With home prices up 7 percent nationally over the past year, you may be wondering why you’re having a difficult time selling your home or not getting the offers you expected.
In many places, the price uptick over in the last 12 months has motivated more people to sell their homes. That means even greater competition for sellers.
In a competitive market, it’s understandable to want to turn to a professional and hire an agent. However, doing that has costs – both obvious and hidden.
To help you better understand the real costs of selling your home through an agent, here is a list of things you may need to invest in before closing the sale with a real estate agent.
1. Real Estate Agent’s Commission
The most obvious expense of selling a home through a realtor is the real estate commission, which typically comes out to 6 percent of the total sale cost for your home.
While this percentage is usually split between the seller’s agent and the buyer’s agent, for a home that sells for $200,000, it could end up costing you an additional $12,000 in fees once everything is finalized.
2. Home Repairs
Agents often advise you to spruce up your home, to make it more attractive to buyers or avoid issues during inspection. But to do that, you may need to hire the services of a professional handyman or general contractor to get the job done right.
Depending on the project, even a quick room remodel or needed repair can cost upwards of a few thousand dollars. And often, the cost of the repairs will be greater than the value they add. It’s easy to spend $10,000 on repairs that add only $5,000 in value to your home, leaving you out $5,000.
3. Home Inspection
According to consumer review website Angie’s List, the average home inspection in 2016 cost between $375 to $550 for most homeowners.
Buyers often pay for their own inspections. However, if you’re having trouble selling your house, you may need to reassure buyers by hiring your own inspector – or the buyer may insist you pay for the inspection.
4. Home Staging
If you’re still struggling to sell your home, you may need to consider a home staging. The reason for this is that 90% of purchasers begin their journey online, and those buyers want to visualize what it will be like living in your home.
Though it can add value to your home’s final sale price, it’s still a bit of a gamble that could cost you roughly $1,000, according to Home Advisor.
5. Adding Up the True Costs
When you add up all the costs of selling your home through a realtor, the cost is significant for most homeowners. Here’s what it could cost for a $200,000 house:
- Agent commission: $12,000
- Net cost of repairs/upgrades: $5,000
- Home inspection: $550
- Home staging: $1,000
So in this hypothetical case, the total costs would be $18,550 – 9.2% of the home’s value.
Add on all the other costs of a home sale, from sales and transfer taxes to homeowners association (HOA) fees to title insurance, and the costs of selling through an agent can really eat into the value of your home.
Buy Every Home cuts the costs of selling your home by simplifying and speeding up the sales process from offer to sale. In 24 to 48 hours, our team can provide you with a quote on purchasing your home, no pre-approval necessary, and usually complete the closing process within one week – with no agents.
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