How Much Does It Cost to Sell My House?
Many homeowners are shocked to find out how much profit they lose in selling expenses when selling their house. As such, a traditional home sale can be expensive, costing a seller thousands of dollars in repairs, realtor commissions, and closing costs.
For this reason, many home sellers are looking for alternatives to a traditional home sale, such as a cash home sale which costs the seller virtually nothing. Below we look at some of the most common selling expenses and how much you can expect to pay to sell your house.
Expenses to Expect When Selling Your House
Some of the most common selling expenses include
|Realtor commissions||Five to six percent of sale price|
|Repairs or home improvements||$15,000|
1. Realtor Commissions
The real estate commission is usually the biggest fee a seller pays — historically somewhere between 5 percent to 6 percent of the sale price. So, if you sell your house for $300,000, say, you could end up paying $18,000 in commissions.
The commission is split between the seller’s agent and the buyer’s agent. In most cases, the seller bears this cost. You may be able to negotiate a lower commission, however. Real estate agents could be more likely to accept a lower rate when the home is expected to sell quickly, the local market is strong or the home price is relatively high.
2. Closing Costs
Closing costs are a collection of fees required to set up and close a new mortgage. They can range from 2-5% of the mortgage amount for both home purchase and refinance loans. In addition, closing costs are often a smaller percentage on a refinance loan because some fees— like transfer taxes and owners title insurance — aren’t included.
Common closing costs include
- Loan origination fee or broker fee
- Mortgage points or discount points
- Processing fee or underwriting fee
- Title search fee and title insurance
- Escrow fee
- Home appraisal fee
- Home inspection fee
- Prepaid taxes and insurance
- Real estate attorney fee
- Homeowners association transfer fee
3. Home Repairs
If your home inspection uncovers big issues, such as a damaged roof or bad plumbing, you might have to pay to fix them in order to close the deal. Big repairs can set you back financially, so be prepared before you decide to sell, especially if you expect problems.
Which fixups are necessary (such as replacing cracked windows or stained carpeting) and which (such as major remodels) should be left for the buyer to handle is a separate discussion in itself. But there's practically no house that couldn't use some quick maintenance to make it look cared for. Make the buyer's home inspector's job easy by taking care of some of the most common repairs inspectors encounter.
4. Home Staging
Home staging is temporarily redecorating your house so that when buyers come to tour it, your home looks its best and it’s easier for the buyers to visualize themselves living there. Home staging efforts go beyond adding charming furniture and decorations.
A good home seller makes the home look larger, ensures the decorations appeal to a large group of buyers, and removes clutter and personal items that are difficult for buyers to look past. Home staging can involve:
- An assessment of your entire home with documented notes and photographs of your home
- A detailed vision statement that guides design decisions
- Supporting documents that will outline rental furniture suggestions and room layouts
- Color scheme plan that incorporates painting
- A to-do list for the homeowners to help guide them through decluttering and organizing their home
- Professional decluttering, organization, and packing services
- Shopping services to buy or rent decorative items such as artwork, plants, and bedding
Get a Fast Cash Offer from Local Guy Buys Houses
Before you call the realtor, let us look at your house first. At Local Guy Buys Houses, we buy houses as-is. Call 855-205-5999 to get a fast cash offer!