Selling a home can be expensive. But many people don’t realize just how pricey it can get.
Everyone knows about the commission for the real estate agent (typically 3 – 6%) and closing costs, but there are hidden costs that can pop up, and they can get hefty.
Here are four hidden costs of selling your home the traditional way you need to consider.
After inspection, the lender or incoming buyer will likely request repairs. Costs for things like roof certifications or repairs, replacing the plumbing, or having to tent the home for termite extermination can veer up into the thousands.
- Commission for The Buyer’s Agent
During a retail real estate transaction, the seller is always responsible for paying the commissions for both the Listing Agent (the agent representing the seller) and the Selling Agent (the agent representing the buyer.) Even if you have a friend or family member who will sell your house for you at no cost, you are still responsible for the paying the agent representing the buyer, which is about 3% of the gross sales price of the house.
- Seller Concessions
Seller concessions are when the home buyer asks the seller to help pay for costs associated with their purchase, which may mean providing down payment assistance or contributing towards their mortgage application fees or closing costs. It’s very common, and one of the most expensive costs of selling a home.
- Holding Costs
If it takes awhile for a real estate agent to sell your house (the typical time is three months to a year), things like mortgage payments, insurance, HOA fees, property taxes, and utilities will really start to pile up.
If you’re not in a hurry to sell and have a house that needs very little repairs, it may be worth going the traditional route and listing with an agent.
But if you’re looking for an alternative, it may make sense to sell your home for cash to a professional home buyer. They can typically close in 7 – 30 days, they handle all the repairs, and you can avoid all the previously mentioned fees. Plus, you’ll have cash in your pocket.
Want more information on how selling your house for cash works? Click here to learn more about the process.