The average commission for real estate agents is between 5 and 6%, based upon where you live however, the price of selling can be greater.
If you take into account additional costs that are standard for most sales, like closing costs, repairs, and moving expenses, your total costs could exceed 10% of house’s selling cost.
It could also be a significant investment of time in waiting for the perfect buyer to submit an offer, or to qualify for a loan, and finish the deal.
This guide will give you an overview of the amount it would cost to sell your home , so you can select the best option that is within your budget.
How much is price of selling your house in an easy to understand way?
If you are able to sell your house at $248,000 (the median value of single-family homes within the U.S. in 2018) you could pay $41,000 for the total cost. The commission for real estate is likely to be the largest fee you have to pay as a seller.
Find a more thorough description of our estimates for cost of selling your home in the section towards the close of this guide.
How to prepare your home for sell
Prior to listing your home You’ll need to make sure that your property is ready to sell to potential buyers. There are four primary expenses to think about when you prepare your home for sale.
Costs for staging (~1 percent of the sale price)
If potential buyers visit your property first-time it is important for them to be focused on the property’s top characteristics while picturing themselves within the home. This is where staging comes in. Staging is the process of arranging furniture and décor to make your house as visually appealing for buyers as it is. Looking to sell your house fast for cash? We beat the other guys’ offers get a quote
According to a cost comparison site Fixr The average price for hiring professional stagers can range from $2,300 up to $3,200. It is possible to save money by staging your home yourself but you’ll need the time and effort to stage and maintain every room.
If you’re planning to go the DIY option, think about what you’ll need to buy. This could include paint, furniture, lighting fixtures, curtains and other accessories for decoration. It is also possible to lease a deep clean for your carpets. This can be priced between $35 and fifty dollars per month, or hire professional carpet cleaning. This could cost between $80 and $550, according to HomeAdvisor.
The benefits of staging can be realized when you’re in the market to sell. In the National Association of Realtors (NAR) survey 29 percent of agents representing sellers have reported an increase of 1 percentage to 5% in the price that buyers are willing to pay. A quarter of them said that staging had increased the value of homeowners’ value of their home by 6%-10 percent.
Costs for landscaping (~1 percent)
The exterior of your home is just as important than the interior when selling. The curb appeal of your home can attract buyers, especially those who are online shopping and rely on pictures to judge properties. The maintenance of the landscape includes pruning, mulching and the planting of flowers. Standard lawn maintenance includes weeding and fertilization.
On the lower price, landscaping could cost as little as several hundred dollars for something as simple as reseeding your lawn or adding some sprucing to your flower gardens. The cost for an extensive service, such as flower beds, trees, planters as well as other landscaping services is $3,239 as per HomeAdvisor. The cost will obviously depend on the dimensions of your yard as well as the size of the project.
Repairs and Maintenance at Home (varies)
Problems with maintenance and repairs are among the major reasons that pending home sales are not completed at closing. In the case of selling for Selling House, we simplify repairs so that you are assured of a favorable offer as well as greater flexibility in the manner you manage the required repairs. If you’re selling your home the traditional way, making sure that your house is in good shape prior to selling can prevent you from making significant concessions to a buyer in the event that an offer is put in the works.
When you are preparing for selling, make sure you check your home for damage to features damaged appliances, damaged features, and spaces that require cleaned or re-freshed. The checklist for home maintenance will help you understand the most common repairs that could influence the value of your home, and more specifically, what to look out for when you look over each space.
A pre-inspection inspection will also allow you to determine the issues that need to be addressed. The cost of repairs will differ based on the condition of your house. When you’ve outlined the necessary repairs, determine which ones you can tackle yourself and what you’ll require engage a professional. Check out quotes from several contractors to get several options to think about.
Home Improvements (varies)
In addition to repairs, you should consider whether you’d like to undertake any changes to your property, what you would be spending both in terms of cash and time, as well as the chance of earning a profit.
Kitchens, for instance, are the most crucial space for potential buyers, according to an NAR survey. A small remodel can cost you around $21,200 as per the Remodeling Cost 2018 and. value report. The benefits include the potential for an 81.1 percent return on the cost when you sell However, you’ll need to invest your time and energy making the changes yourself. Employing professionals can help you save time however you may find it expensive or inconvenient.
