What Does It Cost to Sell a House
Do you know how much it really costs to sell your house? When working with a real estate agent, there can be numerous costs that many sellers aren’t aware of. Before signing a listing agreement with a Kansas City real estate agent, ask them to prepare a net sheet. This way, you’ll know all the costs you’re likely to face.
Many homeowners aren’t fully prepared for what’s required when selling a house with a real estate agent. The process involves significant costs, time commitments, and exhausting activities. Below, we’ll explore what it costs to sell your house with an agent, compared to selling it directly to a professional buyer like kcmoHomeBuyer. You can even get an offer from our team, allowing you to plug in the numbers and decide which selling method is best for you.
Hiring an Agent to Sell Your House – Commissions
When you hire a real estate agent, you’ll face commission costs when the house sells. These costs can significantly impact your profits. The average commission is around 6% of the final sale price. For instance, if you sell your house for $150,000, you’ll need to pay your agent $9,000, not including any transaction fees some agents may charge.
While this commission is negotiable, it often covers valuable services. Agents offer tips to make your home show-ready, connect you with resources, take professional photos, write effective marketing materials, and expose your home to many potential buyers. Additionally, they help qualify buyers, work with other agents, and schedule showings. Listing your home with an agent can maximize its exposure, but not every seller has the time for this process.
Closing Costs that the Seller Traditionally Has
Closing costs include transfer taxes, recording fees, and other miscellaneous expenses. When working with an agent, you can expect to spend about 2% of the final sale price on closing costs.
These costs can vary widely. In Kansas, they typically include transfer taxes, the cost of an owner’s title policy for the buyer, title company fees, recording fees for deeds or lien releases, tax prorations, and homeowner association prorations. At kcmoHomeBuyer, we generally expect seller closing costs to come from the seller’s proceeds, while the buyer covers their own. However, we can include these costs in our offer if you prefer.
Repairs to Get the Home Ready to Sell
Repair costs can add up quickly. You might start with small repairs before listing, only to find they escalate into major expenses. In many cases, you may have to make additional repairs after the inspection period. Homebuyers often negotiate after an inspection, asking for repairs, credits, or discounts on the price.
Even after completely renovating a home, we sometimes face another $2,000 to $3,000 in repairs following an inspection. If your home needs updates and repairs, a traditional buyer may request even more.
We recommend assessing necessary repairs before listing your house. Sometimes, investing time and money in repairs can lead to a higher sale price and a quicker sale. However, you must consider the time and money required. What if your DIY repairs don’t turn out well? Or worse, what if a contractor fails to deliver, costing you more time and money? Once you know your repair costs, get a cash offer from us and weigh it against the time and money needed for repairs.
Holding Costs Till Sold
Many people underestimate the cost of owning a home. As a homeowner, you face ongoing expenses like property taxes, homeowners insurance, and utility bills. These costs can be substantial, especially if your home is older and less energy-efficient. Additionally, you’ll need to maintain and repair the house to keep it ready for showings. If your house sits on the market for too long, these holding costs can add up. However, when you sell your house directly to kcmoHomeBuyer, we can close on your property quickly, often within days, freeing you from these ongoing expenses.
Seller Concessions
Seller concessions are an often overlooked cost. For example, we recently reviewed homes sold on Elmira Street where we are selling a house. Our research showed that in 7 out of 8 cases, the seller paid the buyer’s closing costs. These costs ranged from $3,000 to $5,000, reducing the seller’s profits.
If you sell to a professional buyer like us, we cover our own closing costs. This means more money in your pocket.
Marketing Expenses
Marketing costs can be significant when selling your house the traditional way. Depending on your agent, you may need to cover some of these expenses yourself. This could include premium listings, professional signage, or photography to showcase your property. Don’t assume that hiring an agent will cover all marketing costs. Every agent is different, and you may end up spending more than you anticipated to sell your house quickly.
Your Time is an Overlooked Cost
One often overlooked cost is your time. Everyone’s time has value, but this varies from person to person. Consider how you value your time. Do you want to spend it preparing a house for sale, or would you rather sell quickly and move on with your life?
Selling Your House Directly
On the other hand, selling your house directly to kcmoHomeBuyer won’t cost you a thing. While not every buyer operates the same way, selling to our team will free you from any costs or fees. You won’t need to worry about making repairs, cleaning, or waiting for a buyer. There are no commissions, agent fees, or marketing costs. You can sell your house quickly and move on.
Before you sell your house, it’s important to know the exact costs involved. Many sellers are blindsided by unexpected fees and expenses when working with a local real estate agent. Before signing a listing agreement, consider what we can do for you. A direct sale might be the solution you need. However, you won’t know for sure until you get a no-obligation offer from our team.
If you want to sell your house in without any of the costs or waiting, reach out to our team today to find out what we can do for you!
