If you plan on listing your [property city] house with an agent and selling on-market (aka the MLS), there are costs you need to know about that occur at multiple different steps during the sales process. These include costs before you list, during the listing process, after an offer has been made on your property, and also at the closing table. In our latest post, we will take a look at some of these listing costs so you can determine if a direct sale of your property would be the better choice for your situation.
The costs associated with selling your house can really fluctuate quite a bit, and vary a lot between different markets. No doubt, the condition of the house plays a big role in determining the total costs to sell, since the value of the house is tied directly to the amount of commissions that will be allocated for the buyer’s agent and seller’s agent. And each agent will work a bit differently. Some will charge you for select tasks throughout the process, while others are “all-inclusive.” Before you commit to an agreement, find out what listing your house in Savannah will really cost you! At {company], our main site offers some good information on this topic.
Costs Before the Sale
Well before you even begin a conversation with an agent, or sign a listing agreement, you will need to address the following things in each section below. Several of these items you may be able to knock out on your own, but there are certainly others you will likely find yourself having to pay for. Either way, it’s good to have a heads up on that these things are.
Cleanliness of the Property
One of the first things that you should do to make your home appealing to potential homebuyers is ensure that the house is clean. Of course, this is something that you can do yourself…but a professional cleaning service will likely do a much better job than you can do, and will save you hours and hours of time because they are much more efficient with their time. In fact, a good cleaning can completely transform the appearance of a house, especially if it hasn’t been cleaned for a long period of time. And it’s important to note that you should clean the exterior of your home in addition to the interior. The first impression a homebuyer gets is when they pull up to your property for the first time…heavily soiled windows, moldy siding, etc can have a real negative impact on the impression of a buyer visiting your house for the first time.
Household Goods Storage
Before you begin the process of cleaning your home, it may be a really good idea to put all of your unnecessary items in storage. This is because potential buyers may be turned off by excessive clutter around the home, and removing items will open up your home and make it feel more spacious to a buyer. If you do a local search, you will likely find many storage facilities that can accomodate your storage needs, and there are now pods that you can now order and get staged on your property if you don’t want to move items to an off-site facility.
Fixes and Repairs to the Property
If there is anything visibly broken or damaged on the exterior or interior, you will absolutely want to get these items taken care of before you put your home on the market. This can include repairing holes in walls, painting, replacing damaged tiles, fixing broken floor boards, repairing damaged siding, and replacing broken windows. This might also be a good time to update fixtures in your home that are outdated, such as lights, door handles, etc. Paying for all of these things can really help to improve the value of your home in the eyes of a potential buyer, but you just need to account for what all these up front costs will end up being.
At Bluff Pointe Properties, we buy properties “as-is”, so no repairs are needed. For many homeowners, this can alleviate a lot of headache and stress when it comes time to sell a property. You can check out this page for more info about Bluff Pointe Properties.
Landscaping Around the Property
It would not make sense (nor would it benefit you) to have a beautiful house with an ugly yard and unappealing lot. As you know, the front yard is the first thing people see when they pull up to a house, so you want to make sure it gives a good impression. More than just simply being clean and well-kept, you want your front yard to showcase your home. Think of all the things you can do with hanging baskets, plants, shrubs, flower beds, etc. to add curb appeal to your property. With a little imagination, a nice yard can add a tremendous amount of “”pop” to your property…this is definitely what you should strive for when thinking through landscaping for the property you want to sell.
Costs Incurred While the House is Actually Listed
While the property is on the market, you will still find yourself paying to have it for sale. There are many expenses you will be paying during this time that you could avoid with a fast and direct sale upfront.
Costs for Each Month
While the house sits on the market you will still need to pay the monthly utilities. Even if you have moved out of the house, you still need to keep the water and electricity on for people viewing the home. You will also have to continue paying the homeowner’s insurance and property taxes up until the day of closing. You will also need to continue taking care of the cleaning and routine maintenance of the home. With many properties sitting on the market then having to go through escrow, it could be months until the house has officially closed. During this time, you could be out thousands of dollars you could have otherwise kept in your pocket.
Advertising/Marketing
Some agents will include great marketing, while others will not. To successfully list your house, you will want to ensure there are great listings and great photography of the home. Some people are even hiring drone photographers to capture their homes from above.
After An Offer is Made
Once an offer has been made, and accepted, you will still be responsible for the insurance, utilities, and taxes up until the day of closing. Depending on the lender this could add several weeks to your timeframe. In turn, adding more money you are paying to own the home. Most offers are contingent on an inspection and appraisal process. You can avoid the below costs with a direct offer from a company who purchases as-is.
Agreed Upon (or Negotiated) Repairs
Once the inspection has been completed, you might have to negotiate repairs based on the severity. If there is a major problem with the house, the potential buyer will likely request it be fixed before going through with the sale. (The bank isn’t likely to fund a loan for a damaged property either.) If your buyer decides to rescind the offer, you will need to disclose the needed repair to all potential buyers going forward.
Costs that Pop Up at the Closing Table
Realtor Fees
Once you are signing final sale paperwork, it is also time to sign over a check to your agent. This will typically run about 6% of the final sale price of the home.
Closing Costs
Many additional fees are lumped together as closing costs. These include document filing, title search fees, credit check costs, transfer taxes, property taxes and more. On average, this will run you another 2% of your final sale price.
Once you add up all the costs, you can see that listing may not be right for every property. Many people find greater benefits by choosing a direct sale! Run the numbers for yourself, and make the decision that works best for you!