Focusing on small-scale renovations which add value to buyers may be more appropriate in the event that you don’t have many hours or funds to spare. Instead of a full kitchen makeover, for example you could take the weekend changing the cabinet pulls or installing an updated backsplash. Both of these can catch buyers’ attention and increase the value of your home.
The negotiation of the purchase
When your property is ready to sell then your next task is to wait for buyers to submit an offer. Once you’ve received an offer, you’ll begin the next stage of selling the property that usually involves back and forth negotiations among your realtor and agent of the buyer. There’s a second round of costs to consider.
Commissions paid by real estate agents (~5 percent up to 6 percent of the sale price)
Engaging a real estate agent means that they take care of the selling process for you, including organizing tours and scheduling paperwork, as well as updating your listing, and organizing things like taking photos of your house. This can save your time, however the services don’t come for free. In the an average Bankrate states that buyers pay between 5% and 6% of the sales price in commission fees. If you buy a home worth $300,000 this means that you’ll pay $15k to $18,000.
The commission is split among both your buyer’s and agent’s agents. When you sell for Selling House, our service cost is currently around 5percent that is comparable to the traditional 5-6% estate commission, which covers the commission paid by the listing agent as well as the commission of the buyer’s agent in the traditional sale. Find out more about our prices and how it compares with a traditional sale.
You can also fly on your own and sell your house without an agent, however you’re still responsible for the payment of commissions to the agent of the buyer, when you’re represented by an agent. If you assume that’s half of the fee calculated by Bankrate and the NAR, you’ll pay 2.5 percent to 3.5%. Given how 87% of purchasers work with an agent, as per the NAR this commission is typically an inevitable cost.
Concessions for sellers (~1.5 percent to 2 to 2)
A concession implies that you’ve agreed to pay a certain amount of expenses for the buyer, often to sweeten the purchase so that buyers are more inclined to complete the transaction. For instance, they could request assistance in the form of inspection fees and processing fees or any other expenses. Buyers may request concessions if they do not have enough money to cover their closing costs or the house is older and they’d like to conserve funds to pay for upgrades. Buyers may also make use of concessions to bargain in a market for buyers, or to reduce the expense of making an offer higher in order to be competitive in the market for sellers.
The amount that a buyer is able to ask for is limited by the kind of loan. Conventional loans that adhere to Fannie Mae guidelines allow for concessions up to 33% as well as 6% as well as 9% depending on the amount of the buyer’s down. In the case of FHA or VA loans that are insured by both the Federal Housing Administration and the Department of Veterans Affairs, respectively, concessions are limited at the 6% and 4% range according to The Mortgage Reports.
The market in which you’re selling your home will affect the amount you’re willing to pay in concessions. Selling House study of public and internal sales data for homes in our marketplaces shows that when buyers request concessions, they usually demand around 1.5 percent to 2percent of the cost of selling the house.
In the finalization phase of the agreement
Closing costs comprise a range of costs, which are separate from commissions paid to agents. They are paid by buyers and sellers at closing of a real estate deal. We discuss these in our post on closing costs for sellers. According to Realtor.com sellers generally pay between 1 to 3% on average when they close. If you’re planning to sell your house in the range of $250,000 to $250,000, you may have to pay between $2,500 and $7,500 in closing expenses.
The closing costs are typically less expensive for sellers because there are less fees to be paid. In general, the most significant charges you’ll be charged are the closing cost that is paid to the closing agent the cost of property taxes, your attorney’s fee, recording costs as well as a transfer tax and any other costs that are related to paying off your mortgage.
Transfer taxes are charged when the transfer of the title to an item of property from one owner to another. Transfer tax is applied at the county, state or municipal levels. How much you have to pay will depend on the location where the sale is made. Based on the National Conference of State Legislatures 12 states have no real estate transfer tax whatsoever. Arizona offers the transfer fee in one lump sum of $2. The other states have transfer tax rates that generally vary between 0.01 to 5percent of the sale cost.
Payoff of mortgages
Before you are able to officially declare an auction complete then you’ll have in order to settle your debt. The proceeds from the sale will be used to pay off the old loan, however there could be a slight shortfall if the amount of payoff doesn’t include the prorated interest. It is possible that you will need to write an e-check to the lender in order to pay the difference.
