Are you looking to sell your home in Memphis but have found that the costs surrounding preparing your real estate property for sale are astronomical? Even if your home’s value is high, the resale many homeowners face comes with many hidden costs.
For instance, home improvements may add value to the final sale price, but not everyone has the money for renovation. You will also need to consider the commission fees of your real estate agent and whether you can negotiate the price down. If you’re looking for inexpensive solutions to sell a house in Memphis, you’ve come to the right place.
Below, we discuss cheaper ways to complete your home sale and ensure a good return on investment. Keep reading to learn the cheapest way to sell a house in Memphis, Tennessee.
Research the Memphis Real Estate Market
First, you will want to research the Memphis real estate market and look up the city’s housing market news. After all, it can be advantageous to stay updated on property news, whether it’s valuation increases or new building developments. Such information will guide you on the prices of Memphis homes in the coming months.
When looking for the cheapest way to sell a house, you will need to know your local real estate market and price your home accordingly. By choosing a competitive price to sell more quickly, you’ll find home buyers won’t expect you to shelve out money for an entire home renovation.
Potential buyers will appreciate an affordable resale value. While you may sell for slightly less than the value of your home, you won’t need to invest in major home improvement projects.
Currently, the Memphis real estate market has many affordable homes and a large number of renters. As such, it’s a good idea to work with an experienced real estate investor if you want to sell a house fast in Memphis.
Memphis is enjoying a booming job market, while the city’s GDP has grown by 30 percent over the last decade, ballooning above $77 billion.
Overall employment has increased by 0.96 percent year-over-year. The sectors with the largest employment growth include:
- Professional and business services
While home values have grown by 22.1 percent over the past year, the Zillow Home Value Index (ZHVI) was $153,894 for Memphis in June 2022. However, it’s best to utilize a professional to get a truly accurate value of your home and generate interest in your property.
Know Your House Selling Fees in Memphis
The typical house selling fees you will find in Memphis include:
- Real estate agent commission fees
- Moving costs
- Seller concessions such as inspection and appraisal fees
- The prices of remodeling projects, landscaping, and smaller DIY projects
However, there are several steps you can take to lower your house selling fees. First, you can negotiate a lower commission fee with your realtor. While few agents advertise that they’re open to a reduced fee, you’ll find that many are willing to cut their fee if it presents a favorable outcome for both sides.
Movers can cost you $1,395 on average for relocations less than 100 miles. Some realtors can offer a free moving truck, while U-Haul provides a free box exchange. Should all else fail, ask your friends and family to help with the move.
If you’re willing to take on seller concessions, you may want to set a slightly higher sale price for your home so that you don’t have to take on these costs out-of-pocket.
When it comes to home upgrades, don’t choose the expensive and best home improvements. Instead, find cost-effective solutions like a minor kitchen remodel, a fresh coat of paint in your kitchen and bathrooms, or a simple window replacement. You can merely plant some flowers and a bush to improve your home’s curb appeal.
How Much Will Repairs Cost?
When budgeting for home maintenance projects, you might want to choose the one percent rule of thumb. Essentially, the repair and home maintenance costs should align with one percent of your home’s last purchase price.
You can also use the square footage rule to figure out how much repairs and upgrades will cost. That rule consists of putting aside $1 per year for every square foot of your home to cover repair costs. For instance, if you live in a 1,500-square-foot home and haven’t completed upgrades in five years, you can expect to spend around $7,500 on home improvement projects.
Some repairs will always cost more than others. For instance, repairing a few hinges on your front door won’t cost nearly as much as fixing or replacing a garage door. A garage door replacement ranges from $590 to $1,650 in total cost.
If possible, focus on more minor repairs, such as fixing a faucet, installing light fixtures, and ensuring HVAC functionality, instead of high-end upgrades suggested in a remodeling magazine.
How Much Will Renovations Cost?
The first impression home buyers get from a house they see is essential for getting an offer. You’ll want to put some money toward renovations and staging, whether it’s adding in hardwood floors, installing accessibility features, or making your property more energy-efficient. Yet, how much do renovations cost?
If you only want to redo your kitchen countertops, costs will usually range from $1850 to $4,200. However, you may see prices that are lower than that. In that context, look for cheaper materials when hiring someone to replace your countertops.
A bathroom remodel can cost as high as $16,615 or as low as $6,152. In addition, you will need to consider your home’s exterior. For a minor roof repair, expect to pay anywhere from $150 to $1,500. Also, you may need to paint your house. When choosing a paint color, make sure to pick neutral colors, as bright neon may turn off potential buyers.
Elsewhere, you will want to make your outdoor space look more inviting, which can attract buyers and further help increase home value.
Cheapest Ways To Sell a House in Memphis
Some of the cheapest ways to sell a home in Memphis include making smart home renovation decisions such as completing DIY projects instead of hiring professionals. Some other options include:
- Hiring a qualified and experienced realtor who can cut costs
- Avoid over-improving your property beyond what’s common in your area
- Complete simple repairs and upgrades yourself
- Comparison shop before hiring a professional handyman
- Put your home on the market at the right time (usually in the late Spring)
- Check the sales contract diligently
It’s a good idea to figure out what to fix before selling a house in Tennessee, as your neighborhood can dictate the maximum price home buyers are willing to put forward. With this information on hand, you won’t need to complete extensive upgrades if your area has middle-of-the-road houses.
Moreover, you’ll need to determine who pays for the closing costs. Are you willing to provide buyer concessions like covering closing costs? If so, you might want to list your home at a slightly higher price to avoid paying out-of-pocket.
Tips for Lowering Costs When Selling a House
Our biggest tips for lowering costs associated with your home sale include cutting down on all non-essential spending. For example, you might not need as many renovations as you think. Further, you may want to stage the home yourself instead of hiring a professional. Also, you don’t need to provide buyer concessions if that’s not within your budget.
Make sure to read the sales contract carefully to negotiate any extraneous fees, such as the buyer expecting you to foot the home inspection costs.
You may even want to forego hiring a realtor and, instead, look for a cash home buyer to purchase your property much more quickly.
Cutting Down Non-Essential Costs
You will want to complete more DIY projects instead of hiring expensive professionals. Also, you should only complete the most critical home upgrades and avoid entire room remodels. Cutting down on non-essential costs will go a long way toward reducing the amount you spend on your home sale.
Do You Need a Realtor
You may want to avoid hiring a realtor if you’re thinking of finding a real estate investor or cash home buyer. That way, you won’t need to cover the commission fees of an agent. These fees can get as high as three to five percent of the home sale.
Could You Sell to a Cash Home Buyer
If you choose to sell to a cash home buyer, you can sell your property in its as-is condition. As such, you won’t need to cover the costs of repairs or renovations. That will save you many thousands of dollars.
The cheapest way to sell a house will involve following some basic steps. In particular, you’ll need to pursue only the most essential renovations and repairs while completing as many projects yourself as possible. Before hiring a professional, comparison shop to get the best price.
However, if you want to sell your property fast in its as-is condition, contact a cash home buyer. We buy houses Tennessee residents can trust, so call us today.