When looking to sell your home, you often want the fastest, cheapest way to sell a house. You want to walk away with money in the bank and less stress.
However, home selling can quickly become an overwhelming and expensive endeavor without the right knowledge. When you factor in real estate agent fees, repairs, closing fees, and all other costs, you can end up spending more than you thought you would.
Additionally, dealing with home inspectors, repairs, prospective home buyers, and real estate agents is exhausting. Here are some tips and tricks to help you avoid stress and anxiety and keep your home selling costs down.
Know Your House Selling Fees
If you’re looking for the cheapest way to sell a house, it is paramount that you understand the costs of selling a house before you start the process. You do not just sell your house at the asking price and pocket the cash. There are many fees and costs associated with selling your house. Knowing these costs and budgeting for them in your sale price will ensure you do not incur unprecedented expenses.
Standard house selling fees incurred in the real estate market are:
This cost is optional, but many people overlook it. Real estate agents often encourage you to stage the house to make an appealing first impression. Prospective buyers need to feel at home when viewing your house.
Because of this, you may need to stage the house to feel like a home and encourage potential buyers to settle on it. You do not have to incur staging costs, especially if you sell the house while you live there. However, for empty houses, staging can make a difference in the number of offers you get.
Home Improvement Costs
Repairs and renovations can cost you a large amount of money. You must handle any repairs to get market value for your house. You will also need to pay for a home inspection to assure buyers your home meets all safety standards.
Any renovations and upgrades like landscaping can significantly increase your home’s sale price. Home improvement costs are optional, but you should take them on to increase the sale price. Without repairs and renovations, it is unlikely that you will sell your house at the listing price.
Real Estate Agent Commissions
Real estate agents charge commissions starting from 5%, with some earning as much as 10%. You will have to incur the commission cost if you use a real estate agent. Realtors make it easier for you to sell your house. They have the know-how of the housing market and often can get the job done faster than you can.
Depending on how good a realtor is and the market, they may get you a much higher selling price. However, all these benefits come at a cost. Real estate agents must afford to live, so you must pay them their commission. This commission is often split between the buyer’s agent and the seller’s agent.
Even if you move out before selling your house, you will want to continue paying for utilities like water and electricity. It is hard to show prospective buyers a home with no lighting or air conditioning, especially in the summer. While utility bills in an unoccupied house are low, they are still a cost of house selling you should keep in mind.
Part of the home-selling process is paying a lot of taxes. Unfortunately, homeowners often forget how many types of taxes they must pay when transferring ownership. These taxes include transfer taxes, property taxes, and capital gains tax. These taxes can account for a large portion of your selling expenses.
You can use the proceeds of your home sale to settle your mortgage if you have one. The payoff on the mortgage is likely less than you owe, so it should not cause concern. Additionally, you will have to pay prorated accrued interest and a prepayment penalty fee.
Once your home is sold, you can move to your new house. Moving costs are determined by distance, the number of items, and the movers you choose. You can lower your moving costs by moving yourself, but this can be draining and take several days.
Seller Concession Costs
These are optional costs to incur, but they make the home sale process go smoothly, including paying for the buyer’s agent, inspection fees, and processing fees. In a buyer’s market, seller concessions can help you close the deal and get a good home sale price.
Closing costs are needed to complete a real estate transaction and are usually incurred by both the house seller and the home buyer. Closing costs may include appraisal fees, title searches, title insurance, surveys, credit report charges, escrow fees, and HOA fees.
In a seller’s market, potential home buyers may offer to cover closing costs fully to make their offer stand out. Budget for closing costs regardless to ensure you don’t end up at a loss after you’ve sold your house.
Have You Calculated for Repairs & Renovations
Part of the big checklist for selling a house is checking for any damage to fix and improvements to make. Repairs help increase the home value, especially for older homes. Older homes may struggle to sell when a new home can fetch higher than the asking price in a hot market.
An element of the home selling process is making the house welcoming and functional. Repairs and renovations help increase the house’s value and thus increase the home sale price.
There are two major costs when it comes to renovations and repairs. First, labor is a major cost of both renovations and repairs. Regardless of how much you choose to do, you will still need to account for labor. Whether you choose to DIY or have a professional handle the repairs, labor is part of the cost of repairs and renovations.
Materials are a significant cost of renovations and repairs. Repainting, landscaping, rewiring, and other home improvement projects require specific materials. Some materials are cheap, and sourcing them during sales and offers helps lessen the cost.
Cheapest Ways To Sell A House
Here are a few of the cheapest ways to sell a house fast in Fort Worth.
FSBO is the largest database of houses for sale by owner. It helps owners sell their homes directly to buyers without a real estate agent. By using FSBO, you forgo real estate agent fees but pay a flat fee to list your house on their site.
Accept Cash Offers
A cash offer can significantly lower your costs when selling a house. Many companies give competitive cash offers to home sellers across the country, like in Arlington, Texas, and many other locations.
Have an Open house
Instead of having multiple showings, you can host an open house. You can ask a realtor to host an open house or set one up yourself. Advertising on local chats or listings services can get you access to a large pool of potential buyers.
Tips for Lowering Costs When Selling a House
While you cannot avoid additional costs when selling a house, you can lower the costs incurred. Here are a few tips for reducing costs when selling a house:
Hire A Qualified Realtor
Using a qualified local agent can help you lower your costs. They understand the local market, have the relevant know-how and connections, and can navigate a lot of red tape. Paying a 5% commission rate but avoiding additional costs helps you keep your selling costs low.
Research and Budget
Without proper research, you will end up with unforeseen costs. Taking time to gather information related to house selling costs in your area will help you avoid unprecedented costs later on. With the proper information, you can budget for all selling costs. Then, you can either add them to the sale price, especially if it is a seller’s market, or check with your bank if they can cover the costs.
Avoid Big Projects
Selling a house that requires a lot of significant repairs to pass a home inspection at the market rate is unlawful. You will have to lower your asking price significantly. When selling run-down or dilapidated houses, you simply have to agree to take a loss. You can only take on minor repairs and minimal renovation costs to keep our selling costs low.
Skip The Real Estate Agent
You can choose to sell to companies that buy houses in cash across the country. You can also host an open house and sell directly to an interested buyer. Using a listing service instead of a traditional agent can also help lower costs. Any of these options will help you avoid the 5-6% relator costs incurred when you use a real estate agent.
Regardless of the state of the housing market, you will always incur additional costs when selling your house. However, you can lower your house-selling costs with some crafty DIY skills, careful planning, and good budgeting. So, if you’re looking for cash home buyers in Texas and the cheapest way to sell a house, we can help you as we buy houses Arlington buyers are looking to buy quickly.