The Real Costs of Selling Your Home

By Jamie Reece

20+ years as Principle & Managing Broker, proud UW Business grad, loves competition & negotiating hard, achieving client’s goals thru statistical & opportunity analysis. Can be found sailing, biking, volunteering, or hanging with family when not actively engaged in creating a spreadsheet.

Selling your home in Washington State is a big decision, and understanding the costs involved is crucial to making the most of it. Today, I will guide you through the key expenses that can significantly impact your bottom line.

First, is home preparation. This is often one of the most underestimated aspects of selling a home, but it can make all the difference. Even if your home is in great condition, a little extra effort can go a long way in attracting top offers. This might mean minor repairs, a fresh coat of paint, or even some more extensive updates. These improvements not only enhance your home’s appeal but can also boost its selling price.

Next is the marketing and representation cost. While some sellers might consider handling the sale themselves, professional representation is often the key to achieving the best results. A well-crafted marketing strategy ensures that your home reaches serious buyers, generating interest and competition. This competition can drive up your home’s final sale price. Typically, these services cost between 5% and 8% of the transaction, but the benefits of having an expert who will guide you through the process and negotiate on your behalf are invaluable. It’s an investment that pays off when you secure the best possible deal for your property.

Another critical factor to consider is your mortgage and the real estate excise tax. These are non-negotiable costs that will come into play when you sell your home. Your mortgage will need to be paid off at closing, which is a straightforward but essential part of the process. Additionally, Washington State imposes a real estate excise tax, typically around 1.78% for most homes, though it can increase for properties valued over $1.5 million. Understanding these costs ahead of time allows you to accurately calculate your net proceeds and plan your next steps.

Finally, let’s discuss closing costs. These include title insurance, escrow fees, and other incidental expenses such as recording fees. While these costs generally add up to about 0.5% to 0.75% of the sale price, they play a crucial role in ensuring a smooth and secure transaction. Title insurance protects the buyer by guaranteeing a clear title, while escrow services act as a neutral party to manage the financial and legal aspects of the sale.

By understanding these costs upfront, you can approach the sale of your home with confidence. Selling a home is one of the most significant financial transactions you’ll undertake, and being prepared helps you make informed decisions that maximize your profit. Let’s work together to ensure that you’re set up for success from start to finish. If you need help in selling your home for maximum profit, feel free to send me a text or email.