You might think that listing your house on the MLS with a Realtor is the only option when you decide it’s time to sell your house. However, more and more people are opting for a direct sale with a Professional Home Buyer instead of hiring a real estate agent. You have options when selling your Salt Lake City house. Find out what listing your house is really costing you when selling your house in Salt Lake City!
Sometimes not every house sells well on the MLS. Some properties will require major expenditures and dedicated time and effort in order to sell. Some studies have shown, that is costs over $20,000 to sell your house with a real estate agent! And it can take 6 to 12 weeks before you close and get your money from a MLS listing even in a hot market. Before you choose to hire a Salt Lake City agent, make sure you understand what it is really costing you to sell your house and how much time it will take to sell your house.
The last part of this article will go into detail on deciding if you should list your house or sell your house to a professional house buyer. Now to learn what Listing Your House Is Really Costing You.
What Listing Your House Costs You
Commissions to Sell Your House
Agent commissions in Utah are typically around 6% of the final sale price of your house with 3% of that going to the buyer’s agent. Sometimes this fee is worth it, but remember, this amount will be taken from your final sale price at the closing table.
Many times, you will be faced with administrative costs such as reimbursements for things like flyers, listing fees, and open house catering. Every agent is different. Before you sign a listing agreement with a real estate agent to sell your house, make sure you are aware of all it covers. Real Estate Agents will typically cover all of the costs mentioned in a seller’s market. Know up front what your agent will be doing for their commission.
Cleaning Your House
It’s typically recommended that you have your Salt Lake City area house professionally cleaned before putting it on the market. If you are not replacing the carpets, you will want those professionally cleaned as well. You will need to keep up with the cleaning while the home is listed. There are often last minute showings and people looking to drop in to see the house. First impressions are critical.
Staging & Storage
Hopefully, many people will be coming to see the house. Usually, showings will be arranged with your agent to happen when you are at work or away from the home during the day. However, most people will want to look at your house after work in the evening or on weekends, and you need to be ready for that. With so many people in and out of the house, many sellers will opt to get a head start on packing by boxing up their personal items and putting them in storage until the house sells. By keeping only your necessities at the house, it won’t ever appear messy or cluttered. You can also opt to have a professional come in and stage the house. Be prepared to take a short drive or walk when people want to look at your house at the same time you are home. Potential buyers feel like they can’t talk openly to their agent while you are home. Leaving during a showing is very important.
House Repairs And Upgrades
Depending on the condition of the house, these expenses could be small or end up setting you back thousands. As any homeowner knows, sometimes when you find one thing that needs repairing, it can lead to 10 more. And once your potential buyer has their home inspection done, they will likely want to negotiate repairs with you as well. You are under no obligation to make all of the repairs, however, if you want to sell the house, you might want to consider some negotiation. Also, FHA Guidelines will demand that certain repairs are made for the FHA buyer to have their loan approved.
If your house is way out of date compared to other properties on the market, you will want to refresh some things to make it current. You can have a big impact with small improvements such as new flooring, painting, and fixtures. As with the repairs, these costs can snowball too. There might be a few trips to home depot in your future.
Talk about 1st impressions…curb appeal is a huge factor to consider. Many times potential buyers will drive buy the houses they are interested in before scheduling an appointment to see the house. Before listing, you might consider reseeding the lawn, planting some flowers along the driveway, or having your trees professionally trimmed. All of this adds to the curb appeal and overall appearance of the house. You’ll need to keep up with it while it is listed by regularly mowing, weeding and sweeping. Depending on your neighborhood and available time, you might hire a professional landscaping company to keep things in order while the house is on the market.
Like it or not, every day that you continue owning the property, it is costing you money. This is why flippers aim to sell as quickly as possible, they don’t want to hold on to the property longer than you have to. You will have to pay monthly utilities, taxes, insurance, likely a mortgage and costs for monthly maintenance. When you think of all the little things your house needs over time, the bills can add up pretty quick.
As you can see, the costs to sell a Salt Lake City house using an agent can add up quickly. Some properties will cost more than others to prepare for the MLS listing. In order to save time and money, you can choose to sell your Salt Lake City house to Gary Buys Houses. We will not require any repairs nor charge you any commissions. Before you call an agent, find out what we can do for you! We can also buy your house and, as part of the contract, give you free rent and allow you to stay in the house AFTER CLOSING and After You Get Your Money to help make moving easier on you.
Will I Make More $ Listing My House? The Decision.
Listing your house is really going to cost you all of the things mentioned above. However, listing your house will usually NET you more money when all is said and done unless the house needs a lot of work. The difference is typically the profit a Professional House Buyer will make. What I typically explain to people that are having a hard time deciding between Listing Their House or a Direct House Sale is to decide if the extra money from listing is worth the what is involved with listing a house. Things like finding an agent, deciding on the showing schedule for potential buyers, picking one or two weekends to hold open houses, deciding with your agent how to market the house, after all of this you will need to decide on which buyer’s offer to accept, then there will be scheduling inspections, appraisals, repair people, then you wait 45 to 60 days for the buyer’s loan to close. Sometimes you have to start over if the buyer fails at the last minute because of financing problems…it does happen.
So lets say the Professional House Buyer wants to make $10,000 in profit from the purchase of your house. Not always, but typically, the difference between what you will net from listing your house with a real estate agent vs selling your house to a direct buyer is the amount of profit the house buyer needs to make for the business. So as mentioned, the question for the house seller really becomes, is the extra $10,000 in this example worth the hassles of selling your house by listing it on the MLS? This is a personal decision about selling a house only you can decide. We would love to help you in your decision making process. Call us today and let’s talk about your situation. You are NEVER under any obligation, and you will never experience any high pressure from us.