Everything You need to know about the cost to Sell Your Home!

Brookings Home Team - How Much Does It Cost to Sell Your Home

As the old saying goes, you have to spend money to make money, and this is especially true in the real estate market. A majority of homeowners believe that when the time comes to sell their house it’s all profits and no expenses, but that isn’t always the case.

In fact, homeowners should be prepared to spend a few thousand dollars when selling their homes. On average, it costs between 10-15% of the sale price to sell a house. That means that on a $300,000 house, sellers can expect selling costs anywhere from $30,000 to $45,000.

Why is selling a house so costly and what can homeowners do to maximize their profits? Let the real estate experts at Brookings Home Team break it down with an in-depth look at how much it costs to sell your home.

Expenses of Selling a House in Brookings, SD

It’s understandable that selling a house costs money. There are several people and entities involved and each one will require payment for their efforts. But how does the cost climb into several thousand dollars so quickly? Let’s examine some common house-selling expenses.

Yard and Landscaping

Your home’s curb appeal has a huge impact on buyers. After all, their first impression is already formed before they even walk through the front door.

It’s hard to quantify how much of an impact it has, but data suggests that homes with an inviting exterior sell for between 7% and 10% more than a similar home with a less inviting exterior.

For this reason, sellers should take their landscaping into consideration. Extreme measures like installing new plants or hardscapes usually aren’t necessary.

However, simple maintenance tasks like cleaning up fallen leaves or mowing the grass go a long way towards perking up the exterior.

Organizing, Cleaning, Decluttering

It’s possible to sell a dirty house but sellers can’t expect to get top dollar for it. At the very least, sellers should thoroughly clean and declutter their homes before placing them on the market.

Try to remove personal items as much as possible. Buyers need to be able to envision themselves living in the home. It’s hard to do that with other people’s little kids or furry friends frolicking all over the walls.

Excess items make a home feel crowded so many homeowners rent a storage unit to store items they don’t use every day. To save money, some homeowners may choose to do all this work themselves.

However, it is easier and more efficient to hire a cleaning company — especially for those short on time. Some may even contract a cleaning company to keep the home in tiptop shape so it is always ready for showings.

Home Improvements and Repairs

There is no perfect home on the face of the earth. There are so many systems and moving parts in modern-day homes that even brand new homes can benefit from some repairs.

The budget for these repairs will vary widely. Some homes may require a $15,000 new roof whereas others will only need minor DIY repairs that can be done with a few items from the hardware store.

Older homes may have undesirable features that will make it harder to sell the house. In this case, it can be beneficial to make improvements even if the ROI is less than 100%.

If most buyers are likely to pass over a listing because of this undesirable feature, it’s a good idea to put the money into updating it. This is on a case-by-case basis and getting professional advice is recommended.

Marketing Expenses

No one can buy a home they’ve never heard about. Marketing is a key part of being able to sell a house quickly and for top dollar.

To that end, many sellers hire professional photographers to capture high-quality images that will portray their homes in the best light. Some may even invest in drone/aerial images or video to help their listings jump out at the right buyers.

To take things one step further, some sellers also invest in home staging services before bringing in the photographer. Professionally staged homes can make a huge difference in buyer perception, which is ultimately what the sale price is based on.

Commission for Using a REALTOR®

REALTOR commission is usually the largest chunk of a seller’s closing costs. The industry standard is between 5% and 6% and the seller is typically responsible for all of it.

The good news is that sellers usually don’t have to come up with the money for this out of pocket. This expense is written into the real estate contract and deducted from the profit the seller receives from the sale.

Additional Closing Costs

There are various other closing costs that may be involved in a sale. These include:

  • Attorney Fees
  • Capital Gains Taxes
  • Escrow Fees
  • HOA Fees
  • Property taxes
  • Title insurance
  • Transfer taxes

Most of these costs are covered by the money from the sale. However, if the seller won’t be gaining much cash from the sale (low equity, house underwater, etc.), they must be aware of these expenses.

Expenses of Moving Into Your New Home

The costs don’t stop once the house sells. Sellers will also have moving expenses to worry about — and this expense usually pops up before they get the money from the sale. The seller may need to rent a house or hotel room while they are between homes. Plus, it may be necessary to place some items in storage.

Selling Your House Is An Investment

The main takeaway from all this is to realize that selling a house takes time and money. Unless you already have a buyer (friend, family member, etc.) it generally isn’t a good idea to try to sell your home yourself. You will end up doing a whole lot of work and probably still leave money on the table in the process.

If you want to know how to sell your home to make more money, hire an experienced, local real estate specialist from Brookings Home Team who can tell you exactly what you need to do.

Reach out today to learn more via our online contact form or call (605) 691-3023 to speak with a Brookings REALTOR.