How Much Does it Cost to Sell a House?

Happy New Year! 

We’ve officially entered a new decade and for many families, it’s the time to start planning for the future. Your New Year’s Resolutions might be health-related or business-related, but many of you are thinking it’s time to make the move into a new home. The only thing standing in your way is your current home. Even if you’re in a great neighborhood and you’re not concerned about the length of time your home will be on the market, you might find yourself wondering: how MUCH does it cost to sell a house?

There are several factors to consider prior to estimating an answer to that question. And it’s important to keep in mind that not everyone will have the same experience or undergo the same expenses with the sale of their home. Just because your neighbor sold their house in less than a week or your cousin was able to sell their home without extensive home repairs or staging doesn’t mean that you will share a similar experience. Each home is unique - just like your family is unique. But by the end of this article, you will have a general estimate of what it will cost you to sell your home. 

The six main factors that contribute to your overall out of pocket expenses that we’re going to discuss are: 

• Preparations/Home Repairs

• Staging

• Monthly Carrying Costs

• Commissions

• Closing Fees

• Taxes

We’ll go over these individually and then add them all together at the end of the article - giving you the average numbers needed to calculate how much out of pocket expenses you can expect when it’s all said and done. 

Preparations/Home Repairs

No house is perfect. And the majority of the time we don’t expect them to be. Setting aside the arguments over whether or not you should paint neutral colors or just allow individuals to see the potential of your home during showings, let’s be honest: there are a few areas of your home that you probably want to work on prior to listing your house on the market. 

But where should you focus your attention? What updates are really necessary to entice buyers to be interested in your home? 

According to Realtor.com, you should be focusing on projects that will give you the most return for your investment. A few examples that have shown to often add considerable value to your home are walls and floors, your front door, your outdated roof and/or siding, and your kitchen. 

If you’ve gone through a real estate agent to list your home, then they will have some great advice on what updates will give you the most bang for your buck. If you’ve chosen to sell your home without the aid of a realtor, then you may consider consulting a general contractor. They’ll be able to give you any problem areas that may present themselves during an inspection or final walk-through that might give potential buyers cause for concern. 

But even if your house is in perfect condition, take a look at the areas that are going to leave a lasting impression, such as your kitchen and your front door. The door is the first and last thing people will see as they walk through your home - so upgrading to a steel door in a pleasing color is an easy win for you. Painting your walls in a neutral color (a quick Google search will tell you what the best colors of the year are) is also a way to spruce up your house without accruing too much expense. 

Staging

If you have already vacated the house you’re selling, then hiring a professional stager may be the right move for you. They can help your home look warm and inviting, as well as giving potential buyers an idea of what the home looks like when it is lived in. 

However, if you are living in the home while trying to sell it, then staging is something you might consider doing on your own. Start by decluttering your home and removing as much storage as you can. You may need to rent out a storage space for this depending on how much you have. Ultimately the goal is to depersonalize your home as much as possible. You want the people who come to look at your home to be able to picture themselves living there, and that can be difficult if you have family photos hanging throughout the home. 

Monthly Carrying Costs

This category plays a much larger part if you have already moved out of the home you’re trying to sell. If you’re still living in your home, then you expect to continue to pay your mortgage, homeowner’s insurance, etc. The only extra might be if you’ve hired a professional stager or if you’ve had to rent out a storage unit to help declutter your home. 

For those of you who are trying to sell a vacant home, your Carrying Costs will have a much larger weight for you, especially if your house sits on the market for an extended period of time. You’ll have to pay to keep utilities going (no one likes to walk through a dark house they can’t really see), continue to pay homeowner’s insurance (which may increase due to the house being vacant), along with your mortgage and any home association fees the property may come with. 

If you’re in this situation, selling your home as quickly as possible will lower these costs, but you should definitely keep in mind how much extra you’re spending each month your house sits on the market. 

Commission

If you are not choosing the “for sale by owner” route, then you’ve signed an agreement with a real estate agent which awards them a commission: a percentage of your sale price, you could expect to see somewhere between 5% and 7%. This is subject to your negotiations with them, but you can expect to reach an agreement somewhere within that range. Depending on the final sale price of your home, this could end up being your highest cost for selling your home. 

In addition, keep in mind that often times the seller finds themselves paying the buyer’s closing costs as well, which will include their realtor’s commission. Keeping an eye on all these numbers will ensure that you have no surprises on closing day. 

Closing Fees

This will vary from state to state, but typically include fees to the title company (yes, they will absolutely charge you per piece of paper they have to print), your year to date homeowner’s insurance owed, etc. For a complete list, you should speak with your realtor as they’ll be familiar with the proceedings. 

In most states, you’ll also be required to pay for a home inspection prior to closing day so that your buyers can ensure they’re not in for any surprises upon taking possession of the property. And if that inspection turns up any signs of termite damage or other potential problems, you might be looking at additional last-minute expenses. 

