When you consider how to sell your house, whether it’s through a real estate agent, selling it yourself, or selling it to a direct cash buyer like Fair Cash Deal, you don’t often stop to consider all of the fees and costs involved in the home-selling processes. You’ve probably thought about the real estate agent commission fee but that’s just the tip of the iceberg in a process that may involve many more costs along the way.
In fact, if you do decide to sell your house with a real estate agent, the total costs range between 8 and 10 percent of the home’s overall sale price. And if you sell the house yourself, you’re still looking at lots of costs. The only way to really avoid all of those costs is to sell your house to a home buying company that will buy it “as-is.”
So if you’re planning on selling your home in Memphis, Tennessee on the open market, here is a list of all the potential costs that you’ll need to consider. You might not have to pay all of them, but you’ll certainly have to consider most of them. Once you have a good idea about all the costs involved, you’ll have a much better idea of which process makes the most sense for your needs.
How Much Does it Cost to Sell a House in Memphis?
Before you even list your house on the market, you’re going to have to make sure it’s in the best condition possible to make sure potential buyers will want to make offers. While many people think their house is in good shape, you have to think about how you could make improvements to make your house the best it can be in the eyes of buyers.
While your personal style works for you, it might not make the most sense when trying to create the best visuals and feeling of home for buyers. A home staging company can help you figure out the difference. A stager makes your house look as appealing as possible for the widest audience. That means everything from rearranging furniture to bringing in new furniture to altering your home decor. Costs involved often range between $2,000 to $3,500. And while that sounds like a lot of money to spend, a recent National Association of Realtors (NAR) survey says 50 percent of agents think it has a real effect on getting you a higher sale price.
Getting your house ready to sell isn’t only about making sure the inside looks good. It also means making sure the exteriors look as good as possible as well. Curb appeal is absolutely critical when you’re listed on the open market because you never know when a potential buyer might stop by or drive past. This means you’re going to want to make sure the lawn is mowed, the garden looks fresh, and there’s plenty of colors. You might also want to consider painting, doing some new landscaping, and even putting up a new fence (or repainting the current one). Professionals will almost always do a better job on these kinds of things than you can, but of course, that means more costs. Depending on who you hire, you’re looking at anywhere from a few hundred and as much as a few thousand dollars to make your home sparkle.
Even if you’ve maintained your house well, chances are that something is in need of repair. You can put off repairs and damage while you live there in order to deal with it later, but that won’t fly for buyers considering whether or not to buy the house from you. A pre-inspection report will identify any potential repairs or damage that you’ll need to fix or have good answers for. You may find that the repairs you need to make are simple but you might also find out about major damage you didn’t know about, such as mold or water issues. The pre-inspection will cost a few hundred dollars but that doesn’t include whatever you’ll have to put into potential repairs.
The Listing Stage
You’ve paid the upfront costs needed in order to prepare your house for listing. You’re on the open market and you’re starting to see some offers come in. That’s good but the bad news is that there are plenty more costs still ahead.
Agent Commission Cost
Assuming you are represented by a real estate agent or Realtor in order to sell your house, they will take a commission fee for services rendered. That fee usually ends up being around 5 or 6 percent of the final sale price, depending on where you live and which agency you work with. So if you sell your house for $400,000, the agent will take around $20,000 to $24,000 and then split that with the buyer’s agent. That’s a pretty big chunk of money, even if your eventual sale price ends up being less than that.
If you’re starting to think that all these costs are adding up and getting a little too high, you can ask for a competitive cash offer from a cash buyer like Fair Cash Deal. Not only do you avoid all of the costs mentioned above but you get a cash offer within days that you can make a decision about. This is especially helpful if your house has a ton of damage, needs lots of repairs, or is under some kind of financial stress, such as a tax lien or facing foreclosure. Fair Cash Deal buys houses as-is, so you wouldn’t have to put any money into any of those problems. Plus, you get cash in your pocket and get to move on to your next home.
While seller concessions aren’t a “cost” in the traditional sense, they are often part of the negotiation when you sell your house on the market and will cut into your profits from the eventual sale. They ran the gamut but include things such as splitting or covering inspection fees and title costs, waiving certain fees, lowering the price in order to agree to a quick sale, and more. It’s hard to say how much these concessions will impact your bottom line but you always have to account for them when selling your house this way, especially if it’s a buyers market or there are issues with your home.
The Closing Stage
The buy has agreed to purchase your home, which is good news. But just because the sale is happening, that doesn’t mean you’re done with extra costs.
Closing costs vary, depending on state and local laws, but almost always include insurance fees, appraisal fees, survey fees, credit report fees, transfer taxes, and title fees. Then there are issues such as loan payoffs, prepayment penalties on previous mortgages, and HOA dues, amongst others.
According to Finder, a home sold in Tennessee between $200,000 and $300,000 is likely to require anywhere from $2,498.67 to $5,622 in closing costs.
If all of these costs sound like too much and you need to sell your home quickly, consider selling your house to a direct cash buyer like Fair Cash Deal. You’ll avoid paying most of these costs involved in selling a house on the market and you’ll get a cash offer right away. If you’re interested, contact Fair Cash Deal today.