If you are thinking about selling your house, you are probably wondering how much it will cost. To be honest, the final number will depend on several factors like the offer you accept, if you help with your buyer’s closing costs, how many repairs you tackle, and more.
So, to give you a ballpark of what to expect, here is some information on a few of the expenses you will want to be ready for (see graph below):
But here is something that puts those costs into perspective. Most homeowners today have a substantial amount of equity built up in their homes, and that means they stand to make significant gains when they sell. Chances are, you do too. This can help quickly recoup these selling costs. You may even have enough equity leftover to put some toward your next home purchase too.
Let’s dive into a few of the costs from the graph above, so you have a bit more context on what they include and where you may be able to save some money, when it makes sense.
Closing Costs and Real Estate gent Compensation
These are the fees you will pay at the closing table to cover various aspects of the sale. You will have your own closing costs and you may even offer to pay some of the buyer’s as a concession. As U.S. News Real Estate explains:
“Closing costs are fees that are paid to finalize the transaction and transfer ownership of the home to the buyer . . . Sellers can expect to pay 2% to 4% of the sale price of the home in fees and taxes on top of the agent commission. Based on the national median home sale price, this means that closing costs in 2023 for sellers are about $7,740 to $15,480. . .”
Taxes are going to vary by state and agent compensation depend on what you agree upon upfront. And keep in mind, that the numbers in the chart above are just an example, not exact figures. Not to mention, if you put money toward things like your property taxes, mortgage escrow, etc. as part of your current mortgage payments – there is a chance you will get a credit back at closing that can help offset some of these selling expenses.
Pre-Listing Inspection and Repairs
One optional step some sellers take is having a pre-listing inspection. It gives you an idea of what may pop up later on in the buyer’s inspection – because those are the items a buyer may ask you to toss in a credit (or concession) to cover later on.
This allows you to get a jump on any repairs and tackle them before you list, so your house is set up to impress from the start.
Again, if you want to skip this step, an agent can help. They will be able to give you advice on things like paint colors, small cosmetic repairs, what buyers are looking for, and whether it is worth tackling anything else ahead of time. This will help make sure you are spending money on things that are most likely to net you a solid return on your investment.
Home Staging
As inventory grows, you may want to take a few extra steps to make sure your house stands out. Staging is an optional way to make sure your house shows well. It can include bringing in rental furniture if the house is vacant or art to warm up the walls. Some staging can even be done virtually once the photos are taken. But, in general, how much does it cost? According to Bankrate:
“Home sellers typically pay somewhere between $782 and $2,817 in home staging costs . . . but the price tag can vary widely.”
If you want to skip this step, you could opt to lean on your agent’s advice for what looks good and what may feel cluttered. A great agent will suggest things like removing a chair to open up the flow of a room, laying down a rug to add warmth to a space, or taking down photographs to de-personalize strategic areas.
Why Leaning on an Agent Is Key
If you are looking to cut down on your costs, you have options. But be careful of where you trim. You may be able to skip staging or a pre-listing inspection since those are optional, but you don’t want to skimp and sell without a pro.
An agent is your go-to expert throughout the transaction. They will offer customized advice every step of the way, including how to stage the house and what repairs to tackle. This can help you avoid hiring an outside stager or having to pay for a pre-listing inspection.
But that is not the only way your agent adds value. They will also create tailored marketing and pricing strategies that’ll highlight the house’s best assets and any work you did to get the home show ready. And that can actually help your house sell for more in the long run.
Typical Dallas-Fort Worth Selling Costs
Selling a house in the Dallas-Fort Worth (DFW) area involves various costs that can impact the final profit. Homeowners should be prepared for expenses that typically range from 6% to 10% of the home's sale price. Here is a breakdown of the common costs involved in selling a home in DFW:
Real Estate Agent Compensation: The largest expense is often the real estate agent’s compensation, typically around 5% to 6% of the sale price. This compensation is typically split between the seller's and buyer's agents. For a $400,000 home, this means $20,000 to $24,000.
Closing Costs: Sellers usually cover about 1% to 3% of the sale price in closing costs. This may include title insurance, escrow fees, and prorated property taxes. For a $400,000 home, closing costs could range from $4,000 to $12,000.
Repairs and Upgrades: To make the home more appealing, sellers often make repairs or updates. While costs can vary, some homeowners spend between $1,000 and $5,000 on minor fixes or cosmetic updates. More significant renovations could easily cost $10,000 or more.
Staging and Marketing: Presenting the home well can speed up the sale and potentially increase the selling price. Staging costs in DFW typically range from $500 to $2,500, while professional photography and marketing may add another $300 to $1,000.
Pre-Sale Inspections and Other Fees: Optional but recommended, a pre-sale inspection can help identify any issues upfront and costs between $300 and $500. Additionally, moving expenses and potential seller concessions (such as paying part of the buyer's closing costs) could add to the total cost.
These expenses can add up, so it is crucial to budget accordingly and factor these costs into your pricing strategy to maximize your profit. Consult with your real estate agent as they are very familiar with these costs and their impacts on selling.
Bottom Line
Want a better picture of what you should expect when you sell your house? Let’s have a conversation and walk through it together.
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