As a side note here, in very rare cases, you may find that you’re so upside down in your own home that you’d end up paying money on closing day just to sell your home. If this is the situation you find yourself in, please get in touch with us. We specialize in buying houses from people who are looking for a quick and painless sale and we will provide you with a fair cash offer within 24 hours of hearing from you. Click here to fill out the necessary information to find out if this is an option for you. 

Taxes

Besides your personal property tax, can you expect to pay taxes on any profit made from selling your home? As long as you made under $250,000 (or $500,000 for couples filing jointly), it should be exempt from Federal Income Tax. But that doesn’t mean that you won’t owe local taxes, which may be included in your Closing Costs. 

For additional detailed tax information for the sale of your home, check out this article from TurboTax. 

What does all of this mean? 

Well, in April of 2019, Zillow estimated that when selling your home, you can expect to pay an average of $20,851, mostly because of your realtor commissions and state and federal taxes. 

Does this mean that’s exactly what you can expect to pay? No, of course not. This is all based on the cost of your home, any home improvements you make prior to listing your home, or any problems that arise during an inspection and final walkthrough. I’ve seen a hot water heater break down on the day of the final walkthrough, forcing my seller to replace it prior to closing day. Bad timing for the seller, but good timing for the buyer. 

While it’s impossible to foresee everything, by utilizing the above list of categories, average commission rates, and closing cost estimates from your realtor, you should be able to put together a number that is pretty close to what you will pay on closing day. 

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We Buy Houses In Kansas City: What To Expect When Selling

Is your home a bit worse for wear? Do you still need to sell, but aren't able to put in the time and money required to fix it up?

Don't worry! You still have options.

If you're in a position where you need to sell your home quickly, you might want to consider selling to a house flipping company -- you know, the companies that post "we buy houses" signs all over town. 

Keep reading to learn more about what to expect when selling your house to one of these companies. 

Why Sell To A We Buy Houses Flipping Company?

First, it's important to understand why it might be in your best interest to go with a house flipping company. 

There are lots of benefits that come with selling to a we buy houses company, including the following:

The process is simplified

When you sell a house through a regular real estate company, you face a lot of challenges, especially if your house is not in the best shape. 

With a house flipping company, though, you get to rid yourself of the burden quickly and with very little effort on your part. 

You'll sell your home faster

One of the main reasons people turn to house flipping companies is the fact that we move a lot faster than a traditional real estate company. We'll have you out of your home and onto the next chapter of your life in no time.

Most of the time, we close quickly -- almost always within 30 days. Sometimes we can close in as little as one week!

You don't have to deal with a real estate agent

Finding a real estate agent can be frustrating. Even if you go through the effort of finding a person that you feel comfortable with, you still might have differences later on that make selling your home difficult. 

When you sell to a flipping company, there is no real estate agent to deal with, and you also don't have to go through the frustrating process of trying to sell the home yourself. 

You're almost guaranteed to sell your home

We buy houses in almost any condition -- even if it is virtually uninhabitable. Because of this, you are almost guaranteed to make a sale on your house. 

How Do House Flipping Companies Work?

If you decide to sell your home to a house flipping company, the process if fairly simple. 

First, you'll contact the company and ask them to make an offer on your home. They'll then show up to check out the home. After doing some appraisal work, you'll receive an offer that you can either consider, accept, or reject. 

You're under no obligation to accept the offer if it's not what you were hoping for. The final decision is always up to you!

What kind of houses do these companies buy?

We buy houses companies often emphasize their willingness to buy "ugly" houses. So what makes a house ugly?

Rundown homes that are not visually appealing, have been damaged by water, termites or other pests, or have foundation issues are often deemed ugly.

A home might also be considered ugly if it is in an inconvenient location or an undesirable neighborhood.

House flipping companies also buy homes from people who are unable to refinance, are facing foreclosure, or have difficult renters. 

How Much Money Will You Get?

Some people avoid selling to flipping companies because they don't want to settle for less money. Keep in mind, though, that taking a smaller sum can be worth it if you need to get out of your home quickly or don't have the time to devote to improving and selling it through traditional channels. 

When house flipping companies calculate how much they are going to offer for your home, they take many things into account. Some factors they consider include:

• Current condition of your home
• Cost and type of required renovations 
• Time required to complete renovations
• Cost to keep the property during the repair process
• Estimated value of property after repairs are finished
• Commissions required to sell the home after purchasing

When all is said and done, you'll usually receive between 60 and 80 percent of the house's market value.

In many cases, this is a pretty fair trade-off for not having to jump through any of the hoops that come with traditional real estate. 

What Kinds Of Homes Do House Flipping Companies Buy?

In addition to typical single-family homes, house flipping companies often buy and sell condos, townhouses, duplexes, multi-tenant properties, and some commercial properties. 

Pretty much the only type of home we won't buy are mobile homes. 

Who Should Sell To A Flipping Company?

While anyone can take advantage of the services house flipping companies offer, certain types of people typically sell their homes in this way.

