Yes, selling a house will cost you money. If you go on the traditional route of selling your house, the average real estate agent commission goes around 5 to 6 percent, depending on where you live, the total cost will likely get higher.
Once you include the additional costs that are common in most home sales such as repairs, closing costs, and relocating costs, your total expenses can hover around 10 percent of your home’s sale price.
You may also want to factor in a substantial amount of time you should invest in waiting for the right buyer to make an offer, get a mortgage, and close the deal. Everyone wants to sell home fast but usually, it takes longer than you’d like.
Here’s a guide to provide you with an overview of how much it costs to sell your home so you can choose the best way to sell your house based on your budget.
You would want to draw as many potential buyers as possible, and this means accentuating the best features of your home while they picture themselves living in the space. This is where staging needed. It includes furniture and decor arrangement to make your home as visually as attractive as possible.
Hiring a professional stager will cost you around $2,300 to $3,200. You can stage the home yourself to save some money, but you’ll have to spend time preparing and maintaining each room. If you opt for DIY staging, take note of what you will need to buy, such as paint, new furniture or light fixtures, decor, and curtains.
Staging is a good investment since according to a survey done by the National Association of Realtors, 29 percent of sellers’ agents reported an increase of 1 up to 5 percent in the dollar value offered by buyers, and 21 percent reported that home value increased by 6 to 10 percent thanks to staging.
Curb appeal can make a difference too. At the low end, landscaping will cost you a few hundred dollars which covers reseeding the lawn or sprucing up flower beds. But it can go higher if you want to add flower beds, plants, trees. That will cost you around $3,239 and will go higher if you have a bigger yard.
Home Repairs and Maintenance Cost
This one is hard to give an estimate to because it will vary per home. If your house is in pretty bad shape and would need expensive repairs and upgrades. You might want to consider selling your house to ‘we buy ugly houses’ companies or companies that will buy your home as-is. It might not be worth the trouble to spend time and money fixing them.
Real Estate Agent Commissions
When you work with a real estate agent, they will take care of the selling legwork for you, including arranging house tours, paperwork, updating listing, and arranging things such as photography of the home. This is more convenient and can save you lots of time. Of course, they aren’t free.
Sellers pay 5 to 6 percent of the sale price to the real estate agent as commission fees. For example, if your home got sold for $250,000, you’d pay $12,500 to $15,000. It is split between your agent and the buyer’s agent.
Seller concessions refer to the closing costs you agree to pay to sweeten the deal. You can make the home more affordable for the buyer and help you close the deal. Buyers usually ask for 1.5 to 2 percent of the home sale price.
Closing costs include an assortment of fees that both the buyer and the seller pay at the close of the transaction. Sellers usually pay between 1 and 3 percent of the home sale cost on average at closing. Typically, the seller will pay the closing fee to the closing agent, property taxes, your attorney’s fee, recording fees, and any costs related to paying off your original mortgage.
Knowing all these costs associated with selling a house can be overwhelming, especially when you are selling a house because you need money. The good news is you can choose to sell your house to a cash home buyer who will shoulder the closing cost, charge no real estate fees, and buy your home as-is.