The Hidden Costs of Listing Your Home With a Real Estate Agent
It will be a grave mistake for you to sell your home without weighing your options. For example, many homeowners will jump at the opportunity to allow a real estate agent to sell their home before evaluating their options. There are many hidden costs associated with listing your house with an agent. In many instances, a direct sale is the best bet for any homeowner that would like to maximize their earnings. You should make an earnest effort to educate yourself on all scenarios before signing a legal contract with an overzealous real estate agent in your city or town.
Here are a few costs you may run into if you list your house with an agent:
Repairs
Does your home need extensive repairs? As the homeowner, it is your responsibility to disclose problems with your home to prospective buyers. This will give buyers a chance to calculate the repair costs into their offer. In some cases, prospective buyers prefer homeowners to take care of the repairs before signing a purchase agreement.
Do you have enough money to cover the repairs? If you don’t, you need to offer credit repairs to the prospective buyer. This can help solidify the deal.
Monthly Bills
You must keep the utilities on while selling your home. When you list your home, you will not know how long it will take for the agent to find a qualified buyer. It could take several months before you get a serious offer from a pre-qualified buyer. Please keep in mind that you will also have to pay property taxes and homeowners insurance while your house is on the market. These expenses will add up fast!
Commissions
Well, you should know that the agent will expect you to pay their fee (commission). This is 6% of the sales price. Besides paying a commission to the agent, you will also have to cover administrative and notary fees. Do you really want to deal with this? These fees will lower your profit at the closing table.
Appraisals
Once you sign a listing agreement with a real estate agent, an appraisal may take place. The appraisal will determine the true market value of your home. The buyer’s lender will use the appraisal to determine who much they should lend on your home. Well, the appraisal fee may be coming out of your pocket. This is another fee that will lower your profit at the closing table.
Cleaning
There’s an old saying, “The first impression is the best impression.” You must clean your home thoroughly before putting it on the market. This could run several hundred dollars if you hire a professional cleaning company. This could be difficult to cover if you’re on a tight budget. You may be tempted to taking the do-it-yourself approach, but you will be better off with hiring an experienced house cleaning company. In some cases, a real estate agent will not show your home if it’s not clean.
It costs money to list your home with an agent. This is the main reason why you should consider selling your house to a professional house buying company. You will get a fair offer and a fast closing.
Here are a few costs you may run into if you list your house with an agent:
Repairs
Does your home need extensive repairs? As the homeowner, it is your responsibility to disclose problems with your home to prospective buyers. This will give buyers a chance to calculate the repair costs into their offer. In some cases, prospective buyers prefer homeowners to take care of the repairs before signing a purchase agreement.
Do you have enough money to cover the repairs? If you don’t, you need to offer credit repairs to the prospective buyer. This can help solidify the deal.
Monthly Bills
You must keep the utilities on while selling your home. When you list your home, you will not know how long it will take for the agent to find a qualified buyer. It could take several months before you get a serious offer from a pre-qualified buyer. Please keep in mind that you will also have to pay property taxes and homeowners insurance while your house is on the market. These expenses will add up fast!
Commissions
Well, you should know that the agent will expect you to pay their fee (commission). This is 6% of the sales price. Besides paying a commission to the agent, you will also have to cover administrative and notary fees. Do you really want to deal with this? These fees will lower your profit at the closing table.
Appraisals
Once you sign a listing agreement with a real estate agent, an appraisal may take place. The appraisal will determine the true market value of your home. The buyer’s lender will use the appraisal to determine who much they should lend on your home. Well, the appraisal fee may be coming out of your pocket. This is another fee that will lower your profit at the closing table.
Cleaning
There’s an old saying, “The first impression is the best impression.” You must clean your home thoroughly before putting it on the market. This could run several hundred dollars if you hire a professional cleaning company. This could be difficult to cover if you’re on a tight budget. You may be tempted to taking the do-it-yourself approach, but you will be better off with hiring an experienced house cleaning company. In some cases, a real estate agent will not show your home if it’s not clean.
It costs money to list your home with an agent. This is the main reason why you should consider selling your house to a professional house buying company. You will get a fair offer and a fast closing.