Want to know what it really cost to sell a house?
If you’re thinking, “Hey, let’s sell this house for $100,000, I should get all $100,000,” that might turn out to be a bit of a disappointment.
We’re going to focus on what it really costs you to sell a house when you go the traditional route.
Real Estate Agent Fees
One of the biggest costs is going to be your realtor fees or your real estate agent fees.
You should expect that to be 6% of your sales price.
3% of that is going to go to your listing agent, the person that works with you, and 3% of that is going to go to the buyer’s agent, the person that’s working with the buyer. That is a big portion of what it’s going to cost you to actually sell the house.
If you sell the house for $200,000, then the agents will typically split the $12,000 commission.
The other part that takes quite a chunk out is going to be your closing costs.
What are all those closing costs?
Those are going to be things the list of charges that you see when you get to the title company for the sale. They will include the title policy, the escrow fees, document preparation fees, recording fees, and attorney’s fees.
You may also be required to provide a survey and the seller can be required to pay for an appraisal if more than one is necessary.
These fees can really start to add up so you want to take that into consideration when you are selling a house.
One thing that people don’t always account for is repairs. Let’s talk about repairs in two sections.
Getting Ready To Sell
If you’re going to get a house ready to sell, you will probably notice a few things that need to be fixed before the house is ready to go on the market. These are often things like a little paint over here, some carpet that has gotten worse over time, or a few holes in the walls.
Whatever it is you think you need to do to get that property ready for sale, those would be one section of your repair costs.
Buyer of Lender Required Repairs
Once your property is under contract with a buyer, they will usually get an inspector to look at the property. After the inspection, it is very common that they will come back and ask for some additional repairs.
You may have to complete these repairs or give back a certain amount of money to the buyer to compensate for the repairs.
If they are using a lender or bank to finance the purchase of the property, that lender may require certain repairs to be done before they will give the buyer the money to purchase your home.
This is another number that you want to keep in mind as you’re looking to sell your home.
Many people overlook the holding costs for a property as they are waiting for it to sell.
What do I mean by that? What I mean is the whole time that your property is on the market, it still is costing you money. You are still paying for things such as electricity bills, water bills, continued maintenance, ect.
You still have to pay taxes as long as you own the property. The mortgage payments still need to be paid until you have completed the sale. The longer it takes to sell, the more those things add up.
If you really want to know what it’s going to cost you to sell a house, make sure you add up all the major costs as well as all the little things so you can get an accurate idea of how much it will really cost to sell your house.
Take the realtor fees, add in the rest of the closing costs, think about and repairs costs, are there going to be any seller concessions, and how much is it going to cost you to hold on to that property.
Add all those numbers up, take it off what you could sell the house for, and then you have a much better idea of what you’re actually going to get when you sell the property.
Hope that helps you to calculate a better number. If we can help you with anything, don’t hesitate to reach out.