13 Unexpected Costs That Can Really Catch Home Sellers Off Guard

When you decide to sell your home, you may think that all you have to do is list it for the price you want. However, it's not uncommon for homeowners to spend thousands of dollars when selling their homes.

Being aware of these "hidden costs" can help you determine the price of your property and potentially boost your bank account by planning for the most budget-friendly ways to handle these unexpected expenses. 

Here are some of the elusive costs you should know about when putting your house on the market.

Staging your home is a big process. It often involves removing as much clutter and material as possible and setting up the home in the most attractive way possible to encourage buyers to see themselves in that space.

Home staging costs range from $750 to $2,800 if you hire a professional.

You could do the work yourself if you have the appropriate furniture to use to get the best results. Staging takes skill and experience to get just right, though.

Title insurance is a type of protection from claims made against the owner of the home. It's common for the seller to pay the buyer's title insurance cost.

If there are concerns about the home's title, this insurance helps cover the buyer's losses.

The amount owed on your existing mortgage must be paid in full at the time of the sale. Most commonly, the amount received for the sale covers most of those costs.

However, prorated mortgage interest can be a factor. The lender may require you to pay a prepayment penalty if you pay off the mortgage within a specific period after purchasing the home.

Find out from your lender whether there is a prepayment penalty, as this could amount to thousands of dollars.

You may owe property taxes for the time you've lived in your home. In many states, these are paid in arrears, which means after time passes.

If you paid taxes in January for the previous six months but sell your home in March, you may owe property taxes for three months (January through March) of the current year.

In short, you'll pay based on the length of time you've lived in the home.

This could be one you're anticipating, but perhaps the amount is what's shocking. Real estate commissions range from 5% to 6% of the home's sale price.

If your home sells for $300,000, that alone is up to $18,000 you'll pay your agent. There may be opportunities to negotiate this cost down so you can avoid wasting money, but that's hard to do.

You'll need to prep your home as part of the process of selling it. This could include cleaning the carpets, power-washing the driveway, paying for exterior updates, trimming trees, and even a few coats of paint indoors.

Even if you do the work yourself, you still have to consider the cost of materials and supplies to make these upgrades.

The hope here is that any money you put into the home will come back to you in the form of a higher sale price.

The photos you use in your home's listing are one of your most powerful marketing tools. Ensuring they are done well and positively showcasing your home is critical to getting people to see the property in person.

That's why it is typically worth paying a professional fee for this service instead of doing it yourself or using your agent. The costs depend on size and location but can range from $500 to $1,000.

It's your responsibility to pay for the utilities you use until the day the home transfers to the new homeowners. You may not realize it initially, but that could mean added costs even if you've moved out.

For example, you'll need to keep the air conditioning and heating on even when your home's empty. You also may need to pay for water, sewer, and electricity for those final days.

A capital gains tax is a fee levied on the difference between the amount you spent buying your home and the amount you sell it for, minus improvements you've made.

There are a lot of exemptions to this tax that could reduce how much you actually have to pay. It's worth speaking with a tax professional before you decide to sell your home.

Then there are the homeowner's association fees to consider. You may owe these fees, or a portion of them, for the month you're leaving.

These monthly dues are the same ones you're already paying month-to-month to help cover maintenance costs.

Attorneys typically write up the sales contracts and any other terms and conditions of the sale. Their fees are often included in your real estate agent's fee and are another unexpected cost of selling a home.

It's not unusual to spend $100 to $200 on attorney costs, especially if you're not using a real estate agent.

Sometimes a seller may be asked to complete a radon gas test. This helps ensure the home doesn't have this gas present, which often indicates the home isn't properly ventilated.

The cost of this type of test will vary by location, with at-home versions costing up to $250 and professionals charging $150 to $800.

There may be additional costs associated with the sale of the home if you agree to seller concessions.

You may agree to pay a portion of the buyer's closing costs as part of the deal. There may be repairs or upgrades your buyer wants included in the sales contract. This is all part of the negotiations you have with the buyer to reach an agreement.

For example, you may agree to pay to reduce the home's overall price to cover the cost of repairing a broken sewer pipe. Instead of doing the work yourself, you've reduced what the buyer has to pay you, so they can handle the repairs later.

Selling your home comes with many hidden costs. In addition to the costs of selling the home, there are several other expenses you need to factor in.

These can include moving costs, renting a storage unit for a short time, and buying new furniture.

Knowing what to expect can help you lower your financial stress and get on top of these costs so they don't surprise you.