Knowing how expensive it is to sell a house with a realtor, we recommend calling A1 Buyers for a no obligation cash offer on your home. Zero Realtor Fees and we pay all your closing costs. A1 Buyers will even let you choose the closing date that’s best for you. It only takes a few minutes and it may just be the best decision you’ve ever made.
While the normal real estate agent fee floats around 5% to 6%, with respect to where you reside, the total selling cost is likely to get higher. Whenever you consider extra costs which are mutual to sales such as, closing costs, repairs, and relocating costs, then the total profit you may get from selling your house can hover around 10%. There can also be a considerable time investment as you wait for the right homebuyer to make an offer, become eligible, and finally close the deal.
This article gives you a summary of how much it will cost to sell your house, in order for you to be able to select the right way to sell your home that is also beneficial to your budget. In case you are considering different options, compare the cost of selling to A1 buyers to other old-schooled sales.
Prior to getting your home ready for sale, you will want to make sure that it is market-ready in order to attract interested homebuyers. There are four key costs you should consider as you get your home prepared, these include:
When potential buyers see your home for the very first time, you will definitely want them to concentrate on the best features in the house, while picturing themselves residing in it. That is where proper home staging comes to play. Home staging has to do with getting the furniture arranged and decorated in order to make the home visually attractive to the buyers as much as possible.
According to Fixr, the average national cost for engaging a home stager starts from $2,300 to $3,300. Staging your home by yourself can help you save up money, however, you will need to invest quality time in preparing and maintaining it.
In case you are going for the DIY option, then you have to consider what you will need to buy. These may include, curtains, paint, light fixtures, as well as decorative accessories. You might also need to rent a carpets cleaner, which often cost around $35 to $50 daily, or you can pay for professional carpets cleaning, which cost around $80 to $350 as per HomeAdvisor.
Proper home staging pays off when it is time to sell your home. In a survey carried out by the National Association of Realtors, 29% of home sellers agents reported a 1% to 5% increase in the amount offered by homebuyers. About 21% stated that home staging increases the value of the home by 6% to 10%.
The exterior part of your home is almost as important as the interior whenever it concerns home selling. Buyers easily get entice by curb appeal, especially those buyers who shop online and are used to relying on photos and comparing homes online. Landscape maintenance includes things such as pruning shrubs, mulching, as well as flower planting.
Landscaping, however, can cost a few hundreds of dollars in case you are doing something that isn’t too difficult such as sprucing up flower beds or lawn reseeding. The average cost charged for a comprehensive service on plants, flower beds, trees, field, etc. is usually $3,239, as per the HomeAdvisor. This would undoubtedly be dependent on your yard size as well as the length of the job.
Repair and maintenance problems are one of the preliminary reasons why most pending home sales fall through in the end. In case you are selling your home to A1 buyers, we ensure the repair process is simplified in order for you to have the certainty of various competitive offers as well as more flexibility in how you handle the required repairs. In case you are selling via the traditional way, making sure your home is in a good condition before putting it out for sale can help you in avoiding making any serious concessions to the homebuyer when an offer is made.
As you are getting ready to sell your home, ensure you carry out a thorough search for features that may have gotten damaged, broken appliances, as well as spaces that needs refreshment or cleaning. Our home repair and maintenance checklist will guide you and give you an insight on how to go about using common repair tools which can increase the value of your home, and enlighten you on where to search as you go about inspecting your home.
Carrying out a pre-inspection evaluation or assessment can help you locate those things that need to be repaired. As you write down necessary repairs, make a decision on those repairs and maintenance which you can do on your own, and the ones you will need the help of a professional. Find out how different contractors charge, so you can have a list of options to choose from.
Apart from repairs and maintenance, find out if you will need to make an improvement on your home, what it may cost you (in terms of time and money), as well as the possible return on investment.
For instance, kitchen’s space is what homebuyers are always interested in, according to a survey by NAR. A small kitchen remodel can cost about $21,200, according to the 2018 Remodeling Cost versus Value Report. The benefit is an 81.1% regain of the sale cost, however, you are investing energy and time if you are doing a remodel by yourself. Engaging trained professionals can save you both energy and time, but you may find it cost-prohibitive or inconvenient.
Concentrating on smaller home renovations that enhance buyer’s value might be more sensible in case you do not have money or time to spare. Instead of carrying out a complete kitchen remodeling, for example, you can use a weekend in making sure cabinet pulls are updated, and a brand-new backsplash has been installed. These can catch the attention of any potential homebuyer and also enhance the value of your home.
As soon as your home is ready for listing, the next thing to do is waiting for a homebuyer to make an offer. After you have accepted the offer, you can then move to the next stage of the selling procedures, which normally has to do with certain back and forth price negotiations between the buyer’s agent and your agent.
Engaging a real estate agent means that they are responsible for coordinating the selling process for you, such as scheduling paperwork, arranging tours, making sure your listings are updating, and also organizing things like photography for your home. Irrespective of the fact that this can help in saving you time and energy, these services do not come for free. Normally, sellers of bank rates sellers pay around 5% to 6% of the home sale price as a concession to a real estate agent. For a $450,000 home, you would need to about $22,500 to $27,000 concession to your real estate agent. This amount is split between the buyer’s agent and your agent. In case you are selling to A1 buyers, our concession is currently around 6% which is quite similar to the 5% to 6% real estate remunerations or concession which covers both the buyer’s agent and the listing agent’s remuneration in a traditional home sale.
