Knowing how much it will cost to sell a house before putting it on the market allows the seller to budget the money needed. Sellers don’t always realize that there are costs involved for them when selling their property. These costs will vary depending on the cost of any fix-ups prior to selling, required inspections or certifications, advertising fees and realtor fees. Certain costs can be avoided while others cannot and knowing the difference can save a lot of headaches.
Pre-sale fix-up costs are all of the expenses involved with cleaning up or preparing the home for sale. Painting, new cabinets, new carpet and updated landscaping are a few examples of presale expenses for the seller. All of these are actually something that can increase the value and therefore, the ultimate purchase price of the home. Even though this is an expense that can be optional, it may actually be a favorable expense that will get paid back after the sale of the property.
Any inspections or certifications that are required to be completed beforehand may or may not be the responsibility of the seller. These costs can be negotiated into the purchase agreement to be paid by the buyer or split between the buyer and seller equally. If a realtor is used, they will know the cost to sell a house and what the local inspectors charge to certify the home inspection.
If the house is being sold by the owner and not through a realtor, there will be advertising fees involved. This cost can vary widely depending on how and where the property is marketed. Print ads in the local newspaper will not be that costly, but if the property is listed on a large website or national magazine, the costs may be substantially more. Getting in contact with any potential marketing venue to get price quotes will help to gain a more exact dollar amount for advertising expenses.
Realtor fees are normally a set percentage of the ultimate selling price. Sellers should know this upfront before signing the realtor’s listing contract. Some realtors will negotiate this fee, however, most will not as it is their standard practice. By shopping around, sellers will sometimes find that new realtors will charge a lower percentage in an effort to gain clients and get their business going. This can be a huge benefit to a seller because then they get to keep more of the profit from their home’s sale.
Knowing the cost to sell a house before actually putting it on the market takes a little research, but it can save a lot of frustration and disappointment in the long run. When sellers don’t realize all of the costs involved with selling their home, they may falsely think that they will get all of the money from the sale. Many times the seller’s portion of expenses will be taken out of the final check, leaving the remainder for the seller to deposit in the bank.