The US housing market has been in the midst of a huge boom, with record numbers of sales and high prices. Yet as mortgage rates rise along with inflation and the housing cost, sales are beginning to slow. That means now is the time to get your house on the market.
However, nothing comes for free, and selling a property is the same. Read on as we give the cost to sell a house.
- Real Estate Commission
This is usually the biggest of the home selling fees you will pay. It is around 5% to 6% of the final sale price. This amount is split between both the buyer and seller’s real estate agent.
Unfortunately, in most cases, this fee is the responsibility of the seller. You may be able to negotiate a lower fee though this may only be applicable if the home is ready to sell quickly.
There are other options to avoid paying a real estate agent fee. You can list it yourself, though the time and money often equate to that which the agent would charge anyway. You can learn here about selling to a cash buying company as well.
- Pre Sale Inspection
You don’t have to schedule a pre-sale inspection. However, when selling a house it can help to know that no surprises are in store. It will inform you of any major problems before buyers come in and do their own investigations.
If defects are found, you do have a legal responsibility to disclose them. You can either get them fixed or arrange for a lower-price deal with the seller.
- Home Repairs
If you want to know how to sell a house, then making it look great can go a long way. When you are in a buyers market where you have lots of competition from other properties, it is essential.
One of the cheapest ways to spruce up the home is with a fresh coat of paint. other than this you may rehaul the exterior or yard, replace fittings and do general repairs. If you have a dated bathroom or kitchen, you may consider a full replacement.
- Closing Costs
Closing costs are a bundle of fees separate from agent commissions. Luckily, there are fewer involved for the seller than for the buyer and the cost usually comes in between 1% and 3%. They include the attorney fee, recording fees, and property taxes.
It will also include a transfer tax. This is the cost of changing the deed from one owner to another. The amount depends upon the state you are selling in.
Another closing cost is your mortgage payoff, assuming you have one. The money you make from the sale will pay off your old loan.
This will involve a prepayment penalty, usually 2% to 4% of the original loan. If the sale does not cover all the outstanding loans you may have to make the shortfall.
Cost to Sell a House
Now you know the cost to sell a house, do some number crunching. If you have money left to pay on a mortgage compare the costs and your projected earnings against this.
If you found this article insightful, we have many more. From buying to selling, we can help you find your ideal property in the coming year.
