The cost of selling a home without using a realtor is not as simple as it may seem. There are many costs that must be taken into consideration before the decision to sell on your own can be made. The potential risks and benefits should also be weighed in order to make an informed decision.
Sales commissions can be reduced by selling a property “by owner.” When you sell a house without the help of an agent and forgo the commission, you will need to keep track of all expenses. These include not only direct out-of-pocket costs, such as advertising costs and home inspections but also indirect costs like your time spent to show the house and market it.
Let’s face it, the costs of selling the house without a realtor are high. Selling your home can be stressful and time-consuming, but you can save money if you do it yourself — assuming that’s something you’re willing to take on. To give yourself an idea of what might happen when you sell the house without using a Realtor, let’s look at some potential downsides.
Advertising
Did you know that there are hidden costs of advertising your house without a Realtor? These can include but are not limited to: paying for an ad in the paper or online, hiring someone to take pictures and write descriptions, getting copies of any disclosures about the property.
You also need to factor in time spent making phone calls and sending emails trying to find out if people want showings. If you’re considering selling your home without an agent it’s important that you understand all the costs associated with doing so before signing on the dotted line.
Professional Photographer
Did you know that hiring a professional photographer can increase the value of your home by $3,000? This is because professionally staged photos show off your property in its best light and give buyers a more accurate idea of what they’re getting for their investment.
Attorney Fees
Attorney fees can be a major expense when selling your home. There are two options for paying them:
- You pay the attorney directly
- You pay an agent who pays the attorney on behalf of the seller.
If you want to save money, it is best to hire a realtor and sell through them. However, if you prefer to do things yourself and don’t mind higher costs, then hiring an attorney might be right for you!
It’s important to understand that the cost of an attorney is negotiable. What you’re really paying for is their experience and knowledge in closing this type of deal, so shop around and talk with a few attorneys to negotiate your price!
Holding Costs
Many people believe that they can sell their own home without a realtor, or forgo the pricey commission fees. The truth is that you might not be able to save as much money as you think and there are other costs associated with selling your house on your own.
First, you must consider “holding costs.” Basically, this is the realtor’s fee for selling your house while it sits on the market without a buyer. These fees will usually run 1-2% of the sale price and cover things like advertising and marketing (pictures and signs), showing your home to interested buyers, and office expenses (stationery, phone bill, computers).
You might be able to get rid of these holding costs if there are other agents trying to sell your house at the same time (double commission situation), or if you don’t use a realtor but contract with a private party instead. However, even in that case, you’re still responsible for advertising costs which can add up quickly.
Repairs
The costs of repairs for a house can be overwhelming. The average homeowner spends about $800 per year on home maintenance and repairs, but that number varies depending on the size of your home, how often you deal with upkeep, and what type of work needs to be done. There are many different scenarios in which this expense could come up; here we will talk about some common ones.
For example: When it comes to plumbing and electrical issues, these typically cost between $500-1000 dollars each time they happen. These types of problems can also lead to other issues such as mold or pest infestations if not dealt with quickly enough which will make them even more expensive to fix (upwards of $2000). This is why it’s so important to regularly visit your basement or crawlspace and clean out any water or moisture that has gotten in over the years.
There are other issues that can arise from a cluttered basement such as tripping on objects, damaging pipes by accidentally hitting them with something sharp while moving boxes around, and catching the bottom of your feet on items while moving about. All of these can lead to injuries that cost more than just money, they also take time away from your life that you will never get back. It’s an investment to maintain a clean space for this reason alone.
The average homeowner spends anywhere between $9000-90000 updating their home throughout its lifetime. This is a big number but it makes sense when you consider how long most people own their homes. Before selling your home, it’s imperative that all repairs that must be done are completed.
Home Inspection
Some buyers have their own inspectors so they can choose who does the inspection. Other buyers will ask for an estimate before choosing if they want one done at all. Costs vary depending on the location and size of the property being inspected, but typically inspections range between $500-$1000 dollars per day with three days being about average.
There are some simple things that your home inspector will check during the inspection. Some of them are safety issues, some are standard items that are checked on every sale and then there are others that are subjective to the buyers.
Surveying
A survey is a detailed inspection of an area. When selling your house, you want to make sure that all the information about the property is accurate and up-to-date for potential buyers. A survey will reveal any issues with the land or building that may not be visible at first glance. It’s important when buying a home to always get it surveyed before closing on the purchase! Surveys are also important when purchasing commercial properties too, so you know what you’re getting into from day 1!
It is difficult to know the best way to go about selling your house without a realtor. One of the most popular options is to hire a home inspector and an appraiser, but this can be expensive. The cost of hiring these two professionals varies depending on where you live, how many bedrooms are in your house, etc., but it can easily range from $1,000-$2,500. This price covers both services–but what if you only want one or the other? It’s possible that there will still be some overlap for which you’ll end up paying more than necessary.
Staging
The cost to stage a house is only going to vary depending on the scope and size of your project. Generally speaking, you will spend anywhere from $1,500-5,000 in total. Price may vary depending on what needs to be done such as painting or replacing carpeting.
Home staging is incredibly important to get your home sold. It will help make the house look bigger while increasing curb appeal. It can increase your sales price by up to 7% while garnering more attention from potential buyers. Your home should have an open floor plan, neutral colors, and clean lines for best results.
The process of staging a home can be daunting. There are many different things that need to be done and it sometimes feels like you’re not sure where to start or how to go about doing everything. But there is no need for worry because we’ve compiled a list of the best tips and tricks for staging your house without a realtor, which will help make the process easier and more efficient.
MLS Listing Fee
The MLS listing fee is a one-time fee charged to the seller when they list their home for sale on the Multiple Listing Service. It typically ranges from 1%-2% of the sales price but can vary depending on which real estate boards you are a member of and whether or not there’s an additional advertising surcharge.
Listed on an MLS listing site is the best way to get your home in front of a larger audience and increase exposure. The number one benefit of using an MLS listing site is that it provides more exposure to potential buyers. This means you will have more people coming through your door, which translates into increased chances for a sale! More importantly, there are other benefits too.
For example, listings on MLS sites are typically seen by agents who work with many different sellers so they can give you advice about staging or pricing strategies that might help sell your property faster than if only local agents were viewing the listing.
Summary
There are many expenses that you’ll need to pay in order to sell your home without a realtor. For starters, there is the cost of advertising. You may also want to consider hiring an agent who will help with negotiations and paperwork for quick sales. There are hidden costs too, like paying for repairs before putting your house on the market, so be sure you have enough money set aside to cover these unexpected expenses.
If you were previously unaware of the many expenses and costs that were needed to sell your home without a realtor, there is another way. Your solution should be obvious by now – get rid of the house by using cash buyers! If you’re looking to sell your home for cash as quickly as possible, look no further than Simple Sell Home Buyers.
We are trusted homebuyers that offer sellers a straightforward process that doesn’t require any complicated paperwork or waiting periods. Contact us today, or fill out our online form, and we’ll buy your house as-is for an attractive cash offer.
Image Credits
GO Banking Rates / Google Stock Images
Rent Redi / Google Stock Images
Attorney Brian White / Google Stock Images
Roofing Solar / Google Stock Images
Surveyor Local / Google Stock Images
Virtual Staging / Google Stock Images
Realtor.com / Google Stock Images
