WHAT IS THE STANDARD MOVING COST?
You concluded remodeling is expensive upon considering all important factors. So you decided to move to another house instead. But, is moving less expensive than renovating?
If a homeowner wants to live in another home, he needs to sell his old property and pay the real estate agent’s commission. The commission is usually 6%, where 3% of it goes to the seller’s agent and the other 3% to the buyer’s agent. For instance, if your house is sold at $300,000, the agent’s commission is $30,000. You may pay less if you find a good discount agent.
Another possible cost of selling a house is capital gains tax, if your home’s value has appreciated considerably since its purchase. On the first $250,000 of capital gains, single taxpayers do not owe anything from selling their property. But the number doubles to $500,000 for married couples filing jointly. Yet, some sellers might still find themselves with a tax bill.
Now, what are the other costs related to moving?
The cost can be as little as your own time if you have few items and can move it yourself with your own car. Renting a truck for a do-it-yourself move cost around $15 to $40 a day on an average, plus mileage. You can also rent a moving pod, place your things inside, and have it moved to your new property. Costs differ on the distance of the move and the size of the pod.
You can also hire full service movers to take care of moving your items, amounting to $6,000 for a four-bedroom house based on estimates. Or, if you cannot move directly from your old house to your new home for whatever reason, you may need to pay to move twice and rent a temporary place to live for a month or two.
Let’s presume the contract price is $400,000, but the appraisal is only $200,000. Hence, the selling price should be $200,000 or lower for the buyer to obtain a mortgage and seal the deal.
If you need to fix a portion of your house or the prospective buyer does not like your design choices, you may have to either pay for remedy these problems or give a discount to the buyer at closing to work on it.
Seller-paid Closing Costs
Several buyers will ask the seller to pay part or all of their closing costs. You can say no; however, some buyers won’t be able to close the deal without that assistance. On the other hand, if you are selling your house and buying another, you will need to pay closing costs when purchasing a new property. The fees for securing a new mortgage will amount to thousands of dollars. Expect to pay between 2% and 5% of the purchase price in closing costs.
Staging (or home staging) refers to making a house for sale more appealing by emphasizing its best features. It may help you sell your property swiftly and generate more money. But by doing so, you also need to pay the professional fee, which normally amounts from $200 to $5,000, as well as other related costs.
Do I Need to Move Out or Renovate My House?
Inflation and Investments
Buying a Home: Writing an Offer
Macroeconomics: A Brief History
How Much Does a Home Remodeling Cost?
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