When it comes to selling a house in Twin Cities, it’s important to be aware of the costs involved at every stage of the process. Before you even list your property, there may be expenses to consider, such as repairs, upgrades, and staging. Once you’ve listed your home, you’ll need to factor in the costs of marketing and advertising, as well as any commissions or fees charged by your real estate agent.
If you receive an offer on your home, there may be additional costs to consider, such as inspection fees, appraisal fees, and any necessary repairs requested by the buyer. And when you finally reach the closing table, there will be a range of closing costs to pay, including title fees, transfer taxes, and more.
Given the potential costs of listing a house in Twin Cities, it’s important to carefully evaluate whether a direct sale of your property would be a better option for your situation. By selling directly to a home buyer, you can often avoid many of the fees and expenses associated with a traditional sale, allowing you to keep more money in your pocket. Before making a decision, it’s important to weigh all your options and choose the path that makes the most sense for your individual needs and circumstances.
If you’re planning to sell your property, there are several essential things you need to take care of before listing it. These tasks can be a combination of things you can do on your own and those that require professional services for a fee. While you may not need to do all of these, it’s crucial to consider each one carefully to ensure a successful sale.
Firstly, you need to prepare your property for sale. This means decluttering, cleaning, and fixing any damages. You want your property to look as attractive as possible to potential buyers. It may also be necessary to stage your property, which is the process of arranging furniture and decor to make it look more appealing.
Secondly, you may need to get a home inspection. A home inspector can identify any issues with your property that may impact its value or deter buyers. It’s best to address these issues before listing your property.
Thirdly, you will need to consider the cost of marketing your property. While your agent will typically handle this, it’s worth discussing the specific marketing strategies they will use and how much they will cost. You may also want to invest in professional photography or virtual tours to make your property stand out.
Lastly, there are closing costs to consider. These are the expenses you’ll incur during the final stages of the sale, such as title search fees, attorney fees, and transfer taxes. It’s important to factor these costs into your budget when selling your property.
To enhance the appeal and create a welcoming environment, it is crucial to ensure that the house is clean before listing it for sale. While you can do a decent job yourself, hiring a professional cleaner to perform a thorough top-to-bottom cleaning can make a significant difference in the overall look and feel of the house. Additionally, if you do not plan on replacing the carpets or flooring, it is advisable to get them professionally cleaned as well.
It is essential not to overlook the exterior of the house. The exterior is the first thing potential buyers will see, so it is crucial to make a good impression. Hire a professional to power wash the outside of the house, including the windows, especially if you have a multi-story house. This will give your house a fresh and clean look, making it more appealing to potential buyers.
While cleaning the home, it is a great time to pack away all of your unnecessary items. People don’t want to see personal possessions or clutter when touring your home, so you will want to make sure everything is packed away. You might need to consider an offsite storage space or pod to hold your items until you have moved into a new house.
Repairs & Upgrades
You will want to fix up anything visibly broken or worn. This includes fixing and painting walls, replacing cracked tiles and smoothing floorboards.You might also take this opportunity to make minor upgrades such as new fixtures or hardware. Sending money on these things can help improve the value of your home. You just need to be comfortable paying up front.
You can’t have a beautiful listing with an ugly yard. The front yard is the first thing people see. This should not only be cleaned up but also used to showcase your home. Many people will add plants, flowers, new doors or fencing to make their curb appeal pop.
While The House Is Listed
While the property is on the market, you will still find yourself paying to have it for sale. There are many expenses you will be paying during this time that you could avoid with a fast and direct sale upfront.
While the house sits on the market you will still need to pay the monthly utilities. Even if you have moved out of the house, you still need to keep the water and electricity on for people viewing the home. You will also have to continue paying the homeowner’s insurance and property taxes up until the day of closing. You will also need to continue taking care of the cleaning and routine maintenance of the home. With many properties sitting on the market then having to go through escrow, it could be months until the house has officially closed. During this time, you could be out thousands of dollars you could have otherwise kept in your pocket.
Some agents will include great marketing, while others will not. To successfully list your house, you will want to ensure there are great listings and great photography of the home. Some people are even hiring drone photographers to capture their homes from above.
After An Offer Has Been Made
Once an offer has been made, and accepted, you will still be responsible for the insurance, utilities, and taxes up until the day of closing. Depending on the lender this could add several weeks to your timeframe. In turn, adding more money you are paying to own the home. Most offers are contingent on an inspection and appraisal process. You can avoid the below costs with a direct offer from a company who purchases as-is.
Once the inspection has been completed, you might have to negotiate repairs based on the severity. If there is a major problem with the house, the potential buyer will likely request it be fixed before going through with the sale. (The bank isn’t likely to fund a loan for a damaged property either.) If your buyer decides to rescind the offer, you will need to disclose the needed repair to all potential buyers going forward.
At The Closing Table
Once you are signing final sale paperwork, it is also time to sign over a check to your agent. This will typically run about 6% of the final sale price of the home.
Many additional fees are lumped together as closing costs. These include document filing, title search fees, credit check costs, transfer taxes, property taxes and more. On average, this will run you another 2% of your final sale price.
Once you add up all the costs, you can see that listing may not be right for every property. Many people find greater benefits by choosing a direct sale! Run the numbers for yourself, and make the decision that works best for you!