The True Costs of Selling a Home
Selling a house can be an expensive proposition. There are several costs associated with it, from agent commissions to closing costs and repair expenses. The average cost to sell a house on the market is around 15% of the sale price. In this blog post, we will explore the true costs of selling a house on the market.
Agent CommissionOne of the biggest costs associated with selling a house is the agent commission. Real estate agents typically charge a commission of 6% of the sale price of the home. This commission is split between the buyer's agent and the seller's agent, with each receiving 3% of the sale price.
For example, if your home sells for $300,000, the commission would be $18,000 ($300,000 x 6%). The seller's agent would receive $9,000 and the buyer's agent would receive $9,000.
Closing CostsIn addition to the agent commission, there are also closing costs associated with selling a house. Closing costs typically range from 3-6% of the sale price of the home. These costs include things like title insurance, appraisal fees, attorney fees, and transfer taxes.
Repair CostsBefore putting your home on the market, it's important to make any necessary repairs to ensure that it is in good condition. Repair costs can vary depending on the condition of the home, but a good rule of thumb is to budget around 4% of the sale price for repairs, assuming there are not any major repairs or deferred maintenance. According to Zillow, in 2021, 71% of sellers said they had made repairs to their house before selling it.
It's important to note that if you don't make necessary repairs before selling your home, potential buyers may be less interested in the property, or they may ask for a lower price to compensate for the repairs they will need to make. In addition, it is likely to sit on the market longer as well.
TimeOne hidden cost that many people do not consider is time. As the saying goes, “Time is money.” It typically takes six months or longer to sell a house from the time a seller begins the process.
Finding a realtor, getting the house ready, listing it, showings, negotiations, and closing, it all takes time. If you are not in a hurry to sell your house, this may not be a concern. However, if you have a mortgage that needs to be paid, this could amount in several thousand dollars of additional mortgage payments. Likewise, if you are relocating and the house will be vacant, there is the added risk of burglaries and vandalism.
Other Costs to ConsiderIn addition to agent commission, closing costs, and repair expenses, there are also other costs to consider when selling a home. These may include:
Staging costs: If you decide to stage your home to make it more attractive to potential buyers, you will need to pay for the cost of staging furniture and accessories.
Home inspection: It's common for potential buyers to request a home inspection before purchasing a property. If the inspection reveals any issues that need to be addressed, you may be responsible for even more repair costs.
If you are looking for another solution to avoid these costs, Burnett Home Buyers can help. We purchase properties as-is, pay all the closing costs, and can close in 7 days.
Give us a call for a free, no-obligation cash offer now!