What does it Cost to Sell my House?

Real estate is usually your largest asset so selling your home is all about the bottom dollar.  You need to know all of the expenses incurred before you can make an informed decision.  Taxes, closing fees and commissions could add up to 10% or more of your sale price. Each state has specific fees but here is what you can expect in Indiana. Agent Commissions: Realtors in Indiana are all independent contractors and can set their own fees.  There is no standard fee across the board and some Realtors work for a flat fee instead of a percent of the sales price.  I have seen anywhere from 3% to 8% of the sales price charged by the listing agent based on what services the Realtor will provide.  When a home is listed on the MLS the listing realtor must offer the buyer’s Realtor compensation for representing the buyer. Staging and Property Prep: Spending some time and money preparing your home for sale could add dollars to your bottom line.  The National Association of Realtors says “Our study proves it does not benefit the homeowner to list their property first to see if it will sell,” according to RESA. “When [home owners] invest in staging before listing, they sell 87 percent faster.” Plus, home owners have the potential to save more than $4,000 in carrying costs by staging first,”  Depending on how much staging you need these costs can venture into the thousands of dollars. On average you can expect $1500-2500 for an occupied home and $2500-4000 for a vacant home. When preparing to market a home for sale and before you allow buyers to tour it there a few you things that are needed.  Make sure the home is tidy, this includes the closets, basement and garage. Get rid of any clutter that you do not need for daily living.  The home will feel larger and the buyers won’t be distracted by stuff.  Make sure to neutralize any orders.  Pet, food and cigarette smells can be a big deterrent for buyers.  Fresh paint and carpet cleaning go a long way in getting you more bang for your buck.  Lastly make sure the outside is inviting.  Trim any overgrown bushes, clean out dead plants and try to add a pop of color in the landscaping.  Cleaning the gutters and knocking any cobwebs down will also help appeal.  The current condition of your home will determine the amount of time and money you will need to spend before listing your home. Taxes:  In Indiana our taxes are paid one year in arrears.  That means when you pay your tax bill it is for the previous year.  We also pay biannually in May and November.  When you sell your home plan on paying for a full year’s worth of taxes, plus the months since the last bill was paid.  Example: if you sell in April you will owe 12 months + 5 months because the last bill was paid in November.  This is called prorating the taxes and will be credited to the buyer at close so they can pay the taxes for the previous year when they did not own the home.  Your cost will be based on the current assessed value of your home. Title Fees: The title company reviews title, issues insurance policies, facilitates closings, and files and records paperwork.  There are three main fees that title companies charge.  The closing fees – for facilitating the singing of closing documents. This can be as little as $250 up to $1000 depending on the company.  The title search and examination fee– for searching public records and finding any liens attached to the property usually $350-$500 and the Owner’s Title Insurance – and insurance policy protecting the buyer of any missed liens, clouds or encumbrances. The cost depends on the sale price of the home.  Lastly each state has their own required recording and government fees usually totaling about $100 in Indiana. Closing and title fees cloud total up to  $1600-2000 depending on the sales price of the home. At the end of the day it can be very expensive to sell a home. After paying for repairs, staging, real estate commissions and closing fees you could end up spending tens of thousands of dollars.  I didn’t even touch on the repairs that may be required after inspections or buyers asking for assistance with their mortgage fees.  If this all sounds too expensive and overwhelming give me a call.  I buy homes directly and I pay all of the fees.  I’ll even pay the prorated taxes. You can reach me directly at 317-854-6291 with any questions. You can also fill out the form for a fast, no obligation, “as is” offer. You will receive an offer within 24 hours of your request.