You may also have be required to settle a prepayment penalty if you are making your loan payment ahead of time. Prepayment penalties typically are determined at between 2% and 4% of the loan amount you originally took out as per Realtor.com.
Home warranty for the buyer (<1 percent)
Although your homeowner’s insurance typically will cover the structural elements of your house during the case of damage caused by fire or other types of natural catastrophes, homeowner’s warranties have distinct range of coverage. According to Realtor.com Home warranties may be used to cover repairs and/or replacements for kitchen appliances as well as the dryer and washer and plumbing, electrical and heating and cooling systems.
You can also offer the purchase of a warranty that covers the property up to closing so that the buyer is aware of repairs as soon as they sign. Also, you can offer to cover an additional year or two of warranty protection after the closing. Warranty coverage for buyers can range from $300 to $600 in accordance with Realtor.com. It’s an excellent incentive to give buyers however, it’s not required.
Transfer to your new residence
You may think that you’ve paid the expenses of selling your house. However, as you prepare to move into your new home, make sure to take the following expenses into consideration.
The hiring of professional movers offers advantages. A full-service moving company can assist you in packing your belongings, transferring from your old home to the new residence and then taking them out of the box. You can choose to pay a flat cost or an hourly charge for convenience.
HomeAdvisor provides estimates for the costs of moving professionally an entire house of three bedrooms locally is $760 to $1000. Movers will charge you more for longer distances as well as to transport large or bulky objects, like a piano, or your child’s swing set.
If you are planning the purpose of a DIY move, hiring trucks for moving can be as low as $50 or even more than $2,000, as per HomeAdvisor, based on the size of the truck as well as the amount of miles it has that it has traveled. Local moves could cost as little as hundreds of dollars once you take into account the cost of renting the truck and gas. Also, you’ll need to buy boxes, tape and other packing supplies.
If you have items that must be disposed away, you could be required to pay for the use of a dumpster on wheels that can be picked up or have someone else remove the items. In addition, you might have to pay for deposits to cover gas, electricity and water, as well as trash collection in your new residence.
Keep in mind that timing is crucial when it comes to moving. HomeAdvisor estimates that the cost of a move could be double as expensive during summer. From May through September, the demand for moving trucks as well as professional moving services increases, as families typically move during summer when school is out and college students relocate to and from their campuses. A higher level of competition for moving companies typically results in higher prices.
Home cost of transition and overlap (~1 percent)
There is usually a time between the sale of your property and moving into a new home. If you’ve already signed a contract for an additional property and you’re a homeowner, you could be paying fees for ownership of two properties at the same time. It could be a combination of mortgages, utility expenses, HOA fees, property taxes, and homeowners insurance.
If you’re still not closing on your new residence or you’re still trying to find the perfect one You’ll have to set aside money for living arrangements that are temporary. It’s also necessary to pay for the storage of all of your furnishings and items kept until you are able to settle for a permanent home. According to SpareFoot the average monthly cost of self-service storage varies from $66 to $135, based upon what size you choose for your storage unit. Remember, when you’re in this situation, you could require a second move that, aside from being time-consuming, could cost a lot of money.
Our study of both industry and internal information suggests that, when combined, the cost of transition can amount to around one percent of the selling price with a period of one and one-half months. One benefit of Selling the house we offer the buyer control over your move timeframe so that you avoid the costs of housing overlap.
The most important Takeaways
There are usually more expenses for selling a house than the commissions of real estate agents. 5 percent of the price is a good point to begin. Make sure to estimate every one of the costs mentioned in this article, as they are applicable to your particular circumstance. The more precise you are capable of estimating the total amount you’ll have to pay and the lower the chance there is for unforeseen costs. In addition, you’ll be able to be able to better estimate what you’ll take home and the amount you’ll be able to put towards the purchase of your next home.
Distinguishing the costs involved in selling a house
Below, in the following table we provide a breakdown of the typical home selling cost in the table below, taking an offer of $248,000 which is the median price of a single-family house across the U.S. in the fourth quarter of 2018, as per NAR.
If you take all expenses taken into consideration the cost of selling is more than 16percent of sales cost. Be aware that the costs of selling will differ depending on the specific circumstances of the sale, however you will quickly realize that the selling cost goes beyond the commissions paid by real estate agents.