Even though it’s a seller’s market in Pinellas County, Florida, real estate professionals warn sellers often miscalculated their costs. A recent article by time.com provides buyer, seller and investor tips for preparing for surprising costs associated with real estate transactions. The article reports the average seller often spends as much as $15,000 or more to sell even as prices increase and homes sell at a rapid pace. A Zillow study showed costs of selling range from $10,000 to $55,000. Selling costs include closing as well as home prep, which average $2,650.

Preparing your home to list

For the most part, there are only a few mandatory costs associated with prepping your home to list. Expect to spend money on cleaning and obvious cosmetic repairs and improvements such as touch-up paint. Other improvements are up to the seller in the hot Florida real estate market. If you want to hire a professional to add a tile backsplash to your kitchen and hang coordinating pendant lights, it will cost more out of your home prep budget. Sometimes, it’s mandatory to make repairs found by the inspector. In other cases, you can sell the home ‘as is.’ If you take a DIY approach, it could cost less money but you run the risk of failing the inspection or delaying the closing. Hiring a professional stager helps you sell quickly, but is also pricey.

Putting aside money for the closing

The cost associated with a home closing include real estate agent commission, which typically commands 6 percent of the selling price. Other closing costs include legal fees, home appraisal fees, title costs and notary fees. Even though it seems expensive, the closing costs come out of the sale of the home. Most Florida homeowners are no longer underwater on their mortgages. If you sell a PinellasCounty home for $250,000 and you have a mortgage of $100,000, your profit is still $150,000 minus the closing costs.

At International Title Partners, LLC, we understand Pinellas County home buyers and sellers want to save as much money as they can. We offer options with our title insurance policies that are typically paid by the seller. For more buyer, seller and investor tips for budgeting and help with a real estate closing, please contact us.