It’s Going To Cost You
If you are in a position that has you asking the question, how much does it cost to sell a house, chances are money is an issue. Or you could be just the type who likes to budget and account for every dollar. Either way, it’s smart to educate yourself on where any significant amount of your investment is going. We’re going to cover this topic in detail in this post, but know this: it’s going to cost you, in both time and money.
Real Estate Agents
Let’s talk about real estate agents, in particular their value vs. their commissions. First of all, though a lot can be said for those who prefer to do it themselves rather than pay a professional, keep in mind that a terrific realtor can make a huge difference in how fast you sell and how much you get for your home. That said, the typical amount for a real estate agent commission is right around 6% of the sale price, so if we use a lower-end figure for our example and say you sell your house for $200,000, the real estate agent commissions total would be $12,000.
That is a significant chunk of change, for sure – but still – in this case, you’ll want to weigh the pros and cons of your particular set of circumstances. In addition, the seller is typically responsible for paying the real estate agent commissions on both sides of the fence. The good news is that the agents usually split a 6% fee. The bad news is that even if you don’t use one, a single realtor will expect the full 6%. Of course, deals can be made at the time of closing, but it is a good assumption.
Home Repairs
If your home is in need of any repairs that will affect passing a home inspection, those costs are on you. This would include things like roof repairs, foundational damage, water damage or plumbing repairs, electrical issues, mold, termite or pest control, and heating or cooling problems. Some of these problems can cause significant damage and therefore cost you quite a bit.
You’ll also want to have a little money to spend on smaller cosmetic projects that will make the biggest differences. These are things like new paint, caulking and grout where needed, replacing hardware and patching holes, plenty of cleaning supplies, and things necessary for better lighting options, such as brighter bulbs or light colored curtains. Potential home buyers state good lighting as one of the most important things they look for.
Closing Costs
They say it’s a seller’s market in Las Vegas and Nevada in particular, right now, due to the comparison of high demand and low supply. Even so, with the sale comes the closing costs, and at the closing table is where the majority of last-minute deals are made. Unfortunately for you, that’s often where the seller agrees to pay for things they did not originally plan on, in order to get the deal closed. Regardless, it’s going to cost you on average another 2-5% of the sale price for the closing costs. If we use our same example of a $200,000 house sale, that would be $4,000 minimum and $10,000 on the high end.
Paying Off Your Mortgage
Of course, you have to remember that whatever you owe on your house has to be deducted, as well. In the vast majority of cases, the house appreciates in value over time, so as long as you’ve got a decent amount of equity in your house, you should definitely be making some money on the deal. Be sure to ask your mortgage payoff amount, as the lender will prorate it and calculate interest accordingly, which will make it less than you anticipate. In any case, be sure to include the remainder of your loan mortgage balance, as you will have to pay off the mortgage first anyway.
Home Staging Or Open House Showings
Home staging is the latest ‘thing’ in home sales marketing, and its extremely high staging costs are being justified by the so-called dramatic increase in the sales price amounts for these homes. It’s really just a terrific interior designer with really terrific furnishings who comes in and “sets the stage” for your house showings. For a smaller 2-3 bedroom home, stagers charge around $1500 – usually per day. This cost can easily reach up to around $10,000 if you’re not careful, but apparently it’s worth the cost in the end. In any case, open house showings can cost you a couple hundred bucks on your own, as well.
Moving And Other Costs
You probably thought we forgot about the rest of the costs, like transfer tax and escrow fees, so here’s a quick list of things the seller is responsible for:
- Property or deed transfer taxes
- Property taxes must be paid in full (will be prorated)
- Recording fees
- Any outstanding liens or judgments against the property
- Repairs required following a home inspection
- Title insurance
- Escrow fees
Plus, we can’t forget to factor in the moving costs, as there’s no way around them! No matter how we do it, there’s a price tag. Figuring that number out is very important, so try to be as realistic as possible when estimating.
In Conclusion
I think we’ve covered the topic quite nicely, and always remember: if you need to consider getting a free, no obligation cash offer from Sell Your House Fast LV, a firm with experienced, trusted, respected cash home buyers who care, they are more than happy to help you. The costs associated with the sale of a house would be significantly decreased. There are no inspections or commissions or fees of any kind! Get your cash typically within a couple of weeks, and sometimes even faster. Call or submit the short form on their website home page, and someone will be in touch right away.
