Many homeowners, when selling property, don’t anticipate how expensive it can all become. Even when you can expect to get the value of your home back upon its sale, there are many surprise fees and costs to consider. Closing fees for example can amount to up to 5% of your home’s selling price, which is a considerable amount. Thankfully, there are ways you can reduce some of the costs tied to selling your home. Let’s talk about how to minimize fees when selling, especially closing costs.
How much does it cost to sell a home?
Realtor Commissions – 6% of your home’s sale price
One of the main expenses tied to selling your home will most likely be the realtors’ commission fee. Your realtor will take a cut of your earnings post-sale. The standard commission typically goes for around 6% of your home’s sale price, which is a considerable chunk of money that will be chipped off what you walk away with.
Repairs and Staging – $4,000–18,500 and $450–1,800
In 2019, 73% of sellers made at least one improvement in their home before selling it. Even if your home is brand new and in immaculate condition, you’ll probably have to make a few repairs to make it attractive to buyers. You’ll also have to prepare the staging of your home which can cost you quite a bit of money: professional stagers usually consider everything from delicious smells emanating from the home you want to sell and fresh flowers sitting out on countertops, to make potential buyers feel like they’re at home already.
How much do closing fees cost?
According to Zillow.com, closing costs in a traditional sale can reach up to 8% to 10% of a home’s closing price. That means that if your home is being sold for $244,000, the median U.S. home value as of December 2019, you could end up paying $19,000-$24,000 on closing costs only. These closing costs are made up of different expenses, such as:
- Transfer tax
- Title insurance
- Prorated property taxes
- HOA fees
- Credits toward closing costs
- Seller attorney fees
- Any escrowed money promised to the buyer
These are the traditional closing costs that you will be responsible for as a seller. However, you may even have to take on some of the buyer’s expenses, according to what has been negotiated.
How to pay less closing costs
One of the main tactics to minimize closing fees when selling your home is to get rid of your traditional realtor. In this day and age, when information is so readily available, there is no need to have someone help you handle a sale and take 6% of your home’s value. You could very well be doing it yourself!
Ask your buyer to take on the closing costs. Here at Wasy Homes, we are passionate about helping homeowners reduce their selling costs. We can buy your home in cash and pay the closing costs for you. We don’t take any commission, so you’ll be able to get the total sale price of your home back. Contact us if you’re looking to sell your home and save on realtor fees and closing costs!