Will selling cost you money? Many people list their house, not taking into account what it will actually cost them. There are fees and expenses you should be aware of before you list with an agent. In our latest post, we will let you know what costs to expect when selling a home in Killeen!
Have you decided to sell your house in Killeen? There are many things to consider before you decide how to sell! Keep in mind, listing your house will cost you money both up-front and once the property closes. You must factor this in when pricing your house and deciding who you want to work with.
Studies show that the average amount it takes to sell a house in the US is $15,200! That’s a lot of money! Keep in mind, that number varies widely based on where you live and the price of your home. What we find when we sell our remodels on the open market is a cost of about 12 percent of the purchase price goes to all of the expenses listed below. In other words, $12,000 out of every $100,000 goes to expenses. It adds up!
Will Selling Cost You Money in Killeen?
Agent Commissions – Commissions will typically run about 6% of the final sale price of the home. You will know the agent’s cut when you sign your listing agreement. While this money isn’t paid upfront, it is deducted from the amount you walk away with. Keep this in mind when pricing your home and adjust if you can, although typically the market in Killeen is capped so there’s not a ton of wiggle room upwards. Here is some more info on agents vs investors
Agent Fees – Depending on the agency, there might be additional fees charged throughout the selling process. Some agents will pass on marketing and listing fees directly to their clients. Make sure you know what’s included and what you will have to pay for when all is said and done. This is pretty rare though and usually only comes in to play if you need to break a contract.
Closing Costs – Closing costs include many items that are paid at the closing table. These include transfer fees, title insurance, title search fees, recording fees, transfer taxes, appraisal costs, discount points, credit report fees and more. Expect to pay about 2% of the final sale price in closing costs. This can increase if there are additional considerations that need legal help and contracts. For instance, if there are other heirs on an inherited property several documents will need to be drawn up, signed and submitted to the county to clear the title which adds about $500 to $1000 to the transaction.
Taxes – When you list your home for sale, you are responsible for the property taxes, utilities and homeowners insurance up until the day of closing. These amounts can add up to thousands should it take a few months for the property to sell and close. Once you decide to sell, the sooner it happens, the better! Also, be aware that you will pay any taxes at closing out of your proceeds, even if you have been paying them in to escrow. The escrow gets refunded later so you do get the money back.
Preparing Your House for The Market – There is a lot of energy, time and money that go into getting a house ready to sell. There are repairs to make, walls to paint and carpets to clean. You will want to remove personal belongings and stage the home for selling. Contractors aren’t cheap and you definitely want to make sure the work being done is of reasonable quality. You should also clean up the yard but also consider some new landscaping to bring more curb appeal to the property, possibly professional photos as well depending on the homes price point.
Inspections – While it certainly isn’t required, more and more sellers are paying to have their home’s inspected before listing them. This will cost approximately $300 and up. By doing an inspection before you list, you will be able to address any issues with the home before thy pop up in your buyer’s inspection. This will also give you negotiating power during the selling process.
Storage and Moving – While moving isn’t technically a selling cost, it is a large expense you will have to make once the house closes (if you haven’t done so already.) Whether you hire movers or do it yourself, moving can get expensive! How far are you going? Will you need a truck and movers? Or pizza to bride your friends? You will also want to consider storage costs if you are living in the home while waiting for it to sell. Packing up unnecessary items ahead of time will make the house look nicer and give you an edge when it’s time to move. Most buyers prefer to imagine their own belongings in a property, not yours.
Of course, there are other options if you want to sell my house fast for cash so give us a shout if you would like to discuss options for divorce, foreclosure, inherited properties and pretty much anything else. We can help you decide if a cash offer is right for you or connect you with our awesome broker if that turns out to be the best solution.