When you are getting ready to sell your house, there is an awful lot to think about. What is my house worth? How long will it take to sell? Another very common question we get is – what is the cost of selling my house?
The true cost of selling your house is a lot more than just the closing costs. If you don’t take all of the costs into account, you could waste a lot of time, and end up walking away with a lot less money than you had originally planned.
Read on to find out more about home selling costs, brought to you by the Brilliant Day Homes Team!
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Cost Of Selling A House
The cost of selling a house is actually a lot more than just the closing costs. There are some very important numbers that you should be looking at before going through the process to sell it, to make sure you get the most bang for your buck.
Cost Of Needed Repairs
The first thing to look at is what repairs are needed to get my house ready to go on the market? Is there a leak in the roof you have been putting off? Does one of the faucets not work? Are there windows that won’t open, or get stuck? As you get going, you will probably realize that repairs can cause the cost to sell your house in Houston to add up quickly!
Problems that aren’t fixed, will likely come up in the home inspection. Buyers will use these issues to negotiate to lower the price of the house in some cases, and in some cases will just turn and walk away due to not wanting to deal with the problems. When you have the work done, don’t go cheap with the labor. Make sure to use licensed contractors for doing any work, and ensure that they pull all the required permits. Saving a few bucks upfront on the work can cost you much more when you go to sell and the things have to be re-done.
Cost To Prepare the House
Now that everything is repaired, you are ready to make sure it looks good for any potential buyers. If you have a knack for design, maybe you want to handle the staging yourself. Don’t forget to remove your personal belongings, and any large furniture to make the house feel more open to a potential buyer.
In most cases, it will probably be better to work with an interior decorator, or staging company to make your house feel open and welcoming. You can expect to pay a few hundred to a few thousand dollars for staging, depending on the size of your house and the amount of furniture you need. Keep in mind that no matter how great your house currently is, you will likely find yourself doing some work to make it even better.
Costs To Market The Property
Once your house has been prepped, you will be ready to market it! There can be a wide range of costs that go with marketing. Most of these will depend on your real estate agent. If you decide to list your house with a real estate agent in Houston, make sure you know which types of marketing will be used to sell your home. Some agents are full-service, pulling out all the bells and whistles, while others will simply put your house on the multiple listing service (MLS), hoping for a buyer to come along. Many homeowners find themselves paying for premium listings, professional photography, and other marketing materials.
All Holding Costs
One of the most overlooked costs when selling is the holding costs. Holding costs are how much you are paying while your house is waiting to be sold. By selling your house fast, you can save a lot on the holding costs. Not only are you likely paying a mortgage each month, but you should also account for the utility bills, taxes, HOA fees, lawn care, and the usual maintenance expenses. Don’t forget about the holding costs, as they can really add up over time. For example: if you are paying $2K per month on holding costs, the 3-6 months it takes to sell your house will cost you an extra $6K-$12K out of pocket!
Fees And Commissions For Agents
When you list your house, the agent commissions will be somewhere around 6% of your final sale price. So let’s say your house sells for $200k, you will take $12K right off the top. This is a steep price to pay, but if you don’t have someone to buy your house, you will likely need the help of an agent to find a buyer for you.
Closing Costs For Seller
The closing costs for a seller will usually cost anywhere from 1-3% of the final sale price. So again, if your house sells for $200k, you will likely be spending another $2,000-$6,000 once you reach the closing table. A buyer may also ask for a concession during the renegotiation process. If an issue arises during the home inspection that you are unable or unwilling to pay for, the buyer may request a concession to make up for this. Discuss any possible concessions with your agent to make sure your net proceeds from the sale align with your goals.
When you sell to Brilliant Day Homes, you won’t have to worry about needing to sweeten the deal for your buyer! You will get a competitive, all-cash offer for your house in 24 hours. We will handle everything so you can sell your house fast and move on.
When deciding whether to list your house with an agent or sell it on your own, it’s important to know what everything is really going to cost you. Don’t just rely on your estimated final sale price to tell you which way to sell. You must factor in all of the costs you will face too. Putting your house on the MLS can be expensive. However, for some houses, it makes the most sense. For other properties, a direct sale will ultimately help the seller keep more money in their pocket while saving time and energy. It’s important to look at your property and your situation to determine which selling method will be the best for you!