The biggest cost that’s involved in the selling process of a house is the real estate agent fee. Typically, this ranges from 4% to 6%. If your house covers a land of more than 1,000 square feet then commission fee might jump from 6% to 10%.
This article does not cover hypothetical figures but rather the costs of a home sale. The one thing you should be focused on is making a profit. They say, “The more you put in, the bigger will be the reward.” This does not stand true for a home sale. If you go all out on the repairs and renovations without consulting with your Downtown Orlando realtor and knowing about the comps, you stand to lose more in the negotiations.
Let’s have a look at the areas where your money will go during your home’s sale:
To find out what repairs you will have to tackle, get a home inspection. In some cases, the buyer gets a separate home inspection to make sure that you have not lied on the report. A home inspection costs around $200.
When it comes to making repairs, you have four options:
- Fix everything
- Fix things that are obvious
- Go for just the big repairs
- Consult the buyer and see what repairs he asks for after the home inspection
For example, if you are planning to get a new roof to make the exterior more aesthetically appealing, then you will be paying around $5,000. Make a list of all the necessary and cosmetic repairs, and then find out how much each one will cost.
Staging will cost you at least $1,200 if you are hiring a professional. If you have the time and aesthetic eye, you can stage the house yourself. You will find plenty of blogs online on how to stage your house without spending much. Just know this – a staged house gets sold quickly and at a 20% more profit. So you can’t skip this step.
Real Estate Agent’s Fee
As mentioned earlier, the real estate commission fee is the biggest cost in a home selling process. If your house sells for $300,000, then you will have to pay a commission fee of anywhere between $15,000 and $18,000.
While this is not necessary but if the buyer demands you present proof that the house belongs to you then you will have to get title insurance. The cost of this is between $800 and $1,000.
If you want to sweeten the deal and make sure that the buyer purchases the house, you can offer a few concessions in the deal. These might be paying for the closing cost, help with the inspection fee, lower down payment, etc. The typical concession range is from 1.5% to 2% but may vary depending on the size of the house.
Buyers are the ones responsible for the closing cost but if you are selling your house in a competitive market, you might have to take this burden. Typically, the closing cost is from 8% to 10% of the sale price.
It’s hard to tell you the exact, overall cost involved in the home selling process but if your house is selling for $300,000, then you will end up paying around $46,000 in miscellaneous costs.
Now that you know how difficult and costly it can be to sell your house, there is no room for mistake. This is why it is important that you hire a professional Winter Park realtor for your Orlando real estate. To get in touch with a real estate agent, visit Megan Dowdy Realty or call on 407-509-9279.