Deciding to sell a house and move can be a very exciting decision. It is a symbol of closing one chapter of life and moving onto a new one. However, many people are focused on the high costs of buying a new place to live and are unaware of the expense of selling their old house.
Real Estate Commission
The real estate fee that you will be paying your realtor can add up to many thousands of dollars. Typically, this fee is 5 to 6% of the sale price. For example, if you sell your home for $325,000, you will have to pay the realtor $19,500. For the majority of the time, the sellers need to pay this entire cost and not split it with the buyer’s real estate agent. Real estate agents might be willing to accept a lower commission rate if there are favorable factors in play. This could include a seller’s market, a high house selling price, or if the house is expected to sell very quickly.
To avoid paying realtor fees, a homeowner could try selling the house themselves. However, this is a lot of work. The seller would have to show the house to prospective buyers, negotiate deals, and handle all the documents involving the lawyer. In 2018, only 7% of all home sales in the United States were a sale by the owner.
Fixing up the House
When selling your house, it goes without saying that you want to get top dollar for it. You will want to make as much profit as you can. To do this, it is likely that some repairs will need to get done to enhance the value. This could be simple, such as painting one or two rooms, or it could be very extensive. Fixing leaky sinks could turn into much bigger issues that need to be addressed before the house is sold.
When the seller places an offer on a house, it usually is dependant on a house inspection. If anything comes up during the inspection, the seller may have to fix it before the deal can proceed. This can cost a lot of money, if something like the roof or electrical needed to be repaired. Sometimes the seller will ask that you reduce the sale price, rather than fic it yourself. Either way, you will end up with less money from the sale than you were originally hoping for.
When selling a house, first impressions are crucial. You want the potential buyers to come in and immediately fall in love. Sometimes, this requires professional staging to acquire this look. By hiring a home designer, they can arrange the furniture and decorations to showcase the full potential of the house. Unfortunately, this service does not come cheaply. It usually costs at least $400-$500 at a minimum to stage a whole house. Various factors affect this, such as the length of time the house has been on the market and the size of the house.