One important aspect of most home sales is the cost of selling the home. While it may seem counter-intuitive, sellers do typically invest in their property and pay in order to sell their home for top dollar.
These seller costs vary, but they are generally broken into three overarching categories. Keep reading for more insights you can use as you approach home sale costs.
Prepping your house for sale
When you’re getting ready to put your home on the market, you’ll want to consider giving your house a mini-makeover inside and out.
Minor renovations could include:
- Painting your front door
- Replacing broken cabinet hardware
- Purchasing updated light fixtures
Major repairs might look like:
- Installing new carpet
- Repairing water damage from a leaky pipe
- Putting in a new roof
Don’t forget the exterior! Outdoor updates may involve:
- Window washing
- Resurfacing the driveway
If you’re unsure of what to repair or replace within your home, your REALTOR® can recommend projects that will appeal to buyers and provide a high return on investment upon resale.
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Hiring a Realtor
Hiring a Realtor is another factor in the average cost of selling a home. When you hire a Realtor, you’ll agree to pay their commission rate to represent you throughout the entire process of the property listing and sale.
If you’re a first-time home seller, or even if you’ve done this before, it’s important to cover the basic parts of what you’ll pay your Realtor (listing agent) for.
The commission rate
To start, you’ll discuss and agree upon a commission rate that you will pay your listing agent. The total amount of the agent’s commission is calculated based on the total price of the home paid at closing.
Edina Realty is a full-service brokerage that provides a higher value offering to our buyer and seller clients than discount brokerages, including:
- The largest local network of agents and real estate professionals
- High-quality marketing and promotional materials
- Industry-leading technology tools
As a result, Edina Realty and our agents have been the local market leader for the last 18 years.
The buyer agent’s commission
Although the buyer may pay a small fee, they don’t pay their own agent’s commision. Instead, the home seller pays their listing agent’s commission, and the listing agent then pays the buyer’s agent from that commission check.
Marketing and promotions
In addition to paying themselves and the buyer’s agent for the sale, the listing agent often personally covers your home’s marketing and promotion costs. This means the agent may pay for things like:
- Yard signs
- Open house refreshments
- Online advertising and flyers
- Custom video tour
So remember, not every penny is lining the pockets of your agent; part of the commission you pay as a seller is also going toward landing an offer on your home. By choosing an Edina Realty agent, you’ll know that you’ve selected a licensed Realtor who will put your best interests above their own.
As you march toward closing, your listing agent and the buyer’s agent will work alongside several other vendors to finalize the buyer’s loan application and approval, title commitment, home inspection, closing date, appraisal, transfer of utilities and more. These activities are all part of the closing process, and they each generate costs called closing costs.
Closing costs usually range from 2 to 5 percent of the home’s purchase price. While the buyer is expected to pay closing costs unless it’s otherwise negotiated, buyers don’t always have the cash on hand.
As a seller, you can decide if you want to accept an offer from a buyer who is requesting that you pay the closing costs, or if you’d rather wait for a buyer who has the funds to pay for closing costs.
Key points and next steps
Whether you want to determine the cost of selling your home or find a Realtor to help you through the listing and sale process, Edina Realty’s customer care team can help. Reach out today to get matched with a local market expert.
Additional resources to consider: