What is the Cost of Selling a House?

Selling a house is one of the most complicated and stressful experiences that consumers will have to go through, but how much does it cost to sell a house?

There’s no set definitive cost for selling a house fast as it is a nuanced experience with loads of variables. But let’s get through some basic averages. 

Basic costs associated with selling a home

According to The Statist, average commission rates for real estate agents in the United States between 1992 and 2019 fluctuated between 5 – 6%. This rate can also vary when it comes to a more focused take on towns, cities, counties, and states. If you’re looking at selling your home without a realtor, you can reduce this commission cost.

But selling your home without a realtor can be a challenge, though. There are certain requirements that need to be met contractually when selling a home which you should always be aware of. Again, these requirements vary depending on where you live. It should also be mentioned that you might need to complete some renovation tasks. 

Renovations can be costly also, and start to add up quickly. Other costs include marketing and moving expenses. 

Other factors to consider are whether you’ll be able to locate a buyer for your property, and what the cost of sitting on a property for a lengthy period might be. What most sellers are looking for is to sell their house fast and hassle-free. 

But let’s get into the details about the cost of selling a house.

Cost of real estate fees for seller

Realtors work by commission. They need to sell your home before being paid. But when you’re talking about a sale in the hundreds of thousands of dollars, a commission of 5 – 6% turns into a large amount.

This is one of the largest real estate selling fees to be dealt with. While you can sell your home on your own without a realtor, if you use a realtor,  what you’re paying for is:

• Local real estate knowledge;
• A network of potential buyers;
• And good tips and insights for selling properties.
   

But if you do decide to go it on your own, how much does it cost to sell a house by an owner?

There is a surprising amount to consider, actually. And you might come back to thinking, “Those real estate fees for the seller aren't that bad.” 

How much does it cost to sell a house? Consider the prep costs 

No one is going to take a home as-is. If they do, they’re most likely House Buyers of America. So, before listing it yourself, it might be wise to go through the property, listing all the issues that need to be addressed. 

These costs can be divided into subsections. All of them need to be addressed before you can sell. 

Staging costs of selling a home

Before inviting any new potential buyers through the front door, make sure that the home looks like it is worth the price tag. Make sure that you accentuate the best features of your house. This is the art of staging. Rearranging furniture and décor to make your home more visually appealing.  You can hire a professional stager to help you rearrange your home, but you can also do this yourself. 

For those attempting to DIY, we strongly suggest reading up about staging and best practices. Then, start considering what extras and services you want. 

You might want to invest in:

• New furniture 
• Light fixtures 
• Curtains
• And other decorative accessories

Another cost to consider is a deep cleaning service to get into those dirty corners, or if you’re not willing to splash out on cleaners, we’d suggest renting a deep cleaning steamer. Making sure your home looks good means you’ll be able to impress more potential buyers. 

Landscaping Costs

If you own a garden, you might want to consider giving it a once over. The outside of your home is as important as the interior, in some regards. After all, it is the first thing buyers see when climbing out of their vehicle. 

Curb appeal can attract potential buyers from just passing through a neighborhood to knocking on your door with an offer. Landscaping costs is just one of those real estate fees for sellers to deal with. But we’d suggest hiring landscapers to maintain the garden. As it is labor-intensive with all the: 

• mulching 
• pruning 
• planting 
• weeding 
• lawn cutting 
• and fertilizing 

For the avid gardener, this isn’t an issue. But for those without green fingers, it’s not ideal. 

Home repairs and maintenance 

Homes that show they need repair or constant maintenance are always difficult to sell. It’s one of the major reasons why potential home sales fall through at the closing stage. Making sure that you’ve selected the best home improvement action can be tricky.

But these costs, once again, can vary. Most contractors will be more than happy to provide comprehensive quotes for certain jobs. Be warned that most home improvements won’t equal an automatic return on your investment. Bearing this in mind, make sure to make a calculation about how much you’re willing to lose. 

Also, make sure to gather multiple quotes.

Home improvements

We’d suggest only undergoing major home improvements if you’re planning to sell in a few months, or years. If you’re looking for a quick house sale, you won’t be able to reap the majority of your costs back.

This being said, you can be clever with your selection. The correct project can help you recoup large amounts back from the investment. A word of advice, this is not the time to trial and error larger projects. 

According to Remodeling’s National Data Report on Cost Vs Value, the best return on value spent on remodeling is to install Manufactured Stone Veneer which boasts 95.6% of the investment recouped, nationally.

Now that the physical work has been dealt with, it’s time for the art of the deal. 

How much does it cost to sell a house, with all the paperwork costs?

If you are selling your home without a realtor, you will need to set your own house price. Negotiating house prices is stressful. What you’re hoping for is a buyer with cash in hand, like House Buyers of America. But not many Americans have access to a sizable lump of cash to purchase a house, and when these individuals do have the cash, get ready to negotiate. 

After all, every cent is theirs and they’re not going to let go of their hard-earned dollars. Also, cash is a bargaining card, which allows them to dictate the rules of the sale. As the seller, you’re most likely going to have to discuss details and contingencies if the bank is involved. 

Discussions and middle ground 

While your home might be the absolute perfect fit for someone else, that fit might still need some adjustments. These adjustments are concessions. You might need to agree to pay for certain costs before the buyer enters into the deal. This can be down to a number of reasons, one of the most likely causes would be if your home’s appraisal is lower than the offer on the table. 

It could also be due to the fact that the buyer can’t access enough capital to cover the closing costs, or if they want to retain some cash on hand to address issues around the home. This being said, often there is a limit to the amount buyers can request with concessions. Conventional loans allow for concessions between 3% – 9% on the loan, this is also related to how much of the down payment the buyer has been able to make.

And for the Federal Housing Administration concessions are capped at around 6% and for the Department of Veterans Affairs, that number is around 4%. 

How much do the closing costs come in at? 

Closing costs are made up of a few fees. Some of these costs could be:

• Property taxes
• Attorneys’ fees 
• Recording fees
• Transfer tax
• And the outstanding amount on the mortgage. 

Let’s talk about the two costs you’re most likely going to address that doesn’t include lawyer’s fees. 

Transfer taxes

Transfer taxes apply when sellers change the title of the property to the buyer. These transfer taxes can vary from state-to-state and can take place at state, county, and municipal levels. 

Mortgage payoff

Before you can move on to the next property, you need to wrap up your mortgage if you have one. If there is some pro-rata interest, and you’ve not been paying it, you might need to pay the difference out of your own pocket. If you’ve paid up your mortgage in advance, there may be pay prepayment penalties involved. But once this is wrapped up, it’s time to start packing. Movers are also costly and should be factored into your budget. 

And finally, it’s worth mentioning that there are normally transition and overlapping costs as well. Selling a home is a complicated and expensive process. If you’re looking for the best method to sell your home fast and hassle-free in Maryland, Virginia house buyers, or Washington DC, sell it to us for cash! 

Sell your home to House Buyers of America!

House Buyers of America prides itself on being the hassle-free alternative to having to deal with all those additional costs, as we buy houses for cash.

We can offer you cash for your house where we’ll make you a fair offer. You’ll receive that cash offer in a few minutes, and all you’ll need to do is arrange a time for us to come by and finalize the paperwork, and you can have the cash in your account in just days. At House Buyers of America, we buy houses in Washington DC, Maryland, and Virginia house buyers, and we have the experience to offer you a competitive price for your home. 

Call us today at 855-659-3289 or use our online form to get started! We’ll get you a cash offer within 10 minutes and walk you through the process of selling your house for cash.