Ready to sell your house in Kathleen? Good! Do you know how much it will cost to sell your house? Bad. This post will explain some of the costs you may not have thought about when selling your house in Kathleen Georgia.
Many people will blindly jump into a listing agreement with a real estate agent without first considering how the process will play out. Before signing an agreement or deciding how you want to sell your house in Georgia, you should try to estimate how long it will take and what it will cost you. Yes, there are multiple ways to sell your house. Let’s look at the way everyone else does it first.
Listing with an agent (MLS)
Everyone that uses a real estate agent is going to pay at least 6% commission (5% for higher end houses). In order to sell your Kathleen house for the most money (and get the highest commission), The agent will give you a list of what to do to make your house look it’s best.
Repair Costs before you sell your Kathleen House.
No house is ready for the market without repairs unless you JUST moved in less than a month ago. There is always carpet cleaning, some paint touchups or leaky faucet that needs repair.
If you have lived in your house longer than two years, carpet and repainting the inside of your Kathleen house is a minimum requirement. There may be some facia rot, faucet leaking or hole in the wall that will need attention. Plan on around $5000 on the low end for repairs before you sell your house.
If you are already moved out (or planning to), a real estate agent may suggest you stage the house. If you move out before the house is sold, where will you put your stuff? These are preparation costs and they need to be added into your over all expense.
A basic staging of a 1500 sqft house can cost about $800 minimum. Storage units around Kathleen Ga are starting at $55/month and go up. Ching, Ching
If you decide to list your house with a real estate agent in Georgia, it should not cost extra for any marketing. That’s what you are paying them to do is market your Kathleen house.
Different agents try harder than others, so ask what kind of marketing they do and where. A lazy agent can cost you a couple extra months of mortgage payments, waiting on a buyer for your house to sell (and you will not get that money back at closing. Changes are, most of that expense is interest)
Speaking of mortgage payments…
Paying your mortgage while you wait for a buyer is going to be the biggest up-front cost of selling your Kathleen house (next to repairs). Each month your house sits on the market is another monthly payment on a house you no-longer want is pulling on your budget. This is where a professional homebuyer is worth every penny.
Agent Commissions and Costs
We mentioned this before, but let us really look at it now. Your agent’s commission will come out of your sales price at the closing table. In the middle Ga area, houses under $250K usually get changed 6% commission. If the house you are selling is over that, you can usually negotiate 5%.
The current median priced house in Kathleen is $160K. 6% of that is $9600. That is coming off the top of your closing when you sell your house. Be aware of that. Local Ibuyers (Instant buyers) don’t charge commissions.
Who is paying the closing costs of the house you are selling? That is negotiable too. If you get talked into paying the closing costs (because your receiving all the money, right?), that typical $160K house can cost from $3000-$7000 in closing costs. Banks have gone up on fees since the 2008 housing bust.
Just in commission and the lowest closing costs, that is $12,600 you will never see. Add to that, the storage unit, staging, repairs and moving expenses, the cost of selling your house is going up fast.
How much equity did you say you have in this house? Will it cover all these expenses? You may have to pay out-of-pocket to sell your Kathleen house. That’s why selling your house will an agent is usually the most expensive way to sell. It costs 15-20% of the sales price to sell a house typically.
Direct home buyers are not going to offer full price on your house, but you don’t pay all these expenses either. In reality, you can actually come out with more money in your pocket with a local IBuyer. Selling your house in days, instead of months will save you a couple mortgage payment alone.
Give us a call at 478-273-0062 for more information. Talk to you soon.