Did you know the average home seller pays 8-10% or $19,000-$24,000 in closing costs? Crazy, right!?
This statistic came from an article published by Zillow, a leading real estate marketplace that tracks home sales data throughout the country.
If you think about it, that’s a lot of money to give away just to sell your house. You may be required to pay even more out of pocket if the buyer asks you to make any repairs after the inspection. Hopefully, you don’t have any past due property taxes or tax liens on the property. It can add up fast!
You should never have to give away so much money just to sell your home.
Let’s do some math. Let’s say you hire an agent and get a buyer to pay $250,000 for your house. Typical agent commissions are 6% in most markets. So that would be $15,000. In some places, depending on the local market, the listing fee can climb as high as 10%!
Property Inspection
Most buyers will hire a professional inspector to do a thorough inspection of your home. Many banks require your house to pass inspection before issuing a loan to the buyer. Inspectors will check everything: Roof, siding, foundation, subfloor, framing, attic and evidence of any water intrusion. Is there any moisture in the basement? Are the HVAC systems, ductwork, fireplaces, electrical, plumbing, and appliances all in working order? Are all the toilets and sinks functional? Do the gutters function properly? Is there any peeling paint? If the inspector turns up any issues during the inspection, odds are you are responsible for fixing them or lowering your sales price.
Repair costs can range anywhere from $1,000 to $30,000 or more. If your home is older you likely have electrical and plumbing that needs to be updated to comply with local building codes. When you start getting into HVAC, roof and structural repairs the costs can start adding up fast. If you need a new septic system, well or drain field that could run you $25,000 or $30,000!
For this example, we’ll be optimistic and assume your repairs are on the low end. Let’s say $4,500.
Closing Costs
Wait, there’s more you say? Unfortunately, yes. Typically, sellers get hit hardest with closing costs. Here are the most common closing costs a seller will pay.
- Closing Fees – $450
- Title Insurance – $1500
- Transfer Tax – $2,040
- Prorated Property Tax – Depends on when/if you paid your last tax bill
- Attorney Fees – $750
- Wire Transfer Fees – $50
- Home Warranty Premium for Buyers – $600
These are some of the most common but in addition there could be liens or judgments that need to be paid off. There could also be additional escrow fees, unpaid HOA’s, termite inspection/remediation and the buyers could ask you to give more concessions if the house needs repairs.
Adds up quick, doesn’t it?
We are up to $5,390 in additional closing costs. This is assuming the sellers are not asking for any additional concessions. That’s $15,000 in realtor commissions, $4,500 in repairs and $5,390 in estimated closing costs for a total of $24,890. And this is assuming there are no liens, judgments, back taxes, utilities or HOA’s that are due. Many times there are additional costs and this number could even be higher.
What if I told you there is a way to sell your house without paying any closing costs. That’s right, no closing costs, commissions, fees or repairs. That could be $25,000 in savings, or more!
Imagine what you could do with all that extra cash. Put it towards your kid’s college fund, save it for a family vacation, buy a new car, invest in the stock market or put it towards a new home. The possibilities are endless! You shouldn’t be penalized just because you want a fair price for your home. No one should have to pay thousands out of pocket to sell their home.
I’ll let you in on a little secret. There is an easier way to sell your house without a realtor and pay none of these extra costs. You don’t even have to make repairs or clean the house. Leave all of your unwanted junk behind.
How does it work? There must be a catch, right? Lucky for you there is no catch. We aren’t asking for your money. We are not asking for your email so we can add you to a subscription list. You don’t have to give us a credit card or sign up for anything. We simply want to let you know there is another way to sell your house. And it can save you a lot of money.
👉 CLICK HERE 👈 to see how you can put more money in your pocket when selling your house.