Sometimes the cost of selling your house can really add up. Once you factor in everything, a traditional sale with a Baltimore real estate agent may not be worth it. In our latest post, you can learn how to sell your house without spending any money in Baltimore.
As a homeowner, you have likely thought about what selling your house might mean for you. However, many homeowners avoid selling their house because they are worried about the costs, the wasted time, or the hurdles that they will face when working with a real estate agent. Before discussing how to sell your house in Baltimore without spending any money, first we need to take a look at some of the costs home sellers may face when working with a Baltimore real estate agent.
Typical Costs When Selling
Repairs
Before a house goes on the Baltimore MLS, there will likely be some repairs that are needed to the house before selling. Even the cost of small repairs can add up quickly once you break it all down. Repairing walls and fixing leaky pipes can all lead to more repairs and more money out of your pocket. Make repairs wisely and be sure to properly disclose anything you don’t plan to fix. You should also consider repair requests that may be made after the potential buyer has completed their inspection phase. If the house isn’t appraising high enough for the lender’s approval, you might need to spend some more money increasing the value of the home.
Upgrades
Often times homeowners will make upgrades to their property in order to make it more competitive with other homes on the market. While some upgrades can add value, there aren’t any guarantees. Some upgrades simply don’t add enough value to the property to be worth it. Keep in mind that kitchens and baths are the two most important rooms in your house when considering upgrades or updates.
Marketing
Marketing consists of many things including professional photography, drone services, premium listing placement, listings outside of what your agent normally provides, print materials, and much more. While some things are included in a typical listing agreement, others are not. To sell the property as quickly as possible, you may find yourself shelling out a little extra in order to make sure that your property gets maximum visibility. Just make sure the things you are spending money on upfront make sense in the long run.
Listing Fees + Agent Fees
While some agents are full service, never charging you a dime aside from commission… others are not. You may find yourself looking at additional fees for administrative costs, marketing expenses, or open house fees. Most agents won’t require to be reimbursed for these things, however, if you are looking for premium services, you may find yourself paying a bit extra.
Commissions
The agent commissions will typically amount to about 6% of the final sale price on average. That means that for a $200,000 sales price, you will be paying $12,000 in realtor commissions. This is a hefty amount to part with, so if you decide to list, make sure that your agent is worth their fee! In some cases, you will be able to negotiate the commission rate or find an agent who offers limited service for a flat fee.
Closing Costs
Closing costs cover things such as a title search, surveys, and loan payoffs. While buyers typically will pay the majority of the closing costs a seller can expect to pay somewhere between 1-3% of the final sale price in closing costs. However, when you work with a professional buyer such as Maryland Home Buyers to sell your house, the closing costs can be avoided.
Holding Costs
Quite simply, it costs money to own a house. If the house is on the market for a while, you could be looking at a small fortune spent on things like utility bills, homeowners insurance, property taxes, maintenance, landscaping, and a mortgage if applicable. When you sell your house quickly, you can save thousands of dollars in holding costs, as opposed to incurring these costs when your home sits on the MLS, waiting on a qualified buyer.
How To Sell Your House
Sell it “As-Is”
Selling your house as-is will save you a fortune as long as you are able to get the property in front of the right buyers. Focus on showing the home’s potential, even including a cost analysis showing an estimate of what the improvements will cost. You’ll want to make sure investors and cash buyers have the opportunity to purchase the house without making any needed repairs.
List It
A successful listing will require many of the costs listed above. Save money by choosing a full-service agent so there are no hidden surprises. If you choose to sell without making repairs, consider offering credits to buyers who are willing to renovate the house as they see fit.
Sell To A Professional Buyer
Working with a professional seller such as the team at Maryland Home Buyers will allow you to sell your house quickly and for a fair price. We’ll work with you to make the process as simple as possible, making sure that you do not have to spend a dime on the house.