How Much Does It Cost to Sell a House? The Complete Guide
Selling your home can be both a pleasant and unpleasant experience. Some people sell their homes out of necessity; some sell their homes because they’re moving up in the world.
Things change, and it’s up to us as individuals to learn how to adapt and make things change in our favor. For instance, selling a home might sound easy, but it’s really not.
There are so many things to consider. And in this article, we will cover the question of “how much does it cost to sell a house?”. Surprise, you have to spend some money to make some money.
So whenever you’re ready to begin the process of separation from your beloved home, keep reading.
How Much Does It Cost to Sell A House: Preparing for Sale
In most cases, there will always be some costs related to selling a home on the market. With modern technological advancements, the digital appeal is next of kin to curb appeal.
You want to make sure that your listings stand out digitally, as well as in person. Seller costs vary based on the condition of the home, location, and much more.
For instance, pre-sale renovations can include replacing cabinet hardware, painting doors, purchasing new light fixtures. Major repairs can include a new roof, new carpets, repairing water damage.
Not to mention, exterior changes will be made as well, such as window washing, landscaping, driveway resurfacing.
Make sure not to take on all of these projects before you consult with an agent. Some projects are not necessary and will only waste your time and money. You have to capitalize on high-return resale investments.
Sales Price Determination
When determining a listing price, a realtor will most likely make use of a market analysis that reviews the home costs in your locale. After this, you and the realtor will set a realistic price that will be profitable and competitive.
When selling the home as an owner, it’s up to you to price the home. Looking at similar homes and their prices in the area can give you a general sense, but homes vary greatly in value so you can lose money by avoiding data
An appraiser can help you, they usually cost about $300, depending on your location. They will help you determine the true value of the home, based on physical characteristics alone.
There will be no need to set a price with a blind eye, and simply hope that it’s not too low or too high.
Photography & Marketing
In most cases, your realtor will set up professional photos for you to showcase the home in its best light.
If you go for sale by yourself, you will be responsible for taking the photos of the exterior and interior. You can hire a professional photographer to help you attract a positive response from potential buyers.
Usually, a realtor lists your home on MLS (Multiple Listing Service). Selling as an owner means you can market your home however you like.
Whether you want to take an ad in the newspaper, put a sign in the front yard, list on websites like Kijiji or Craigslist, you can do it.
Paid listings online, signage, brochures, and print ads are not free. Depending on how much you want to market and how long it takes to sell your home, you can end up spending thousands of dollars at this stage.
Survey & Inspection
The next factor eating into sales cost is survey and inspection. This is vital to a legitimate sale of a home. Potential buyers will have the home inspected on their own anyhow.
But you should still have the home inspected to fix any problems, or at the least, know of what the inspection can uncover.
Home sellers can often be liable for homes with major issues that should have been written in the contract. An inspection will allow the seller to take appropriate steps to ensure the home is safe for resale.
Surveying the land is also very important, as it’s necessary to assess the official property line of the land. Lot information can be found in public records of the county, and they can be bought for a menial fee.
Many owners choose to include a warrant with their home sale. The warranty usually lasts about a year, and in some locales, offering the warranty is mandatory.
It usually covers the roof, HVAC, septic, and those kinds of things. Depending on the coverage, home warranties can cost $450 on average, but they do come with great benefit to the buyer and seller.
People who scream “sell my house” aren’t going to get much if they don’t understand everything that makes up the sale. So you’re already ahead of the curb.
With a realtor, you will work together to decide upon a commission rate that you will pay them. The total is calculated based on the home price at closing, as well as a flat fee in most cases.
Although the buyer might have to pay an insignificant fee, they usually don’t pay for their agent’s commission. Most commonly, the seller of the home pays the brokerage commissions, and the listing broker pays the agent of the buyer.
As you get closer to closing, the buyer’s agent and your listing agent will work together to finalize the buyer’s loan approval, home inspection, title commitment, utility transfer, appraisal, closing date, etc.
These activities are all necessary constituents of the closing process. Each of them generates an amount towards the seller’s expenses, also known as closing costs.
The closing costs for the buyer are usually about 3% of the total purchase price. While the buyer is expected to pay these costs unless otherwise agreed upon, buyer’s usually don’t have that kind of cash on hand.
As a seller, you can choose to accept the offer from a buyer who wants you to pay closing costs, or you can simply wait for a buyer who has the money to pay for these costs themselves.
So even though we cannot provide an accurate amount for how much does it cost to sell a house, you have a general sense of the costs that will amount towards the total cost.
Your Home Sold
Now that you have discovered this general sense of how much does it cost to sell a house, you are well on your way to begin the process of selling your own home. As long as you don’t cut corners, be ethical with reasonable buyers, and remain patient, your home will sell in no time.
If you’re interested in similar content, feel free to check some of our other real estate articles on this website.