What Does it Cost to Sell your Home?
If you are considering selling property in our area, look no further than Paffrath & Thomas Real Estate. We have witnessed tremendous growth in Breckenridge and the surrounding communities over the last several decades and we offer our sellers a perspective on this market that few other Realtors can match. Listing your property with Paffrath & Thomas combines this depth and breadth of knowledge with our aggressive marketing campaign and access to our well-established database of clients to put your property at the forefront of our market immediately. Call a Paffrath & Thomas broker today to get a free, no obligation evaluation of your mountain property.
If you are thinking of selling your home property in Summit or Park County, you may be in a position to reap considerable profits. At Paffrath & Thomas we want to help you realize the greatest profits possible. Paffrath & Thomas will help you plan ahead of time and will work to find ways to reduce some costs that are associated with selling.
A few expenses to expect: see the list below of some of the most common expenses when selling property. Some are a matter of choice yet may still be influential upgrades in making sure your house sell for the greatest value possible.
Remodel & Updates:
Before you spend thousands on a new bathroom, paint your entire home or put in a new garden, you should consult a Paffrath & Thomas broker who can advise you on the best ways to spend your energy – and your cash. Take a look at our helpful hints when you prepare to sell. When it comes to inspection items, taking precautionary measures may save yourself a headache and a significant amount of money.
Title Company Closing Costs:
Some Title Company Costs can be negotiated between buyer and seller. Let Paffrath & Thomas help you negotiate the fees associated with selling your home. These fees may include title insurance, recording and transfer fees, title company fees, wiring fees, courier fees and more. To get a better idea of your potential closing costs call a Paffrath & Thomas broker today.
During the inspection process the buyer will have the right to test the home for radon gas. If the buyer requests radon mitigation the seller will likely have to pay for it although it is negotiable. Radon is an odorless radioactive gas that is emitted from uranium deposits. Radon gases will typically seep through the soil to the surface, often leaking through small seams or cracks of the home. Given the natural geology of the Rocky Mountains we have a strong presence of radon and strongly recommend all of our buyers have it tested. In the event that radon gasses exceed the current legal limit, buyers will have the right to negotiate a mitigation system. Radon mitigation usually consist of a process called sub-slab depressurization. This process seals the home with an impermeable layer in the sub-foor and vents the toxic air away from the home. For more information regarding radon gas please call Paffrath & Thomas, we would be happy to answer any of your questions.
Commissions can vary by location and by situation so please call a Paffrath & Thomas broker to get a better evaluation of what you can expect. Working with a knowledgeable Paffrath & Thomas broker will allow you to realize the ultimate profit. You may find a broker that will charge less commission but remember, you get what you pay for. At Paffrath & Thomas we will maximize your profits with unmatched team work, a proven marketing campaign and service that continues well past the closing table.
When it comes to selling your mountain property you may want to talk with your CPA about some of the tax advantages available to you. Take a look at our Investment Property page for more information. You may be an eligible candidate for a 1031 tax deferred exchange. Call your Paffrath & Thomas broker today to see if a 1031 exchange would be right for you!
Depending on your situation you may have to payoff your pre-existing loan balance on the property. This pay off takes place simultaneously with your sale on the closing date.
Unpaid Property Taxes:
If there are any unpaid taxes on the property they will be paid at closing. The taxes will also be prorated proportionately for your term of ownership. There are two ways the amount can be prorated: Taxes for the calendar year immediately preceding OR by the most Recent Mill Levy and Most Recent Assessed Valuation.
In the town of Breckenridge, Frisco and Keystone there is a 1% town transfer tax. This transfer tax is a negotiable item although it is most often seen as a buyers cost. There are also some subdivisions that will have a 2% transfer tax. Call a Paffrath & Thomas broker to find out more regarding the transfer tax and what these funds are used for.
Outstanding HOA dues:
In the event there are any outstanding HOA dues or fines these will be paid during the closing process.
If your property is currently connected to an onsite septic system the county will require an OWS permit upon the transfer of property. The OWS permit consists of a full septic system service & inspection. Keep in mind an OWS permit is only valid for 6 months so speak with a Paffrath & Thomas broker so you can better understand the right timing for obtaining the OWS permit.
Depending on your home we may suggest that you stage your property. Staging will often result in a quicker sale and a greater purchase price than a home that is not staged. Although some homes may need staging a majority will not need anything. At Paffrath & Thomas we have professional contacts that can make different recommendations based on the property and your budget. Often when a home is professionally staged the buyer will notice a much greater sense of arrival and will appreciate the value of the home.
Capital Gains Tax:
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria
-You have lived in the home as your principle residence for two out of the last five years
-You have not sold or exchanged another home during the two years preceding the sale
-You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.
We always suggest that you consult your CPA about any tax related exemptions.
Another cost to consider is moving costs. You may be leaving everything for the new buyer or taking it all with you. Instead of packing up boxes and renting trucks it may be worth paying for the deluxe treatment. This is where a company packs your boxes for you and transports them to the new location. Once again, you can count on Paffrath & Thomas to help find the right moving company at the right price.
A survey can reveal the exact property dimensions, size and location of the home on the property, as well as any other improvements on the land, such as a driveway that may be crossing a property line. This is very important and a cost that the seller should be prepared to pay. A survey will tell the future buyer exactly what they are paying for! Most surveys are required only for vacant land and single family homes. There are several different types of surveys that are offered so call your Paffrath & Thomas broker to talk about the different types and different surveyors to get the job done.
Selling your property can often cost more than anticipated but keep in mind when you choose the right broker they will be able to help you achieve the greatest sales price, negotiate closing costs, and help organize the sale in a manner where you can retain the most money possible. If you are planning on using the proceeds from the sale to BUY A NEW HOME make sure you talk to a Paffrath & Thomas broker so they can help you gauge your approximate net proceeds.