| I know what you are thinking. If I am selling my | | | | or kitchen appliances. If you don't replace and |
| home why would it cost me money? The | | | | repair then you will probably have to discount the |
| purpose of this article is to explain the cost of | | | | asking price to compensate. I would do the |
| selling your home. If you want to make money | | | | repairs up front because it will be easier to sell |
| selling your home you need to know the | | | | your home with the repairs finished. So for our |
| associated cost, so let's take a look. | | | | example let's say you spend at least $5,000 |
| For our example we will look at selling our | | | | dollars for repairs and upgrades. The next largest |
| $300,000 home. Make sure you know the value | | | | cost will be closing cost. Most sellers will be asked |
| of your home before you list it. There are many | | | | to pay some if not all of the closing cost. Our |
| free online home appraisal services that you can | | | | example will use $3,000 dollars. The next cost is |
| use to get an idea of your home value. After | | | | really not a cost but a discount. The average |
| consulting with our real estate agent and using | | | | house sells for 97% of its list price. So in our |
| several free home appraisal services we come up | | | | example we will lose $9,000 dollars. There are |
| with our listing price of $300,000. Great all we | | | | even more cost but I think we have listed enough |
| have to do now is sell it for our asking price and | | | | so let's get the grand total. |
| we are on easy street. Not really. The largest | | | | We started with a listing price of $300,000 and |
| cost of selling your home is the commission you | | | | we need to subtract $35,000 dollars. The take |
| will pay to a real estate seller agent and buyer | | | | home payoff is $265,000 dollars. So the bottom |
| agent. The normal commission is 6%. So this | | | | line is not even close to our original listing price. |
| number comes up to $18,000 dollars. Take a hard | | | | Don't be tempted to raise the price of the home |
| look at this number and decide if what the agent | | | | to compensate because you will price your home |
| does is worth this kind of money. The truth is | | | | out of the market. You need to examine the cost |
| that a good agent is worth good money. Notice I | | | | of selling your home the traditional way before |
| said a good agent. Make sure you hire an agent | | | | you list your home with an agent. If you decide |
| that actually sells homes and not just lists them. | | | | to sell your home yourself or FSBO then make |
| The next big cost is upgrades and repairs. | | | | sure you can handle the entire sales process from |
| Normally to get your home in selling condition you | | | | start to finish. Selling a home is not easy so take |
| will need to paint the home and replace some if | | | | some time to weigh your choices before jumping |
| not all of the flooring. You might need a new roof | | | | in the home seller arena. |