, with no premade repairs or cleaning. This decision can help people who have homes that are beyond help, sometimes known as tear-downs. You might also consider this option if you are going through a divorce, avoiding foreclosure, or are struggling to pay your mortgage.
You could try to negotiate with your real estate agent for a better price. Strong negotiation should be a last resort because a more experienced real estate agent will get you the best home sale price possible.
Your real estate agent doesn’t get paid until your Idaho home sale is complete. So you don’t have to worry about paying them until the very end of the process, and you will be using the money made from your home sale to do so.
You can completely forego a closing lawyer in Idaho if you wish! Some states require it, but Idaho is not one of them.
Is your head spinning with numbers and percentages? Rest assured, there is always someone who can help you.
If you choose the more expensive route, a trained and reputable realtor can explain all of the above in further detail while helping you sell your home. They will help you figure out what you should repair and clean, and put their marketing skills to use to find you a buyer.
Since real estate agents make a commission, they have an incentive to get your home sold for the highest price possible. But remember, that also means they won’t want you to spare any expense when it comes to beautifying your home in preparation for its sale.
If you are overwhelmed and just want the whole process to be over as fast and hassle-free as possible, companies that buy houses in Idaho for cash is your best bet. We buy houses in Nampa, Idaho and the surrounding areas in any condition and will give you an offer in 24 hours, and even close on your home within 7 days if that’s what you’re after!