Will Selling A House Cost You Money? When you’re ready to sell your home, there is a chance that it will cost you more than just the time and money to get it sold or even ready to list it in the market, there are many factors that can affect what you get for it.
In some cases, homeowners may find that they are unable to sell their home for as much money as they may need or they did’t expect to spend tons of money to actually being able to sell it. If you do decide to sell your home in this market, there are things you can do to help offset any potential costs.
5 Ways Selling a House Can Cost You Money
1 – Getting your House Ready
Before you make the decision to list your house, you have to get it ready for sale. This is a step many homeowners forget about. This can include a number of different tasks, if you are not sure about what you need to improve, well… the Market is going to be the one telling you what you need to improve, it will tell you what are the things Buyer are looking for in your specific area. For example; new windows, newer doors, landscaping, staging, new fixtures, new carpet, new paint, etc.
These things will cost money but they are necessary if you want your house in good shape when buyers show for a walkthrough at an open house or viewings before putting in offers on your home.
2 – Repairs
One of the main reasons people sell their homes is to relocate, upgrade, downsize or simply because they need to sell. No matter what the reason may be, in most cases, your home will need some work before you are able to list it.
Depending on the condition of your house you may need to make repairs. Specially when you are looking to sell it the traditional way, you need to attract buyers, right?. However this is not the only reason why you need to make those repairs. As you know these buyers are going to be paying for your house using a Mortgage, they have to qualify for this Loan however, your house needs to qualify as well. The bank wont approve a mortgage if the house needs repairs. This will drastically affect the cost of selling your house, because you need to make this repairs in advance. It is better to get an inspection done before you start talking with realtors… Yes, time and repairs are the most common factors that will affect your cost of selling your house
3 – Concession Costs
You may not consider the costs of concessions before but these are often a big part of the negotiation part when selling a house. Concessions often refer to costs or other items the buyer is asking you to cover in the final price before signing on the dotted line .They can include everything from homeowner association dues and transfer fees, repairs, warranty, inspection fees, you name it. there is not something established when we talk about these costs but as a rule of thumb expect concession cost to be around 2% – 3% of overall profits.
When selling your house you need to prepare yourself with all possible concession costs that might come up once an offer is made so you know how much money this could mean when selling a home. It’s important to note however; some Realtors may try pressuring you into covering more than what other Agents would settle for, while others will ask their clients right away about it. We always suggest to make an inform decision, if you have questions about the fees or process talk to different professionals and find the way it works best for you.
4 – Closing Cost
There are different types of houses, obviously… “the bigger the house, the higher the cost”. But there is a limit to this. You need to sell your home at market price. This means you can’t sell for high if others homes in the area sell for low. Closing Cost play a big role here!
Sit back and relax, if you thought repairs were a big deal, Closing Costs may be a pain in the neck.
What are Closing Costs? Are those little fees that pop up at the end of a transaction, they are pretty much the cost you will have to pay in order to sell your house. They can include things like: Prorated taxes, HOA fees, Settlement Fee, Title search, Real Estate Agent commissions from your side and the buyer’s one and many more.
They can vary from state to state but in Texas for example they are around 10% of the sale price. For example, if you are trying to sell your house for $250,000. Closing Cost you would have to pay are $25,000. Yeah… I know. I told you they are a pain in the neck.
The buyer has their own Closing Costs! they are everywhere!
They are a necessary evil when it comes to selling a house.
Make sure also that everything is done right so there aren’t any hidden fees coming after settlement date, otherwise, trust me; things might get ugly fast!
5 – Market conditions and Marketing
Yes, our lovely Market again has its ups and downs so what does that mean? Well it means sometimes properties do not move as fast as expected so in order to keep your house fresh on the market every now and then some money might be needed for marketing purposes.
There are a variety of variables that may influence the amount you get from your property when you sell it. The market is always evolving, which means prices might be too high or low at certain times. It’s critical to make sure you’re prepared for every scenario before putting your home on the market.
Selling a home can be expensive, but with the right professionals on your side, it doesn’t have to be. As you can see it can get very tricky and expensive if you decide to sell your house on the market, but there are more options.
You can sell you house directly to an Investor without worrying about all these costs and headaches.
Investors like us at Go To House Buyer can buy your house directly from you and we will cover all these expensive and time consuming costs, you don’t have to make any repairs or cleaning. You can leave what you want in the house, we will take care of it for you.
This could be the best option if you are looking to avoid all these costs when selling your house. If you think about it you could even get more money in a short period of time when you sell directly to us, you wont be paying any commissions because there are no Real Estate Agents involved, no banks, no showings and no repairs to make!
Now, I’m sure that after reading this post you will know exactly what to expect when trying to sell your house in the market or how much money it can cost you. If not, feel free to contact us so we can put it together for you to see how much does it really will cost you, how long it would take and most important how much money will you receive. Make the comparison yourself you will see there is a big difference between selling your house on the Market vs Selling directly to us.
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Go To House Buyer does not provide legal, tax, or investment advice. This material is for informational purposes only. It should not be considered as investment advice and may not be used as a basis for any financial decisions. Please seek advice from a professional in these areas before making a decision.