So, I’ll be totally honest, when we buy houses there is a discount involved that basically accounts for the costs it will take us to hold, repair and sell a house, as well as a bit for profit. However, I think that most people don’t realize how many of those costs would exist even with a traditional sale and in many cases may be pretty comparable to what we do. The real reality is that what we do allows people to move on quickly and not deal with the headaches. Listing your home isn’t free. There are costs, chores and a lot of work that goes into getting your home ready for the market. Before you list your home, think about the time, energy and money that go into it. If you have a direct buyer, with a great offer, it is often preferred to the hassle and out of pocket costs of listing. What it REALLY costs to sell your home in Killeen.
Commissions, Staging & Yard Work, Oh My!
First things first, your house either needs to be in pretty good shape or you will need to discount a listing pretty heavily. Honestly, when we buy houses most of them need a fair amount of work and that is where I think we offer a ton of value. When we close on a house you walk away with the cash and we get to work. You don’t have to clean or pick up a hammer, much less try to find someone to do the work. The average renovation we do is about $30,000 our cost so imaging the time, money and headaches it would cost you!
This will vary if you are living in the house or not but for the sake of this post I will assume you are living out of state, as most of our clients are.
When someone out of state is trying to sell a house, there are several big costs that they may need to consider. One of the most significant holding costs is mortgage payments. If the homeowner still has a mortgage on the property, they will need to continue making payments until the property is sold. Depending on the size of the mortgage and the length of time it takes to sell the property, these payments can add up to a significant expense over time. Of course you are paying insurance in there as well!
Another common holding cost for a house someone out of state is trying to sell is property taxes. If the homeowner is not living in the property, they are likely paying higher taxes than if they were living there as their primary residence.
Other potential holding costs may include insurance, utilities, and maintenance expenses, depending on the specific circumstances of the property and the homeowner’s needs.
Commissions and closing costs
This is the biggie. Selling your home through an agent entitles them to a commission. Think 6% of your sale price. Three percent to your agent and three to the buyers agent. Technically this is negotiable but in practice it’s pretty set in stone. We definitely don’t recommend a “flat rate” broker or similar… you get what you pay for!
This fee alone can add up to thousands of dollars and should be factored into the homeowner’s selling expenses.
Another significant closing cost for selling a house in Killeen, Texas, is the title company fee. The title company is responsible for verifying the property’s ownership and ensuring there are no liens or claims against it. The fee for these services can range from several hundred to several thousand dollars, depending on the complexity of the sale and the title company’s fees. You’ll also be paying for a title policy, so add about $1,500 to all of the above
Finally, there are a bunch of little things. Typically there is a home warranty ($750), a survey ($600) plus anything the buyer may negotiate (Maybe nothing but often a few thousand.