Perhaps you are aware of the costs it takes to buy a house, and maybe you are even familiar with the costs it takes to sell one as well. However, having an idea of what it will cost is a lot different than understanding absolutely everything you will end up paying for before you finally are able to sell your property. Understanding ALL the costs will help you feel more prepared for the house selling process and less surprised by the fees that come with selling your property.
The Cost of Selling Your Home with a Real Estate Agent
You might have a general idea that you will have to “pay” to sell your unwanted home, but do you know exactly what that will cost you? Are you prepared for each bill that comes your way?
Real Estate Agents Commission
Let’s start with the basics. When you are first looking to sell your property, you want to get with an expert. Oftentimes, the first thing you do when you realize you want to sell your home is getting in touch with a real estate agent. A real estate agent knows the ins and outs of buying and selling homes, and everything it takes to get your home sold. They will be your guide to get your home ready for sale, help negotiate price, and walk you through all the legal paperwork and additional fees needed to sell your home. All their time, effort, and expertise comes at a price. Once your home has sold, you will owe a real estate agent a fee – typically this fee is around 7% of the cost of your house. Let’s say, for instance, that your house sells for $180,000. That means your real estate agents’ bill for their services will be $12,600.
In the typical house selling process, a potential home buyer will pay for a home inspection on your property. This inspection is to ensure the potential homebuyer isn’t walking into anything unexpectedly. Typically there is an offer on the table, but if that inspection doesn’t go well and damage or needed repairs are found, the buyer can pull out of their offer or request contingencies on the property. For example, someone will buy it for $20,000 less “as is”, or will request 5 items to be fixed before they will purchase at the previously agreed-upon price.
To avoid any surprises, it is often recommended to get a pre-sale home inspection. This lets the real estate agent and you, as the homeowner, know exactly what you are working with so that you can negotiate the best price with potential buyers. This pre-sale home inspection typically costs right around $400. That might feel like a big chunk of change when you are looking to sell, but a pre-sale inspection can help you avoid surprises and help you sell your home a lot faster. No homebuyer likes to be the one to discover termite damage, and most people looking to buy a house get weary of those properties that have been on the market for “too long” or saw a big price drop.
Avoid “almost deals” and having a home on the market for “too long” and consider getting a pre-sale inspection. It might actually end up saving you money in the end.
You may also be expected to foot the bill for the closing costs of your house – sometimes even for some of the buyer’s costs. Some of these costs include:
- Homeowners association fees.
These are basically monthly dues collected by homeowners associations by property owners to maintain the upkeep of surrounding properties. As of 2015, the average cost of the HOA in Kansas City is $296.
- Property taxes.
Basically, these are the taxes you pay on the value of your property. Missouri has a median tax of $1,265 for a house worth $139,700.
- Attorney fees.
These are the types of fees paid to lawyers for legal services, especially if you need help with the closing process. The average cost is $1,000-$2,000, depending on the complexity of the situation.
- Transfer taxes.
These are charged during the exchange of homeownership. Typically, the seller must pay $2 for every $500 given. For example, if you sell your home for $180,000 then you would owe $720 in transfer tax.
- Title insurance.
This one protects you if someone lands a claim on your home. The average cost of title insurance is around $1,000.
Many of these fees are negotiable, and you won’t necessarily have to pay for all of them. Still, it’s better to be prepared.
There are often costs associated with just getting your home ready to sell. While these might be smaller costs to you, they still add up! If you do not hire a house stager, (the averge cost is $75-$95 as an hourly rate), then you will likely need to take the time yourself to make the needed updates:
- Removing personal items from the home
Part of the process that goes into home staging is removing personal items. Remove personal knick-knacks, photo frames, and anything that’s hanging on your fridge and in your closet. If you have children, put away their toys. This is so when potential buyers are viewing the home, they have an easier time imagining it as their own. If you don’t have places to store these more personal belongings in the home, it might be a good idea to invest in a storage unit, which can average around $250 per month for its usage.
- Paint the house neutral colors
Painting your house with neutral colors is not only a good idea to make your house look more refreshed and redone, but it also makes your house look bigger and brighter. However, this update could end up costing you a lot more than a Saturday of hard work. General costs for supplies include paint brushes (~ $7-$16), a gallon or so of paint (~$30-$300 per gallon), painter’s tape (~$7.50 per roll), and undercoating spray (~$5 per spray can).
Curb appeal is super important for anyone looking to sell their home. If you don’t have the time or energy for the needed sprucing up of your yard, then you might be looking at an additional $50 to $300 for a landscaper to come in and make the needed improvements.
All of these things might seem small, but can really make a difference when you are looking to sell your home fast. These cosmetic updates could be the difference between your home selling or not. At the end of the day, even if you don’t spend money to hire someone to complete the work for you, you still end up buying supplies and taking up your time and energy to complete the needed projects.
There are other costs that go far beyond money. Not only does it take your time and energy to complete any of the updates to your home, but you have to work around the home buyers’ schedule. You can’t be in your home for open houses or regular showings. If you have kids or pets, they have to leave too! You could be looking at last-minute car rides to the park on a consistent basis, while your real estate agent works to get your home sold. The lack of a schedule, on top of your regular work, can be exhausting and overwhelming.
Even with all of this hard work, effort, and money put into selling your home, you are still not guaranteed that you will close on a sale fast. It could still be months until you rid yourself of your unwanted property. It can be disheartening to put in all that time, energy, and extra income into a property you don’t even want anymore. Then, if no one else wants it either, it can be downright devastating. We at House Guys USA would like to provide another option; one that cuts to the chase, and one that prioritizes helping you achieve your goal to sell your home with NO FEES!
The Cost of Selling Your Home “As Is” For Cash
House Guys USA buys houses for cash in Kansas City. We work directly with homeowners to help them rid themselves of their unwanted property, and if you are looking to sell fast, we can close in as little as 7 days.
We take pride in providing an alternative option to the typical house selling process –
- Sell your property to House Guys USA in as little as 7 days.
- Get cash in your pocket on the day we close on your property.
- No hidden fees or extra costs.
- No additional cleanup after-sale – leave any unwanted items behind and we take care of them.
- Close on a schedule that works for you.
House Guys USA takes the stress out of selling your home and puts cash in your pocket for your unwanted property. If you don’t want to spend all your time and energy refurbishing – that’s no problem.
If you have a house you are looking to sell in Kansas City, or even if you are interested in learning more about what we can do for you, contact us at 816-892-2132 or email us at email@example.com.