Save on home sale expenses
At some point in every homeowner’s journey, the thought of selling your home arises.
Life changes. New opportunities arise. Surprises occur. We never know what can happen, or where life can take us.
The best thing that we can all do is make the best choices when we’re confronted with changes.
When it comes to homeowners deliberating whether to sell their home or not, it’s important that they have a clear understanding of all of their options.
Sellers should never rush into a sale. For one, it’s not their only option. It’s also not the best choice. While it stands as a natural phase of the homeowners’ experience, there are other strategies that offer more benefits and fewer drawbacks.
If you’re thinking about selling your house, weigh the costs. Perhaps turning your home into a rental and benefiting from long-term, residual income is a better strategy.
Should I Sell My Home?
The experts at Knox always say no — never sell your home.
While listing your home for sale and reaping the immediate profits might sound alluring, it’s typically not a wise long-term strategy. Selling your home does give homeowners a substantial lump-sum payment, but that’s only one payout. After closing, when the deal finalizes, that’s it. Your home is no longer a promising source of income for you or your family.
It’s also important to keep in mind that selling your home isn’t free. On the contrary, the process racks up a bill.
Selling your home invites home sale expenses that severely reduce the profitability of the deal. These home sale expenses cut into your returns — and in many cases, sellers don’t walk away with the profits they expected when they first decided to list their homes.
Since home sale expenses cut into profits, selling your home isn’t as good of an investment opportunity as it sounds. A deeper look reveals the expenses that sellers need to pay for their transactions.
12 Home Sale Expenses
Selling your home isn’t free, and it isn’t cheap, either.
Sellers need to be aware of these 12 home sale expenses that they’ll need to pay — before, during, and after the deal.
- Preparing your home for sale
- Cleaning the home
- Home inspections
- Storing your junk
- Staging services
- Property photography
- Home repairs
- Real estate commissions
- Closing costs
- Selling fees
- Property tax
- Capital gains tax
After all these home sale expenses are paid for, sellers have subtracted a significant amount from their profits.
Sellers typically pay 10% of their property’s closing costs towards fees, commissions, and other home sale expenses.
Consider Keeping Your Home, Instead
Whether you’re retiring and looking to downsize, or growing your family and moving into a larger home, or simply relocating to a new home that better fits your needs, keeping your home can be a better investment choice.
When you keep your home, you’re holding on to its equity and can continue building wealth through the real estate asset.
Homeowners who are looking to sell can keep their homes and convert them into market-beating investment opportunities as a single-family rental. When you keep your home as a real estate investment, you’re saying “no” to the ridiculous home sale expenses and saying “yes” to long-term profits.
Here are 3 benefits of keeping your home as an investment property.
Investment Properties Become a Passive Source of Income
As an investment property owner, you’ll be creating a passive source of income. Passive income streams are a powerful way to foster financial growth. Single-family rentals lock in a stable monthly income that can help stabilize your finances.
Build Generational Wealth for your Family
Keeping your home as an investment lets your family reap the benefits of investment property ownership — even after you’re gone. Real estate is stable and lasting, making it a promising avenue for building wealth that lasts longer than your lifetime.
Stick Around for your Home’s Growing Value
Property values increase over time.
When you sell your home, you’re not only missing out on the equity you’ve built, but you’re also losing a valuable asset. Keeping your home lets owners stick around to benefit from their home’s growing value.
If you’re interested in learning more about what keeping your home as an investment opportunity can do for you, Knox Financial can help.
As the first wealth advisors dedicated to serving property owners, we’re looking forward to helping you actualize your investment goals. Learn more about what Knox can. do for you.
Visit our website to try out our property wealth calculator to see how much your home can generate as an investment.
If you have specific questions, don’t hesitate to reach out to one of our experts. Click here to get in touch with us, or call us at 866-448-7608.