Will Selling Cost You Money?

We take a look at the fees and costs associated with selling a house

Will selling cost you money? Many people list their house, not taking into account what it will actually cost them. There are fees and expenses you should be aware of before you list with an agent. In our latest post, we will let you know what costs to expect when selling a home in [market_city]! 

Have you decided to sell your house in [market_city]? There are many things to consider before you decide how to sell! Keep in mind, that listing your house will cost you money both up-front and once the property closes. You must factor this in when pricing your house and decide who you want to work with.

Studies show that the average amount it takes to sell a house in the US is $15,200! That’s a lot of money! Keep in mind, that number varies widely based on where you live and the price of your home.

Will Selling Your House Cost You Money

Agent Commissions – Commissions will typically run about 6% of the final sale price of the home. You will know the agent’s cut when you sign your listing agreement. While this money isn’t paid upfront, it is deducted from the amount you walk away with. Keep this in mind when pricing your home.

If you choose to sell your home to a professional home buyer, you may or may not have this commission.  If your home is listed at the time of sale, and a professional home buyer purchases your home, you would need to pay that commission.  However, if the home is not listed, then you would save that commission.

Agent Fees – Depending on the agency, there might be additional fees charged throughout the selling process. Some agents will pass on marketing and listing fees directly to their clients. Make sure you know what’s included and what you will have to pay for when all is said and done.  Here in the KC metro we often see a $250 to $350 transaction fee for the listing agent to pay their staff, this is on top of the commission you are already paying the agent.  Not all companies charge this extra fee, for example, our sister company Realty Resource will charge a percent or a flat fee for selling the home and does not tack on an additional transaction fee.

Closing Costs – Closing costs include many items that are paid at the closing table. These include transfer fees, title insurance, title search fees, recording fees, transfer taxes, appraisal costs, discount points, credit report fees, and more. Expect to pay about 2% of the final sale price in closing costs.

If you sell to a professional home buyer, they may cover these costs for you.

Taxes – When you list your home for sale, you are responsible for the property taxes, utilities, homeowners insurance, and homeowner association fees up until the day of closing. These amounts can add up to thousands should it take a few months for the property to sell and close. Once you decide to sell, the sooner it happens, the better!

No matter how you sell taxes will be prorated, but do keep in mind that every extra month you own the house that is another month of taxes you have to pay.  So taking a quick closing offer from a professional home buyer, to get the home sold faster, saves the holding costs of taxes, utilities, insurance, and HOA fees that add up for each extra day you own the house.

Preparing Your House for The Market – There is a lot of energy, time, and money that goes into getting a house ready to sell. There are repairs to make, walls to paint, and carpets to clean. You will want to remove personal belongings and stage the home for selling. Whether you work with a professional or do it on your own, you are likely to spend money on new decorative pieces in the house. You should also clean up the yard but also consider some new landscaping to bring more curb appeal to the property.

If you decide to see what a professional home buyer might offer for your house, you will find they don’t care about you doing any “preparing.”  The professional home buyer, like kcmoHomeBuyer will take the property as is sets, warts and all.  No cleaning, no painting, no fixing.  Some will say leave whatever you want saving you time and money of cleaning out the belongings and others will say they want the home emptied.  Here at kcmoHomeBuyer, we can work with you, either way, we just need to know your intentions before we write the contract.

Inspections – While it certainly isn’t required, more and more sellers are paying to have their homes inspected before listing them. This will cost approximately $200 and up. By doing an inspection before you list, you will be able to address any issues with the home before they pop up in your buyer’s inspection. This will also give you negotiating power during the selling process.  On the reverse side, once you have it inspected, you KNOW everything that is wrong with it and by law, you have to disclose those problems or fix them and disclose that you have fixed them.

With a professional home buyer, there is no need for inspections or any repairs.

Storage and Moving – While moving isn’t technically a selling cost, it is a large expense you will have to make once the house closes (if you haven’t done so already.) Whether you hire movers or do it yourself, moving can get expensive! How far are you going? Will you need a truck? Or pizza to bride your friends? You will also want to consider storage costs if you are living in the home while waiting for it to sell. Packing up unnecessary items ahead of time will make the house look nicer and give you an edge when it’s time to move.

Are you ready to sell your house in Kansas City? We can help! Send us a message or give our office a call today!

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