Hey there everyone! This is Mike from Mike Buys Any House, and I’m going to be writing a quick blog post today on the costs associated with selling your property. Traditional selling methods require one to work with realtors so that the sale will go seamlessly, but you’re probably asking yourself: just how much money will I make by doing this? There are a lot of factors involved when it comes down to pricing your home for traditional buyers and we’d like to go over them here.
Cost to Sell Home
The first thing to do is check out the fees, meaning you want to see just how much transactions cost when using a realtor. Well, it’s typical for one to pay anywhere from 4% to 6% of their home’s total value in order for realtors to help facilitate a quick and seamless property sale.
Selling your property can be a tiresome and time-consuming process. There are many things you need to consider before entering into such an agreement with a buyer, not least of all dealing with properties that may not be so ideal for sale and keeping tabs on how much you’re willing to negotiate with them to finally reach a price which is good enough to agree upon – because it isn’t always cheap, especially if you want to make a profit in the end.
So, think of it like this: in the event that you plan on putting up your house for $100,000, you should expect to invest at least $4000 – $6000 into promoting it. Think of either cash or equity that you’re going to need to bring to the table.
Repairs
First and foremost, you’re going to want to take a hard look at all the repairs that your property needs. When it comes time to sell your property, sellers are generally required to pass local government certifications of occupancy in order to receive financing. Depending on the laws regarding this process in your area, you may be tasked with getting things fixed up just right as well. If you do choose to sell your home traditionally and use your own financing, it will also prove vital that you meet these requirements in order for you not to have problems when it comes time for the sale.
Selling a property can be hard work, especially with all of the things that go into making this kind of transaction happen. Here are some things that you should know before putting your home on the market:
If your house seems to have too much curb appeal, then it might seem a bit overbearing and so the market will not be attracted to it. So you will want to consider other costs like landscaping and repairs. These can be quite expensive, but it’s better than having a house that’s falling apart because who wouldn’t love that?
Closing Costs
The third thing that we are going to talk about is the closing costs and all of the fees associated with selling your property using a traditional method. The closing costs can be very significant, so this will impact your thinking when you are considering the amount of cash you will make from selling your house. You paid two fees already, a realtor’s fee and staging, landscaping, or repairs to get your property ready for sale – $500-$7,500 depending on what repairs were needed at the property in order to pass inspection.
In general, a breakdown of costs mostly involves the fact that you have to cover your loan and settlement fees which will be different depending on the type of loan or financing that is chosen. Other costs related to this process include taxes, title insurance, and settlement charges among others
Total Cost to Sell Your House
Finally, when considering all that goes into it — from the time it takes and the costs involved, on average you can expect to pay about 9% or so depending on the property’s condition. Let’s say your starting point is a home in the not-so-great condition that requires repairs or renovations. In this case, you could easily pay more than what we’re talking about here — potentially double, even triple this amount. So getting a ballpark figure is helpful, but it can also be misleading because there will likely be other factors at play.
We know it can be intimidating if you don’t have much equity in your home and you may even have to pay for a few extra fees besides the costs that happen when you move. We can see why this would make homeowners feel lost, so we always refer them to our post about closing costs, which has several helpful tips such as offering owners an opportunity to review their quote before paying anything.
I will absorb all that, and you will sell your property quickly and easily so you can reach out and give me a call at 866-420-3298
We look forward to helping you mi selling my house.