- Real Estate
Cost Of Selling A House
Cost Of Selling A House
Homeowners and potential, future homeowners all want to know the cost of selling a house. It is one of those things everybody wants to keep in mind for future reference. It helps to calculate pricing when looking at a home sale or purchase. The following are some of the elements that go into the cost of selling a house.
First, there is the commission that goes to the real estate agents. As a standard the rate is six percent of the sales price. Half of the commission goes to the realtor that lists the house for sale in the Multiple Listing Service (MLS). The second half goes to the realtor that brings the ultimate purchaser of the house. Many times a realtor will try to do both list the house and bring buyers so they can get the full six percent. This has some upside and downside. The upside is the realtor is trying even harder to sell the house. The downside is that the realtor often winds up supporting one side, leaving the other side with less than full support.
On the other hand some real estate agents just want to list the house and do nothing afterwards to sell the house. This means one needs to choose a real estate agent carefully. Ask friends, relatives, and workmates for recommendations. Just be careful they recommend someone who has done good work for them before and not just their relative or friend who happens to be a real estate agent. Everyone wants to sell my house quickly but taking the time to choose a quality real estate agent can be time well spent.
Some people try to do a For Sale By Owner, also known as a FSBO, to lower the cost of selling a house. While saving six percent may sound good, it could add to the cost of selling a house in the secondary expenses of home sales. This second cost area of selling a home is the legal stuff like title changes, fees, insurance, taxes, etc. These things are known as closing costs. Having a licensed real estate agent and agency will make help make the legal stuff go much easier. They do this everyday and have the legal paperwork already done in template format. With a FSBO, a home seller is starting from scratch and usually requires a real estate attorney, which could negate any savings from commissions.
The final cost of selling a house has to do with the marketing. People have to know that the house is for sale. There are numerous ways that can happen including listing on real estate web sites, ads in newspapers, and specialized realty magazines. Of course, few of these are free. Then one will probably want to make the house more visually appealing and definitely complete any repairs. Not only will these projects help the sale but they could also help avoid appraisals and inspections. Appraisals and inspections are another cost of selling a house that falls in the previously mentioned legal expenses category.
The above is an overview of the expenses involved in selling a home. Lowering those costs starts with knowing about them.