Tips & Advice
There’s More Than Just a Realtor’s Commission
When you consider selling your home, it's best to get a full picture of the process and transaction, so that you can plan accordingly. Most home sellers expect to pay 5-6% in commissions to the real estate agents handling their transactions, but those aren’t the only costs. In reality, a traditional home sale costs the homeowner between 9 and 12%.
Let’s take a look at these other costs and then walk through an example to see how these numbers add up.
You may have projects on your to-do list: repairs you’ve been putting off or updates you’ve wanted to make, but haven’t had the time or money. Over time you get used to your home the way it is, but if you start looking at your house through the eyes of a potential buyer, those updates and repairs may become more obvious.
In addition to repairs and updates, you see now, an inspector or potential buyer may notice things they want to be done before closing on the sale.
It’s a good idea to make a list of things you think might need to be addressed before your house goes on the market, as well as things that may come back in a home inspection. How old is your hot water heater? How about your furnace? Do you have any broken or breaking fixtures, or do any of your doors stick? Are there any issues with the paint, plumbing, or electrical systems? According to HomeAdvisor.com the average cost of home renovations and repairs during a sale was $13,028.
If you’re selling your home to another individual or family, you will also need to plan for closing costs like the buyer’s title insurance policy. Most homeowners spend money staging their home to look more appealing to potential buyers, then pay money to store or move their furniture and personal belongings to their next house after the sale.
If your home is worth $200,000, here’s what it might look like to sell.
The decision to sell your home isn’t always simple. You can read more in posts like these.
If you still have questions or want to talk through options with a real person, we have folks ready to help. Forget the robots and message apps, it’s as easy as picking up the phone.
