For many people, when they think about selling their houses, the first thing they will do is look around for a local agent. Agents can be a wonderful asset when selling your house, however, it is not the only strategy you should consider. By doing a little homework, you can successfully sell your house on your own, saving you time and money overall. In our latest blog post, we will discuss some of the most common costs of a traditional listing, so you can determine if hiring an agent is the best choice for you!
When you’re ready to sell your home, you might wonder if hiring a real estate agent is the best way to go. Here’s a breakdown of the costs and factors involved so you can make the best decision for your situation:
The Pre-Listing Costs
Before listing your home on the market, it’s essential to consider how it compares to others on the MLS (Multiple Listing Service). Preparing your home for sale could involve repairs, upgrades, or staging—costs that can add up before you even speak to potential buyers. Many sellers don’t realize the investment needed to make their homes “show-ready.”
Before you consider putting your home on the market, take a look at other homes on the MLS. Check out what people are asking for comparable properties and more importantly, look at what comparable properties are actually selling for. How does your house stack up? Will people opt for your house over the one next door? You will need to look t it from a buyers point of view. They will want to get the most for their money. This means you will likely have to make some repairs, touch-ups and even upgrades to the home in order to be competitive. Houses that sit on the market lose interest among buyers over time. If the property doesn’t sell, people will likely believe there is something wrong with it. You need to come out of the gate with a house that wows potential buyers and proves to be an excellent value for the money.
Agent Costs
While real estate agents can offer valuable services, they don’t work for free. Many agents work hard to market and sell your home, but their commissions, typically around 5-6% of the sale price, come straight out of your pocket. You’ll need to evaluate whether the services they provide justify the cost, especially when selling a home in a desirable area like Ormond Beach.
That said, be wary of those who don’t. While every agreement is different, when you commit to listing with an agent, you also commit to paying their commission which typically runs about 5% – 6% of the final sale price. You will own the agent this amount, even if you sell the property on your own to someone you know. In addition, some agents will charge you for administrative costs, listing fees, marketing, listing sites, photography, and more. Make sure you know exactly what’s included in your listing agreement as no two agents are the same.
At The Closing Table
When closing day arrives, the expenses aren’t over. Besides paying your agent’s commission, you’ll also need to cover closing costs. These can include fees for escrow, title insurance, and other administrative expenses. All of this cuts into your profit, making it essential to understand the full financial picture before deciding to hire an agent.
Once the closing date comes around, in addition to paying your agent, you will also have to come up with the closing costs. You can usually estimate this to be approximately 2% of the final sale price. The closing costs include things like appraisal fees, taxes, deed recording, title search, dee recording, credit checks and more. With a direct sale to Cash Home Buyer Florida, all of these costs are covered for you.
Time Is Of The Essence
When you list your house, you are in a sense, gambling. You aren’t offered any guarantees such as how much you will get or when the house will close by. This can make it difficult to plan ahead and move on with your life. In addition, you will have to continue paying the monthly costs for the home such as insurance, taxes and monthly utilities. An agent can list your house for any price they want, however, that doesn’t mean you will get it. With a direct sale to [comapny], you will be able to know the exact amount you will receive as well as the closing date before signing anything. We aim to make the process as clear and as simple as possible.