When it is time to sell your home, it can feel overwhelming at times. There is so much information, processes, and competition out there. If you do not know how to navigate through the basics of the real estate world, you may end up losing out on money. You spend years building the equity on your home, you do not want to lose out on the profits just from making a stupid mistake.
This guide will highlight a few cost-saving tips for saving money during the sale of a home.
The Costs Incurred When Selling A Home
People don’t usually think about this but it costs a large amount of money to sell a home. Back in the old days, a seller would need a realtor to help connect buyers to the published listing. The costs incurred when selling a home can add up quickly. These costs are estimated to be 15% of the price of the sale.
Commissions For The Agents
Most real estate agents will charge a 6% commission on the closing cost of a home. That number alone doesn’t sound like a lot of money but imagine you are selling your home for $500,000. The realtor’s commission would then be $30,000. Wowzers.
Renovations or Home Improvements Pre-Sale
There are some improvements you can do you your home prior to showing that will give you buyer’s a better showing and heightened perceived value of the home. The more value they see in your home, the more they may be willing to pay for it. Some of the home improvements may include fresh paint, show furniture, a deep cleaning, an overhaul of the lawn, or some minor home renovations that will update the space. If you put a little work into the home before you sell it, you will be rewarded with extra dollar signs.
Closing Costs
The closing costs of a home are the fees and expenses that are paid on a home during the close apart from the down payment. Both the buyer and the seller pay closing costs, but the closing costs of the seller are typically pricier than that of the buyer. The Seller’s closing costs, excluding agent commission, will average 2-4%. These costs include attorney fees, title insurance, transfer tax, HOA Fees, and more.
Moving Fees
When it’s time to move out of your house, you will need a moving company. The moving company can do everything from boxing up your belongings, safe wrapping your furniture, and moving to your new home. The average moving costs to a house in the same city are roughly $2,000.00 whereas long-distance moves’ average cost is $6,000.
Now, with all of those charges outlined, you may be scared to sell your house. There are solutions to highly reduce the cost of selling a home.
Cost-Free Alternatives To List A Home
Why pay money to list a house when you can list your house for free?
On a site like Homelister, a seller can list a house for free. Once the house sells, there will be a small fee for using the site but in the end, you will be saving loads of money.
Why Would You Still Sell A Home The Conventional Way?
Now that you have this information, why would you ever want to sell your home the conventional way? When selling a home the conventional way with a realtor, you will be wasting money paying the closing costs associated with the sale of the home. With new technology and a way to list the home yourself, why would you ever go back?
