When you consider how to sell your house, whether it’s by yourself, or through an agent or selling it directly to a cash buyer, often people don’t stop to consider all of the fees and costs involved in the home selling process. You’re probably thinking I know about the real estate agent commission fee but that’s just one of many fees that you may have to pay along the way.
I’ll be honest, if you do decide to sell your house with a real estate agent, expect to pay 8 and 10 percent of the home’s overall sale price in closing costs. And if you sell the house yourself, you’re still looking at lots of costs. The only way to really avoid all of those closing costs is to sell your house to a cash buyer that will buy it “as-is.” These companies typically pay for all the closing costs.
So if you’re planning on selling your home in Memphis, Tennessee on the market, I’ve put together a list down below of all the potential costs that you might run into. You might not have to pay all of them, but it’d be wise to consider them all and plan for it. Nothing is worse than getting to the closing table and finding out that you’re going to be paying thousands in closing costs. Don’t let it happen to you, keep reading below for potential costs you’ll have to plan for
How Much Does it Cost to Sell a House in Memphis?
Before you even consider listing your house on the market, do your own home inspection and look for what needs to be repaired. You’re going to have to make sure it’s in the best condition possible to insure potential buyers will want to make offers. Most people think their house is in good shape, you have to put yourself in the shoes of the end buyer and make improvements that they would deem valuable.
Staging The House
While you may love the design and style of your house, it might not make the most sense when trying to impress potential buyers. Consider hiring a home staging company. They can help you figure out the difference; they make the house look as appealing as possible for the most people. So that means everything from rearranging furniture to bringing in new furniture to altering your home decorations. Costs involved often range between $2,000 to $4,000.
Do some Landscaping
Preparing your house to be listed and getting it in good condition isn’t only about making sure the inside looks great. It also means making sure the exterior looks equally good. Curb appeal is absolutely critical when you’re listing on the open market because you never know when a potential buyer might stop by or drive past. This means you’re going to want to make sure the lawn is mowed, the garden looks alive and fresh, and there’s plenty of colors. I’d also recommend painting, doing some new landscaping, and even putting up a new fence (or repainting the current one). Professionals will almost always be the better route then doing it yourself but of course, that means more costs. Depending on who you hire, you’re looking at anywhere from a few hundred and as much as a few thousand dollars to make your home look pristine
Get Repairs Done
Even if you’ve maintained your house well over the years, chances are that something is in need of repair. You can put off repairs while you live there but buyers considering whether or not to buy the house from you won’t stand for that. A pre-inspection report will identify any potential repairs or damage that you’ll need to fix or have good answers for. You may find that the repairs you need to make are simple but you might also find out about major damage you didn’t know about, such as mold or water issues. The pre-inspection will cost a few hundred dollars but that doesn’t include whatever you’ll have to put into potential repairs.
Listing the House
You’ve paid the costs upfront that was needed in order to prepare your house for listing. You’ve now got the house on the open market and you’re starting to see some offers come in. That’s great but the bad news is that there are plenty more costs still ahead.
Real Estate Agent Commission Cost
Let’s assume that you aren’t an agent yourself then you’d likely be represented by a real estate agent or realtor in order to sell your house, they will take a commission fee for the services they provide. That fee typically ends up being around 5 or 7 percent of the final sale price, depending on where you’re located and which real estate agency you work with. So if you sell your house for $300,000, the agent will take around $15,000 to $21,000 and then split that with the buyer’s agent. I know what you’re thinking, that’s a ton of money.
You’re probably starting to think that all these costs are adding up and becoming a little too high for your liking, well you can get a competitive cash offer from a cash buyer like Glasgow Invests. Not only can you avoid all of the costs mentioned above but you get a cash offer within days that you can make a decision about. This is really helpful if your house has a ton of damage, needs lots of repairs, or is under some kind of financial stress, such as a tax lien or facing foreclosure. Glasgow Invests buys houses as-is, so you wouldn’t have to put any money into any of those problems. Plus, you get cash in your pocket and get to move on
Well seller concessions aren’t really a “cost” in the traditional sense, its often part of the negotiation when you sell your house on the market and it will cut into your profits from the eventual sale. Some of these costs include things such as splitting or covering inspection fees and title costs, waiving certain fees, lowering the sale price in order to agree to a quick sale, and more. It’s difficult to say how much these concessions will impact your bottom line but you always have to account for them when selling your house.
Finally the Closing Stage
The buyer has agreed to purchase your home, which is good news. But just because the sale is happening, that doesn’t mean you’re done with extra costs.
Closing costs vary, depending on your state and local laws, but almost always include insurance, appraisal, survey, credit report and title fees. Then there are issues such as loan payoffs, prepayment penalties on previous mortgages, and HOA dues.
According to Finder, a home sold in Tennessee between $200,000 and $300,000 is likely to require anywhere from $2,4967.67 to $5,618 in closing costs.
If all of these costs sound like too much and you need to sell your home quickly, consider selling your house to a direct cash buyer like Glasgow Invests. You’ll avoid paying most of these costs involved in selling a house on the market and you’ll get a cash offer right away. If you’re interested, contact Glasgow Invests today.