Those who benefit the most from flipping companies are often those who want to sell their home quickly. Included in this list are:

• People who have inherited a property but don't want to pay to maintain it
• People who have a rental property with difficult tenants
• People who need to relocate quickly
• People who are going through a divorce and need to liquidate assets
• People who are behind on mortgage payments
• People who are facing foreclosure
• People who don't want to invest in repairs
• People whose listings have expired
• People who have declared bankruptcy

As we said, anyone can sell to a house flipping company. However, if one of the above situations applies to you, this type of sale might be the best option. 

Contact Us To Learn More

If you want to know more about our company and why/how we buy houses, contact us today!

Ask any question you want. We can give you information about house flipping in Kansas City, take you through our specific process, or even just prove that we're a legitimate company. 

We'll always get back to you within 24 hours and will help you decide if selling to us is the right option for you!

Why Should I Sell My House For Cash In Kansas City?

Selling a house can be a long, tough process. 

In Kansas City's current market, which is forecast to be slow compared to the rest of the country, it might be even tougher. If you are among the many Kansas citizens looking to move this year, you should be thinking "how can I sell my house for cash?"

Selling for cash has a number of advantages. The sale can be processed faster, and you save a ton on realtor fees.

So how do you know if selling for cash is right for you? This article will break down the facts and make sure that you get the most bang for your buck, fast!

Fast Money When I Sell My House For Cash

The biggest advantage of selling your house for cash is the speed of the sale.

Instead of weeks or even months of house showings and negotiations with buyers, selling your house for cash means you get your money fast.

If you have got to move, or need cash quickly for any other reason, selling your home this way could mean getting your payment in as few as seven days instead of months of waiting.

Avoid the Difficulties of Selling a Rundown House

Does your home have some serious issues that would turn most buyers off?

Issues with plumbing, electricity, mold, or even just ugly design can make it seem impossible to sell your home for a fair price. These issues can seriously impact the market value of your home, and make buyers wary. 

People looking for a cheap fixer-upper or simply a property to demolish and rebuild on the lot won't be willing to pay high prices. 

Fixing your home up to prepare it for sale is time-consuming and costly. You need to think about buying materials such as paint and new light fixtures, or even hiring professional contractors. These expenses can add up fast!

Plus, if you are inexperienced with home repairs, trying to flip a house — even your own — can cause you to lose much of the money you invest in repairs.

The buyer will know exactly how to make the repairs and fix up the house cheaply, so they are willing to buy a less that perfect house. By choosing to sell for cash rather than trying to fix the problems yourself, you can pass all the renovation costs onto the buyer.

Instead, selling your home for cash to a fair agency means you can get a good price without having to deal with all the added stress, work, and expense. 

Deals Don't Fall Through When I Sell My House for Cash

One of the most frustrating parts of selling a house is when a sale falls through because the buyer couldn't get a loan, or backed out at the last moment. 

All the expense and time you put into staging the house and negotiating the sale have basically gone to waste. Plus, you might even have had to turn down other offers, only to be left right back at square one.

When you decide "I want to sell my home for cash," you will only be dealing with a buyer who already has the money to purchase your home up front. 

This means that once you accept an offer, there is a far less likely chance that the deal will fall through. 

Easier Negotiation Process with Cash Sales

When you deal with a company that will buy your home for cash, you will typically have a much smoother negotiation process. This company has handled this process before, and the right company will want a fair outcome for both parties.

This shared goal can make for a much smoother negotiation process than you might experience in a sale to regular buyers. Instead of the tricky, detailed negotiation between real estate agents, you can get a fair sale decided without a lot of back and forth.

Leave Behind Costly Real Estate Commissions

When you sell your home through a real estate agent, there will always be a large chunk of the sale price that goes to cover other expenses. This means that the full value of your home won't be going into your own pockets. 

Instead, a percentage of the sale price will go to paying your estate agent. Their commission is generally around 5.1% to 6%. As the seller, you're usually responsible for paying all of it, half to your real estate agent and half to the buyer's agent.

So, if you're selling your home for $400,000 and the commission is 5.1%, you will be paying $20,400.

Add all the other costs associated with selling a home and any fees that might be charged for staging, photography, and advertising, going with a real estate agent can be costly. And, if your house doesn't sell quickly, these costs will keep adding up. 

If you decide to sell your house for cash, you can avoid all of these extra costs and problems throughout the process. In fact, we don't charge any commission or costs. The only money that changes hands is when we pay for your house in cash.

From the quote to the offer to the sale, you'll know how much money you'll have in your pocket at the end.

Getting Help to Sell My House for Cash

It is not surprising if these many benefits made you decide "I would like to sell my house for cash!"

The next step is getting started with a quote. With a free quote, you can get a better idea of how much your home is worth and whether selling for cash is right for you.

As experienced home buyers, we can help you through the process of selling your home for cash, fast. We will see what we can do to help you achieve your goals with a fair offer.  

Do you have more questions about the process of selling your home for cash? Want to know more about our process, or any explanation of your quote? Contact us today to find out more.