There is always a high demand for residential properties, no matter what time of year it is. In fact, if you look at how most millionaires made their fortune, you’ll see that real estate investment is consistently at the top of the list. This is because real estate involves real assets, and everyone knows that these assets will continue to appreciate.
For many families buying a house is an expensive purchase. So, of course, they’ll be looking for houses for sale that not only have the functionalities that their family requires but are also priced within their budget. That’s why if you’re planning to sell a house, you should be very familiar with how to set a price for it.
Breakdown of Home Selling Costs in Massachusetts
The average home value in Massachusetts is currently around $464,000. While this certainly is a great selling price, keep in mind that there are real estate costs for the seller. Such costs are spread across the following expense categories:
1. Home Preparations
The amount of time, effort, and money you need to invest in your home depends on its present condition. If you think major repairs and upgrades are still needed, make sure to hire a professional team that can carry out your plans exactly as you envisioned. A checklist is also useful so that you don’t overlook anything because once it’s on the market, potential buyers will closely examine every nook and corner.
2. Realtor Commission
One sure way to find a buyer for your home in MA is to seek professional assistance from credible real estate agents. With their in-depth knowledge and years of experience in all types of home selling transactions, you will get the best price for your property. If you go this route, you will have to pay your agent a commission based on the selling price of your home as specified in the listing agreement. In Massachusetts, the average realtor commission is 3.8-4.6% of the total price.
There’s no telling how long your house will be on the market– it could be two weeks, a month, or even longer! If it doesn’t sell as quickly as you hoped you need to know that you are still obligated to pay its property taxes because you are still the titled owner. What this means is that the longer
your property stays on the market, the more taxes you’ll have to pay. As such, working with a real estate agent is a great way to reduce your time on market.
4. Closing Costs
To finalize the real estate transaction, both buyers and sellers are to pay a collection of fees that are separate from realtor’s commission, and this is called closing costs. Title insurance, title search fees, transfer fees or transfer taxes, appraisal fees, courier fees, and recording fees are common fees associated with a home closing. Seller closing costs in MA are around 0.9% of your home’s final sale price.
In Massachusetts, the seller is typically responsible for the following closing costs:
- Real Estate Attorney Fees. You’ll need the assistance of a lawyer as he can explain relevant legal matters to you and draft the legal documents associated with the sale. The attorney’s fee is usually between $800 and $1100.
- State Excise Tax Stamps. Certain documents must be stamped to prove that the tax has been paid, which is what the excise stamp tax fee confirms. Although the excise tax is set at roughly 0.456% of the price of the home, the actual amount can vary between counties.
- Smoke and Carbon Monoxide Detector Certificate. Any house for sale must have a certificate proving that the smoke and carbon monoxide detectors work. The inspection is performed by the local fire department, which charges a fee between $50 and $100 for its services.
Massachusetts has one of the nation’s strongest real estate markets. If you want to sell a house in the South Shore Massachusetts area, ReMax can help! We’ve got some of Massachusetts’ best real estate agents who can give you free, objective advice on how to get the best price for your home. Give us a call today at 781-829-4301.