Selling your home can be exciting, especially if you’re moving somewhere new. Most people can get a little too caught up with seeing dollar signs in their eyes, and fail to consider how much they’ll actually have to spend to sell their home. Home sellers tend to pay their listing agent around 6% of the price of their home, but this can vary depending on who you work with. So if you were to sell your home for $250,000, they will get around $15,000 of the sale. It’s best not to start mentally spending the money you’ve earned until you’ve taken all of these things into consideration.
What Is Real Estate Agent Commision?
Providing you’ve chosen a great real estate agent, it’s highly unlikely you’re getting ripped off. However, a lot of agents don’t explain why they ask for what they ask for. Many agents don’t have a salary, so this money goes for the time they spent marketing the house, things like photographs, signs, and paying for the sites that the home was listed on. If your house doesn’t sell, then the agent doesn’t get paid either. They lose out on costs and don’t get paid for the time they spent on it. It can be a rough ride for them!
Closing Costs For Sellers
It’s also worth thinking about closing costs for sellers. Around 2% of the money made on your home will usually go on this. They are usually fixed costs that include taxes, expenses, notary fees, and things like this.
Going For Reinvention or Renovation
Something you’ll need to consider is whether you’re going to simply show your home in its best light, or renovate it in an attempt to make more money. Hiring a remodeling contractor can be a good choice if your home isn’t in the best condition, but you need to think about the things that are really worth your while. Let’s say you want to improve the look of your backyard by adding an outdoor deck. This can be attractive, as it creates a great place to entertain and makes the place look more attractive. It’s fairly cheap to complete, averaging at just over $10,000. However, you may only see an 82% return on your investment.
Selling Your Home Yourself
With these things in mind, some people decide that they should sell their home themselves in order to sell money. However, you’ll still need to pay the buyer’s agent’s brokerage fee if you do this. You might think that you’ll save money, but when you look at the situation objectively, it’s unlikely you’re going to save any money doing this. It’ll also be more stressful, take more time, and you may even get a lower price for your home. You likely have limitations when it comes to your expertise, so think about it carefully before you decide to sell your home yourself. This will be one of the biggest things you sell in your life, so it’s not worth cutting corners in an attempt to save a miniscule amount of money, if any.
Hopefully, you now have some ideas about how you should be selling your home and what you really need to spend to get it done properly!