The real estate market is changing and, apart from the buyers looking at the price of buying a house, sellers must also look at the price of selling a house. According to CNBC, homeowners can spend an average of $15,000 to sell a home, and some of these costs were considered surprising for first-time sellers.
However, by avoiding unnecessary costs, homeowners can spend less and earn a larger profit. These are the two primary expenses you should take into account before selling your home.
Renovations, Repairs, and Staging
Real estate agents and potential buyers want to see that a home doesn’t require costly repairs after they buy it, so sellers renovate or repair their home to attract buyers. Doing so will cost between $1,500 and $4,000, depending on your location and the house’s condition.
There’s also the cost of staging to consider. Some buyers like to see the house furnished, so sellers rent furniture and decorations and hire professional stagers. The average cost of this is estimated at $1,208.
Is this avoidable? Some real estate agencies do not require these things to be convinced. Instead, they buy the house “as is,” regardless of condition, renovate it themselves, and find a buyer to sell it to. Homestead Road says this puts the burden of the costs with the real estate company and gives the original homeowner 20% more profit.
This is the largest fee a homeowner has to pay, ranging from five to six percent of the sale or, in 2017, around $11,000. On top of this, there are also closing costs which can take another two to four percent.
Is it avoidable? Yes, if there are no agents involved in the sale and you find a buyer on your own. However, if you choose to do this, you assume the responsibilities of a realtor and must handle all the legal technicalities.
Homeowners need to find the best deals available to make sure their sale can turn into a profit. The best course of action would be to find a potential buyer and handle all the real estate matters yourself, which will be a real burden, or find a real estate agent who is willing to buy your home “as is” and sell it.