Cost To Sell A House
Do you have a house that you're thinking of selling? Are you wondering how much it will cost to sell a house? You're not alone. Selling a house can be expensive, but there are ways to keep the costs down. In this blog post, we'll discuss some of the most common expenses homeowners face when selling their homes. We'll also offer tips on how to save money on each of these expenses. So whether you're just getting started with the selling process or you're almost ready to close, read on for some helpful information on the cost to sell a house!
Repairs
The first, and often forgotten, cost to sell a house is general repairs. In today's market buyers are picky, and they expect a house to be in tip-top shape. If there are any major repairs that need to be made, such as a new roof or foundation, you'll have to pay for them upfront. This will reduce the amount of money your buyer can offer on the home. In some cases sacrificing the sale price could mean sacrificing thousands of dollars upfront.
Another way to improve your chances at selling quickly is to paint your home - both inside and out! Buyers tend to notice the difference between an older-looking house with fresh paint and a newer-looking one with little upkeep. Many buyers will opt for the newer-looking house, which means yours has a greater chance of selling fast and for top dollar!
Most houses will need some type of repair whether that's paint, all the way up to a full gut rehab. Check out other local listings to see what your competition is doing, every market and city is different. Budget at least $10,000 for repairs, but expect it to go much higher than that. If you would rather sell your house fast to a cash home buyer contact us.
Cleaning
A buyer's first impression of a house will be the pictures so it's important to have a clean house. You can always spend a full day deep cleaning your house but in our experience, it is easier to hire a cleaning crew to get it done perfectly. It's a good idea to have the carpets professionally cleaned, and this is something you should definitely splurge on. Carpets are one of the first things buyers will notice so it's worth spending a little extra money to make your house stand out from the rest. Expect to pay $30.00 an hour per person for a good cleaning crew. Budget about $1,000 into the cost to sell a house just for cleaning.
Seasonal Decor
Most people put away their seasonal decor during the months that they aren't using those items. This means by the time you list your home in December or January those decorations could be packed away for nine months! Having these items available and displayed will help sell your home as well as give it a more festive feel (and appeal to potential buyers).
Realtor
The next cost to sell a house is a real estate agent (Realtor) commission. A realtor will list the house on MLS (multiple listing service) and put it in front of as many potential buyers as possible. They will also hold open houses, take great pictures, and write an excellent description for your house which is all good things! The average realtor commission in Illinois is 6%.
Holding Cost
Another cost to sell a house that is often overlooked is holding costs, the basic costs of homeownership. These costs are taxes, mortgage, insurance, utilities, HOA, and any other monthly cost you may have. Every house is different and only you will know this cost. This is one reason homeowners love selling to cash home buyers. They can sell their house in a week and save months of holding costs.
Inspection Repairs
Once you accept an offer the buyers will order an inspection. It is very rare for a house to pass an inspection with no issues (excluding new construction and gut rehabs). The potential buyers will bring that inspection report to the sellers and either ask for a price reduction, demand the seller repair the issues, or get a credit back at closing. Depending on the age of your house expect repairs to cost a few thousand dollars and tens of thousands of dollars if there is a major issue like structural issues, radon, and lead.
Home Warranty
Another cost to sell a house may be a home warranty. A home warranty is a contract that guarantees you will have a new furnace, A/C unit, or other appliance within the next few years. The cost of these warranties varies greatly depending on what exactly they cover and who is providing them.
Buyers Credit
Besides the inspection credits, another cost to sell a home that comes up is a buyer credit. The buyers may ask for a credit at closing to help pay for repairs, furniture, or even appliances. Most requests will amount to about 2-5% of the sale price.
Closing Costs
When calculating the cost to sell a house most homeowners do not realize how much closing costs can be. There are many different fees that go into the closing as we will discuss.
Attorney
Most sellers use an attorney to help them navigate the legal side of selling a house. Most real estate attorneys charge a flat fee per closing. The cost of closing varies based on the attorney but expect to pay roughly $750. This cost to sell a home will be on the closing statement so it will not come out of your pocket, rather this cost will come out of the net proceeds from the sale of your house.
Survey
When selling a house to a homeowner you will be required to provide a survey. If you are selling to a bank or investor they will most likely provide their own survey. A survey is an estimate of the lot size and there is no guarantee that it will match what is recorded at the county. A survey costs about $500. Most we buy houses companies don't require a survey since they are buying the house as is where is.
Title Fees
There will be many different title fees that go into the cost of selling a house. These title fees are usually paid by the seller and split between the buyer and seller. The title company needs to do a title search which costs money and there is also a deed recording fee. Expect to pay a few thousand dollars in title fees and title insurance.
Transfer Taxes
Every state and county requires the seller to purchase transfer stamps. These stamps are a percentage of the sale price and have an average rate of 1%. Most states do not require buyers to purchase transfer stamps. Do some research about this cost to sell your house as each area and county is differnt.
Cost To Sell A House, Wrap Up
Selling a house can be expensive, but it doesn’t have to be. By working with Illinois Real Estate Buyers, you can save thousands of dollars in commissions, fees, and other costs of selling a house. We take on all the costs associated with selling your home so that you don’t have to worry about a thing. Contact us today to learn more about how we can help you sell your house fast and for the best price possible. With us, the cost to sell a house is less.