Did you know that home sales reached a record high in 2020? In addition, listings were the lowest they have ever been. But as a seller, do you know how to capitalize and get the best deal?
Part of that knows what costs you will incur on top of the final price. Read on as we discuss the average cost to sell a house.
Real Estate Commission
Whatever your home selling prices are, the real estate commission will be one of the biggest home selling fees. On average, it will be around five to six percent of the sale price. Half of this will go to your real estate agent and half to the buyers.
It is possible to negotiate lower rates. However, this can usually only occur if the home is expected to sell quickly, the home price is high and the market is strong. In this case, it becomes an enticing prospect for an agent and you may have room to negotiate.
A home inspection is not a given when selling a home. However, it can save you a lot of time and effort later down the line. If you are selling the traditional route to people trying to get mortgage approval, it is highly recommended.
A home inspection will notify you of any major problems with the property and its structure. This allows you to make repairs well ahead of listing and prevent any surprises when a buyer does their own inspections. If you want to sell as-is, then you can find more information here.
Repairing the Home
Once you have the home inspection, you should be able to gauge how much you are going to need to spend on repairs for selling your home. Hopefully, you will not need any major repairs to the roof, foundations, or internal systems, as these can add to the cost drastically.
After this, you should speak with a real estate agent to discuss minor cosmetic work. They may advise changing out fittings, such as the bathroom or kitchens.
Generally, most of the closing costs are appropriated to the buyer. However, some do impact the seller as well, most notably the previously mentioned real estate fee.
Often, if you are in a buyer’s market, you may be asked to pay some of the buyer’s costs. These may include property taxes, attorney fees, escrow, brokerage, and courier fees. You just need to work out if the fees are worth the sale.
Finally don’t forget taxes. If the home sells for more than you paid, it counts as a capital gain and you may be taxed. You must also pay property taxes, though you may get a rebate if you have already paid that year’s taxes.
Average Cost to Sell a House
Now you know the average cost to sell a house, you just need to find a buyer. You may incur some costs for listings if you sell without an estate agent. However, these will be less than the final agent commission.
If you found our article informative, visit the rest of our blog. We have everything from property advice to finance to help find your dream home this coming year!