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Are you are getting ready to sell your home? Congratulations! The sale of your house culminates the end of one era and the beginning of another. Nonetheless, some people can be surprised by the amount of money they lose when they get to closing day. It pays to be prepared.
How much does it cost to sell a house anyway? The answer may surprise you. With this information, you won’t be shocked on closing day. Here are some expenses and fees when selling a house.
How Much Does It Cost to Sell a House
The average cost of selling your home is 15% of the sale price. This includes the costs for agent commissions, home improvements, closing costs, and moving fees. So if you’re selling a home for around $280,000, the closing costs will be around $42,000. Sounds like a lot, right? That’s because it is.
Knowing these potential costs can help you negotiate some of these costs to put money back in your pocket.
Agent Commissions
According to a report from the Department of Justice, the average commission your real estate broker or agent will receive is between 5% and 6%. These fees are incurred because on average, real estate agents can sell your home more aggressively than if you sold your house on your own.
According to a report from the National Association of Realtors, on average sell a home for $80,000 more than if a homeowner. That’s a good chunk of change. But does it add up in the end? To be continued…
Home Improvements
Home improvements take into account the fees incurred for a home inspection, home repairs, and home staging fees. These are essential to getting the best rate for your home.
Home Inspection
Home inspections provide sellers with information about potential problems with plumbing, electrical, HVAC, roof, and foundation. Getting this information can help you get in front of problems that could slow down the sale of your home. A home inspection usually costs between $280 – $400.
Home Repairs
Based on the report you receive from your home inspector, you can expect an average cost between $4,000 – 18,500. Knowing this important cost can help you manage the costs of selling your home.
Home Staging
Most agents will want to stage your home to sell. The average expense for staging a home run between $450 – $1,800. Staging is a technique that declutters a house, brings light in, and attempts to show off a home’s features. By doing this, you’ll bring in more potential buyers.
Closing Costs
Closing costs range around 3% of the sale price. This is usually paid on the closing day. For a home that sells for $280,000, this would cost about $8,400. You might be saying to yourself, “man, these costs are really adding up.” You’d be right.
Moving Costs
Depending on the size of your home and the number of things you are bringing with you, consider paying around $800 – $1,500 for moving costs. This is if you are moving in-state. If you are moving out of state, this could be considerably more.
Breaking it All Down
How much does it cost to sell a house? Taking into account all of the fees incurred during the sale of your home, let’s take a moment to break it all down. Let’s again assume you are selling your home for $280,000
Agent Commissions – (6%) $16,800
Home Inspection – (<1%) $350
Home Repairs – (5%) $14,000
Home Staging – (<1%) $1,100
Closing Costs – (3%) $8,400
Moving Costs – (<1%) $1,200
This adds up to around 15% of the sale of your home. Adding these fees we get $41,850. Take that away from the $80,000 your broker got you, and you made roughly $40,000 back on your fees.
BUT WAIT…
What if you didn’t use a broker…What if there was a way to sell your home without a lot of these fees. Would that interest you?
Let’s say for the sake of argument you sold your home on your own.
So you sell your house for $200,000
No Agent Fees – save yourself $12,000
No Home Inspection – Save $350
No Home Repairs – save $10,000
No Home Staging – save $1,100
You’ve saved $23,450 on your closing costs. If you’re looking to sell your house fast consider going through a home buying service. You can save yourself money on loads of fees.
The Choice Is Yours
No one but you knows which option is best for your family. Hopefully, this article helps you decide what works for you.
Keep checking back on our blog for more information and tips on this topic and others.