You can as well sell your home by yourself without hiring any real estate agent, however, you would still be held responsible for paying the buyer’s agent commission, in a situation where the buyer hires an agent. If that is half the average cost for agent’s concession, you would be paying around 2.5% to 3% of the sale price. For the fact that research has proven that about 87% of homebuyers use an agent, that concession is simply inevitable.
A discount means you have decided to pay a certain amount to the buyer, typically as a means of enticing the buyer so he can make and close a deal. For instance, they may ask for help with processing fees, inspection fees, or other costs. A homebuyer may ask for a discount if he/she do not have sufficient cash to cover all their closing costs or in case the home is outdated and they need to save up money to carry out a future renovation. Buyers can also use these discounts as a negotiating instrument in the buyer’s market, or to counterbalance the cost of making a higher offer in order to compete in the seller’s market.
The market in which you are selling can influence the amount of discount you may pay to your buyer. A1 buyer’s analysis of public and internal home sale data in our markets shows that whenever buyers ask for discounts or concessions, they usually ask for 1.2% to 2% of the sale price.
As your deal is coming to an end, there are some costs you need to plan for.
Closing costs are other fees which are different from the commission agents charge. Home sellers normally pay around 1% to 3% of the home sale price at the end of the deal. In case you are planning to sell your home for $400,000, you could possibly pay between $4,000 and %12,000 for closing costs.
Closing costs are often lower for the person selling since lesser fees are involved. Normally, the main cost you will pay include property taxes, recording fees, attorney’s fee, transfer tax, and any other cost involved in concluding your mortgage deal.
Transfer taxes are applicable when transferring the name of a real estate from one individual to another. Transfer tax could be assessed at the state, county, or the municipal levels. The place where the sale will take place is what determines the amount you will pay for transfer taxes. The National Conference of State Legislature revealed that about 12 states do not charge any transfer tax. Arizona charges an even transfer tax fee of $2. Other states have to transfer fees that normally range between 0.01$ to 5% of the home’s sale price.
Before you can officially complete a sale, you will need to pay off the mortgage. The earnings from the sale are then used in paying off your old loan, however, there might be a little deficit if the amount of mortgage payoff excludes prorated interest. You may have to draw up a check in favor of the lender in other to make up for the deficit.
Furthermore, you might have to pay an advance penalty fee for paying off your mortgage loan ahead of schedule. Advance penalty fees are typically set between 2% to 4% of the initial loan amount.
While homeowner’s insurance normally covers the physical aspects of the home in case of fire-related damages and other natural disasters, a buyer’s home warranty is quite different. Home warranties cover replacement and/or repair cost for the dryer, washer, and other kitchen appliances, as well as the heating, electrical, air and heating systems.
You can decide to buy a warranty for covering the home in case of closing, so the homebuyers know they won’t face any repair cost as soon as they close the deal. Or you can also decide to pay for two, or three years, warranty coverage after the deal has been closed. A homebuyer warranty usually cost around $300 to $600.
By now, you may be thinking you are done with paying for all the costs involved in selling your house. However, as you are making plans of relocating to your new home, ensure to take the following expenses and costs into considerations as well.
You might move prior to the closing of the deal or after. Three factors influencing moving costs include:
Hiring the services of a professional mover has its own advantages. A professional mover can coordinate the packing of all your belongings, relocating them to your new home, and having them unpacked. You might be charged an hourly fee or a flat fee for these services.
The cost of hiring a mover to relocate a three-bedroom home normally cost about $760 to $1,000. Certain things determine the amount movers may charge for their services, these include the bulkiness of the items and the distance of your new home. In case you want to relocate by yourself, renting a moving truck can cost between $50 to $75, depending on the moving truck size as well as the number of miles covered.
Usually, there is always a period of transition between selling your home and relocating to a new home. In case you have already closed the deal for a new home, you may pay ownership cost for two different homes simultaneously. These may include, HOA fees, utility costs, homeowner’s insurance, and property taxes.
If you have not concluded the deal for a new home or you are still looking for the right one, you will need to make plans for a temporary residence. You will also need to pay if you want your properties, furniture, and other belongings properly stored until when you are ready to move into your new home.
Our analysis on industry and internal data revealed that transition cost normally sums up to about 1.2% of the home sale price, in case it is a two months transition period. One of the benefits associated with selling your home to A1 buyers is that we will provide you with guild lines on how to prepare your moving timeline, so you do not fall a victim of these home transition and overlap costs.
Normally, there are more costs involve in selling your home apart from the concession paid to a real estate agent. 10% of your home’s sale price is a good start. Take time to individually calculate each of the costs mentioned here, in case they are applicable to your situation. The more you are able to accurately calculate the total amount you will pay, the lesser the chances of you getting different surprises. Moreover, it will also give you a better idea of the total amount you get to walk away with, and thus how much you can use in purchasing your new home.
Breaking down the costs involved in selling a house:
In the table below, common home selling costs are broken down, assuming a homebuyer offers a price of $200,000. You can clearly see that after taking all the costs into account, the total selling cost reaches about 16% of the home sale price.
|Cost item||Cost amount||% of the offer price|
|Home repairs & renovations *||$10,429||5%|
|Negotiating the sale|
|Real estate agent commissions||$12,000||6%|
|Finalizing the deal|
|Closing costs *||$2,000||1%|
|Transition and overlap costs||$2,000||1%|
*Includes the estimated cost of escrow, title, transfer tax, and notary.
*For renovation and repair costs, we used the 2018 national average.