To know how much you will make when you sell your home in Arizona, you have to consider all the costs involved in the process.
A shortage of homes for sale gives sellers the advantage in most housing markets, but many home sellers don’t realize that offloading their homes still costs money. Some expenses are negotiable, but sellers should expect to foot all or part of the bill for the various costs to sell a house.
How much does it cost to sell a house?
Real estate commissions and other fees can consume up to 10 percent of the sale price of a home. Here’s an overview of all of the costs sellers should prepare for:
Real estate commission
The real estate commission is usually the biggest fee a seller pays — 5 percent to 6 percent of the sale price. If you sell your house for $250,000, say, you could end up paying $15,000 in commissions.
The commission is split between the seller’s real estate agent and the buyer’s agent. In the majority (77 percent) of cases, the seller bears this cost, according to the National Association of Realtors (NAR).
You may be able to negotiate a lower commission, however. Real estate agents are more likely to accept a lower rate when the home is expected to sell quickly, the local market is strong or the home price is relatively high.
Many homeowners try to avoid paying commission by listing their home as for-sale-by-owner (FSBO). If you do that, be prepared to assume the duties of a real estate agent, including showing the place to prospective buyers, negotiating, hiring a lawyer to draw up the contract, and taking care of the transfer of title. Just 11 percent of home sales were FSBO sales in the last year, according to NAR.
If you’re thinking about selling your home, it’s likely there are things you could do to enhance the appeal of your place and potentially raise its value. If you’ve been putting off sprucing up the exterior of your property, painting the inside or repairing a staircase or a leaky faucet, now’s the time to make those changes.
Also, if the buyer’s home inspector finds problems, such as a damaged roof or bad plumbing, you might have to pay to fix those issues in order to close the deal. Big repairs can set you back financially, so be prepared for them before you decide to sell, especially if you expect problems will be revealed during a home inspection.
Pre-sale home inspection
A presale home inspection is strictly optional, and it could cost around $400 or more. Some sellers make the investment because they want to find out about any structural or mechanical problems with the house before a potential buyer comes in with his or her home inspector.
Getting a pre-sale inspection allows you to make major repairs ahead of time, removing any possibility of a buyer demanding them later or asking you to lower the price.
Discuss with your real estate agent whether a pre-sale home inspection is recommended. Keep in mind that if your inspection reveals material defects with your home, you’ll have a responsibility to disclose them to a buyer, depending on your state’s laws for disclosure requirements.
Buyers like to envision what a house could look like after they move in, so if you’re a seller, it’s worthwhile to spring for cosmetic repairs, like fresh, neutral paint and new flooring. Improving curb appeal with fresh plants or flowers can also really attract buyers without costing too much.
Twenty-eight percent of seller’s agents said they staged their homes before listing, according to NAR. While you can do some staging tactics yourself, hiring a professional to stage your home can pay off. Stagers do what’s necessary to enhance a home’s best features while minimizing its worst attributes. They rearrange furniture and accessories and declutter and depersonalize the home. They may even repurpose a room in a way you wouldn’t have imagined.
The cost of a professional stager varies according to the size of the home, the extent of the work, the length of time the house is on the market and other factors. Expect to spend several hundred dollars, at minimum.
If you plan to move out before you sell your home, you’ll want to continue to pay for water and electricity. A home without air conditioning and heat and lighting can be difficult to show to buyers. Your current bills will give you an idea of how much it will cost each month to leave on the utilities until a new buyer moves in.
If you just want to make money by selling your home in Arizona without worrying about all the costs then reach out to SellforcashAZ.