When most people go to sell a house, their first thought is how much money they can make on the deal. However, what many people do not realize is how much it costs to sell a house today. While some costs can run into thousands of dollars, others may only cost you only a few hundred dollars.
Regardless, all these expenses add up, and there are several of them. Many of these costs are hidden and can blind-side you midway through your sale. Fortunately, if you are on a budget, you can sell your house as-is for cash to a company that buys houses in Louisville, Kentucky. Below, we look at common selling expenses and how to avoid them with a cash sale.
Why Is Selling a House So Expensive?
There are several reasons why selling a house can be expensive.
First, if you hire someone to sell your house on your behalf, you have to compensate them for their time, knowledge and resources. These people are real estate agents or brokers. Second, if you live in your house for several years and don’t maintain it, you can expect to make repairs or upgrades to make the house sellable.
Third, when you sell your house, everybody wants a piece of your profits. Kentucky local and state agencies will come knocking on your door requiring you to pay a number of fees. Last, it’s simply the cost of competing against other home sellers in the market. Buying a house is a major long-term investment. As such, it will cost you to both keep it and sell it.
Common Home-Selling Expenses
Most of what drives home-selling expenses are the things you need to do on the front end to prepare your home for sale. However, there are a lot of things on the back end that often creep up on you. Some common home-selling expenses include
|Real estate commission||5 to 6 percent of the sale price|
|Home repairs||$5,000 to $15,000|
|Home staging||$500 to $2,000|
|Mortgage payoff||Depends on the terms of the loan|
|Closing costs||5 to 10 percent of the sale price|
|Property tax||Prorated – based on current tax|
Realtor commission may not seem like much until you do the math. For instance, if you sell your house for $200,000, you can expect to lose $12,000 in commissions. It often comes as a shock to many home sellers who have no idea how much money real estate agents make.
Another surprise expense is the mortgage payoff, which can trigger two major expenses: early payoff penalties and capital gains taxes if you make a profit on the sale. There are numerous closing costs that can quickly eat into your profits. They can add up to as much as $10,000 or more. Plus, the buyer may negotiate a deal where you pay the property tax for the next year or two to sell the house.
How Can I Save Money Selling My House If I’m On a Budget?
The best way to sell your house if you are on a budget is to find a company that buys houses in Louisville, Kentucky, and sell your house as-is for cash. A cash sale will wipe out nearly every cost you have – especially the big three:
- Realtor Commissions
- Repairs, upgrades, and home staging
- Closing costs
If you skip those expenses alone, you can save more than $20,000 when selling your home. How much money you save depends on your particular situation, the current condition of your home, and your asking price.
How do you get started with a cash sale? The process is simple
- First, find a company that buys houses in Kentucky.
- Second, schedule a quick, no-obligation walkthrough.
- Third, get a cash offer from the buyer.
- Fourth, agree to the offer and schedule a close date.
- Last, sign the paperwork, get your check, and close the sale.
Use the money to pay off your mortgage and get out of your house with no strings attached.
Sell Your House As-Is to We Buy Real Estate
If you need to sell your house fast in Louisville, Kentucky, but don’t have the financial means for a traditional home sale, contact We Buy Real Estate. We can buy your house as-is and pay cash. Call 502-458-2722 to get a guaranteed offer.