Costs Associated With Selling A Home
Costs Associated With Selling A Home : Selling a home is about more than just making money. There are also costs associated with the process. These include everything from advertising and marketing your property to paying the broker’s fees and notary fees. The article goes over all of the expenses associated with selling a home.
It may appear that the buyer is responsible for the majority of the costs associated with a real estate transaction. However, there are a number of expenses that you, the seller, may have to bear throughout the sale process. Knowing the following cost factors involved in selling a property will assist you in budgeting ahead of time. It will also help you determine your actual profit from the transaction.
Are you looking flat for rent in taloja?
Charges for repairs and remodelling
According to your sale agreement, you may be require to make repairs to the fixtures (plumbing or electrical) to make the property usable for the buyers. Furthermore, in order to gain an advantage over other properties during the sale process, you may need to remodel your property, such as installing a modular kitchen, repainting walls, or upgrading the brand of fixtures, among other things. Depending on the size of the property and the materials used for remodelling, these costs can range from Rs 2-4 lakh.
Advertisement
You may need to use paid advertising methods to speed up the process of finding buyers. These include subscribing to navimumbaihouses.com paid package, renting space in a local newspaper to advertise a property, and so on. Click here to learn more about the paid packages available to sellers on navimumbaihouses.com.
Costs Associated With Selling A Home : Brokerage
If you hired a real estate broker to help you sell your home, you must pay him/her a commission for the services provided. This cost rises to one to two percent of the property’s final sale price (at which the property is being sold to the buyer). Brokers may also request a flat fee rather than a percentage in some cases. These fees differ depending on the broker.
Capital gains taxation
Your capital gains tax liability will be determin by the length of time you have owned the property in question. If you sell the property after holding it for more than two years (from the date of purchase), you will be subject to Long-term Capital Gains Tax (LTCG Tax). The gains from the sale of the property are subject to this tax, which is levied at 20%. Short-term Capital Gains Tax will apply if you own a property for less than two years before selling it. This is taxed base on your income bracket.
Charges for foreclosure
Home loan prepayment or foreclosure refers to the accelerated or complete repayment of the remaining loan amount through higher-than-agreed-upon Equated Monthly Installments (EMIs) or a single payment. If you purchased the property with a home loan and intend to pay off the remainder of the loan before beginning the selling process, your bank may require you to pay foreclosure charges.
Borrowers with fix interest rate loans are charged between one and four percent of the prepayment amount by lenders. To determine the process and the exact amount to be paid, you should thoroughly read your loan documents and speak with a representative of the lending company. You are exempt from foreclosure charges if you have a home loan with a floating interest rate.
Costs Associated With Selling A Home : Attorney’s fees
You would have to pay a fee if you hired a lawyer to act as a consultant on all of the documentation and taxation involved. This also varies according to the lawyer.
Taxes on transfers and recording fees
You would have to pay taxes to the state or local authorities in order to have the title transferred from your name to the buyer’s name. The recording fee must be paid in order to establish that all debts on the property have been fully paid and that there are no outstanding dues.
Costs Associated With Selling A Home : Notary charges
The notary charges this fee to verify all property documents and ensure that they are properly execute during the transaction.
These are all the costs that you as a seller may incur during the selling process. Spend some time quantifying each one to arrive at a total cost figure so you can plan ahead of time.
Affordable 2 BHK Flat For Rent In Kharghar Sector 20
You’re looking for Buy Home In Navi Mumbai we have the Best Buy Properties In Navi Mumbai Like Ready to Move & Nearby possession: https://navimumbaihouses.com/property/search/buy/navi-mumbai-all/
If you want daily property update details please follow us on Facebook Page / YouTube Channel / Twitter
