How much does listing your property cost?
In this article, we are going to break down the real costs of selling your home on the open market. This is typically how most homeowners handle a real estate transaction, although some opt to sell their home FSBO (for sale by owner), which opens up an entirely new set of problems in itself. For example, we will use our homeowner “Jim” as an example. We will go through some common problems that come up in a real estate transaction, as well as what these problems can cost.
Jim decides that he wants to sell his house that he has owned for the last 15 years. He has been offered a job that pays well in another state, and wants to make sure that he can get there in time to accept the offer. He has a month to make his move, and he’s excited to get started. He has thought about some of his options already. He knows that he can either use the help of a real estate professional to negotiate on his behalf, or list the home on his own and save some money. He knows however, that selling his home himself will have his own costs, such as marketing the property, showing it to potential buyers, and he wouldn’t have the benefit of experience in these kinds of transactions. On top of that, he just doesn’t have the time. He wants to make sure his property sells quickly, and that there are no issues on the way to the closing table. So, he decides to hire his friend “John” that he knows has been a real estate agent for years.
John tells Jim that he can help him sell his property for $300,000, based on the price of similar homes that are selling nearby. So let’s break down the amount that Jim will put in his pocket at closing if he sells at that number.
- Purchase Price $300,000
- Remaining mortgage balance $100,000
- Estimated realtor fees paid $18,000
- Estimated closing costs paid $9,000
- The seller will walk away with $173,000
On top of that, the seller will have to deal with buyers negotiating against their price, the contract falling out, and they might even have to put more money into their property if the buyers want to see something fixed up before they close. So really, they can be cashing in much less by the time it gets to close. And they might not even sell in time to get to their destination and keep the job! This happens more often than you would imagine, and can lead to a seller being caught up in an unpleasant situation, with no access to their equity, and bills to pay.
The alternative
As we mentioned before, there is always the option of listing FSBO. Here are a few of the big pitfalls there. Imagine Jim lists the property for $300,000, but the estimated market value of the property is really only $250,000. What happens now is that Jim gets no offers, is unable to close and move to the place of his dreams, and doesn’t know where to turn next. This is completely understandable, as Jim is not a real estate professional and doesn’t know what the most accurate price for his property is. His property sits on the market for all 30 days without an “acceptable” offer, he takes his listing down, and resigns to his fate of not having the job and home of his dreams.
This is a classic American horror story, and unfortunate for many people who don’t know their way out of this trap. But there is a better way! At Scout Peak, we buy houses from homeowners in exactly this type of situation. We buy houses as-is, so there is no need for you to put another cent into the property. We even have flexible closings, and can close in as little as a few weeks, if you’re really in a pinch. We can help people with unwanted inherited property, in risk of foreclosure, and we can even help you find the next property that you’re looking for, while lining up the closings so that you can close on your terms. Do you or someone you know need to sell your house with minimal hassle? Reach out now and see how we can help!