When you choose to sell your home through the traditional method of hiring an agent and listing on the MLS, you should be ready to pay several fees. They include realtor fees, inspection fees, staging costs, closing costs, and more. You can expect these costs to add up to 10% of the final home sales price. Home sellers shell out an average of $20,851 while selling a house. The real estate commissions take the most significant bite, whereas the home preparation can cost you an average of $2,658.
If you’re planning to sell your house on the traditional market, you need to be aware of these hidden charges so that they don’t end up blindsiding you. In this blog, let’s dig a little deeper into the actual cost of selling a house via the traditional route.
Real Estate Commissions
Real estate agency commissions make up the lion’s share of the cost of selling a house through the traditional method. These fees typically range from 3% to 6% of the final home sale price. But it can vary from agency to agency. Most real estate agents will also charge marketing fees to attract buyers to purchase your house.
If you’re dealing with a property sale, you need the help of a lawyer to make everything go smoothly. They can verify all the prepaid expenses, discharge the title and mortgage, and handle the transfer to the new buyer. You can expect to pay around $500 to $1,500 for a real estate lawyer’s service.
If you are like most homeowners who have a mortgage on your home, you need to pay a mortgage discharge fee to your lender to release the collateral hold on your home. The lender will also charge a mortgage prepayment penalty based on the number of years left on your loan and interest rate. They will work with your agent and buyer to obtain the payoff amount. You will receive the cheque for the home sale, with the amount deducted for the mortgage.
Staging and Repair Costs
Get your home spotless for showings and open houses. You need to stage your home to improve the appearance of your property. It can attract prospective buyers and generate a higher price. The staging can cost anywhere from $500 to $15,000. As a home seller, you should be ready to spend around $1,000 for home repairs if you haven’t regularly maintained your property or your home is old and outdated.
Closing costs will be your second-biggest expense behind realtor fees. The closing costs can run as much as 3% to 6% of your home’s total sales price. It can include pro-rated property taxes, title insurance fees, transfer taxes, escrow fees, and notary fees. These costs will be subtracted from the total amount you receive at closing.
Regardless of how attractive your house is, you’ll spend a few dollars on a traditional home sale. If you choose to sell your house to a professional cash home buyer in Oklahoma City, you will likely save more and enjoy a better profit. At Bricktown Home Buyers, we buy houses as-is, and you don’t need to make any repairs and renovations. We also pay the closing costs. With us, you can sell your house fast in Oklahoma City without spending a dime.