So you decided to go the FSBO route and try to sell your house on your own, after getting into things a little, you realized there are some costs involved. So as a smart seller you are now asking: “What should I budget for if I sell my house on my own in Kansas City, Kansas ?”
The answer may surprise you.
It’s no surprise that home prices in Kansas City have appreciated over the years, and it may also be true that your home has appreciated considerably. But before you start counting the profits, make sure to take into account these costs of selling your Kansas City, Kansas house.
What Should I Budget for if I Sell My House on My Own in Kansas City, Kansas
- Commission Fees
- Staging and Photography
- Capital Gains Tax
Let’s look at commission fees first. One of the first things sellers that want to sell a house on their own think is that if they sell FSBO, they won’t have to pay any commissions. While that’s true for one side (the sellers) you will still end up having to pay the buyer’s agents fees.
Most prospective buyers are looking for house that’s move-in ready. They aren’t interested in a house that has issues. Unfortunately most houses have some sort of problem. Usually sellers have to do some repairs before they can put their house on the market, and if they haven’t been up to date on the maintenance some of these costs can be fairly large. A new roof, for example, can set you back by as much as $20,000.
Curb appeal is of utmost importance: it’s what gets potential buyers to stop and then come in the door. And landscaping is the number-one improvement that most enhances curb appeal. The cost of a thorough, full-blown landscaping job performed by a professional landscaping service runs, on average, just a little over $3,000.
Staging and Photography
Many people – when asking, “What should I budget for if I sell my house on my own in Kansas City, Kansas?” – often forget to think about this expense. But as any experienced agent will tell you, if you don’t want your house to sit on the market for a long time, you probably should spend the money and get staging and professional photography.
Staging involves setting up and arranging your home so that it appears as appealing and inviting as possible. And then to display the staging in online listings, which is where a large percentage of buyers begin their search, you will likely need some professional photos, ranging in cost from $500 to $1,000.
If you plan to move out of your current house into a new home, you can’t just shut the utilities off in the home you vacate and intend to sell. Buyers absolutely do not want to walk through a cold (or sweltering) and dark house. (Also keep in mind that if you turn off the electricity and air conditioning during the summer, you run a high risk of developing a mold problem.) So, at the least, you will need to keep the electricity on and probably the gas as well in the wintertime. If the house is one you’ve been living in, then you already know what it will cost you to keep the utilities on.
Capital Gains Taxes
And then there are capital gains taxes. If your house has appreciated quite a bit, you may have to pay this tax (which is based on the difference between purchase and sale prices, minus the cost of documented improvements). There are, however, some pretty generous exemptions, but just bear in mind that Uncle Sam may take a cut.
So if you’re wondering, “What should I budget for if I sell my house on my own in Kansas City, Kansas?” you now know the answer is . . . quite a lot, actually.