How Much Does It Cost to Sell a House?

The costs of selling a house vary depending on the type of home being considered, but some costs like title insurance are universal, which is why you need to hire a title company like MacGregor Abstract to help you with forms like the RP5217 and to provide title insurance.

Repairs

Due to the number of variables involved, repairs are one of the most challenging aspects to pin down. If the house was well maintained, it might require only a few minor repairs — otherwise, major and costly repairs may be necessary down the line. If there are expensive repairs that you cannot afford to fix, selling ‘as is’ is generally the best option. If you have some DIY skills and a home repair manual, you can get a few minor fixes done yourself and save money on repairs.

FSBO

Many FSBO sellers start by posting on free or low-cost online and newspaper classifieds. People looking to buy a home will occasionally look at these ads, but it is typically a pointless exercise. FSBO (For Sale By Owner) may be less expensive than hiring a real estate agent but may not be a viable option depending on why you are selling the home, when you are selling it, and other factors.

Real Estate Agents

To cover their costs (and make a profit on the sale), nearly all real estate agents will charge a commission fee for advertising, showing, and advising you on how to sell your house. Remember that entering into a “listing agreement” may bind your home for anywhere between 6 months and a year, so think twice before committing to an agent.

Closing Costs

Closing costs are often rolled into the buyer’s mortgage — however, many homebuyers now ask the seller to shoulder the closing costs. Depending on the amount involved, a cost-sharing agreement can be made before closing. Some of the fees that must be paid at the closing include appraisal fees, home inspection fees, title search fees, property taxes, annual fees, and insurance. If you have an interested potential buyer, work with them. Offer to combine closing costs and other fees. Offer owner financing or consult with the current mortgage company to determine whether an assumable loan can be arranged. Make every attempt to keep expenses as low as possible for the buyer to close the sale.

Quick Sale

When a speedy home sale is required, the seller may have to forego any profit and even pay out of pocket for the house to sell. Before transferring title to the buyers, the seller may be required to pay all closing charges, as well as any fees imposed by their mortgage lender. Legal counsel or real estate experts can often help sellers determine how to move forward in this situation. Offering larger commissions to real estate agents can potentially save money in the long run if the home sells quickly. Consider the monthly expense of keeping the property on the market and use it as an incentive to get the property sold quickly.

Rally to get the most money possible, but be prepared to make concessions if necessary.

 

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