Comparing your different options can be helpful when making a decision about how to sell your home. We all know the saying, “A penny saved is a penny earned,” so let’s take a look at how much you could be saving by using alternative methods!
What are my options?
When it comes to selling your house, there are three popular paths for homeowners in Colorado Springs: putting your house on the MLS (multiple listing service), selling on your own, or working with a direct buyer. The MLS is an online real estate database where many different agencies post available houses for sale. Next, you have the option to sell directly which means advertising and marketing your property yourself to find potential buyers. Lastly, you can sell to a direct buyer who will purchase your home without ever putting it on the MLS.
Costs Of Listing
Investors can use various different clauses in their contracts. I like to include a clause that allows me to purchase the home before the deal closes if the agent isn’t helpful. This also helps clear up any confusion or issues with potential buyers.
6% of the sales price – Average fee charged by agents in Canada according to this survey.
Often, you are required to market your own homes. Agents will sometimes provide MLS listings for free so it’s worth asking them about their marketing services and what you should do yourself.”
“You can expect other expenses related to selling the property, including legal fees, land transfer taxes, moving costs, various administrative costs, etc.” Note: These other expenses are not necessarily an investor’s responsibility as they are not typically part of the listing agreement.
Listing your property on Zillow is free but the upgraded features do cost a fee. The standard listing looks great and has all of the information you’ve included in your MLS listing but there’s no “For Sale” sign-up, no photos – it cannot be found outside of our office unless buyers bring in a flyer from the office or call for more info.
Making necessary repairs before listing the home can be very beneficial to the seller. Either way, determining what repairs are necessary and who will make them can be a difficult decision.
Hire A Structural Engineer
A structural engineer is one of the best resources for home sellers. They offer insight on how your property’s value will be impacted by repairs or whether you would like us to write an article about your property. If you hire an independent engineer they can provide more objective information, but if you use an agent “preferred” structural engineer – expect – bias – as their main priority is providing you with a quick sale at full price.
Cleaning And Staging Costs
Most sellers will have their homes professionally cleaned before putting them on the market. Many will remove personal belongings and clutter, storing all unnecessary things elsewhere. Some will even hire a professional stager to come in to make the house look as if it came out of the pages of a magazine.
Thinking about the closing costs as 2% “added” to the final price of the home makes it easier for buyers to understand.
For example, if your closing costs are $4,000 and you are purchasing a $200,000 home, your total out-of-pocket cost at closing would be $204,000 (including the down payment).
Continued Ownership Costs
Adding up these costs is especially important if you are planning on listing your house for sale in two to three years.
There are many expenses that will be incurred while owning a home, but the most common include taxes, insurance, utilities (electricity & water/sewer), maintenance & repairs, and mortgage interest. However it is important to note that every state has different tax rates and each city has its own utility rate structure which determines how much homeowners pay, so these numbers could vary depending on where you live!
Costs of An FSBO (For Sale By Owner) Listing
Selling your home yourself can be a good option to save some money, but you’ll want to budget for these expenses.
Survey Costs: $300 – $500 Depending on the size of your home and the cost of the survey in Colorado Springs, a survey will typically run between $300 and $500. When hiring a real estate agent, most will require that their clients get a survey done before they list the house with them. This protects both parties from liability issues that could arise if there were any damage or structural problems found after an offer was accepted.
Heightened Marketing Costs
You will have to make sure your house is in tip-top shape for showings. You can’t expect potential buyers not to look at the little things. Fixing nicks and cleaning up clutter will make a big difference in getting people through the door — if it doesn’t run them off entirely! If you are showing your home on short notice (i.e., less than three days), you might even want to opt for an inexpensive alternative like Rent My Dust.
House Preparation Costs
Staging the home properly can result in a higher sale price.
Inventory of Contents
To prepare for the sale of your home, you must have an inventory of all items inside it, down to small knickknacks and kitchen appliances. If something happens to the house during the sale process, you will need proof that what is being damaged was already yours, otherwise, your buyer’s insurance may not cover any losses. For high-end homes where everything inside might be worth more than the cost of the home itself, consider hiring a professional appraiser or even a reputable antique dealer to help price and list smaller items.
The Price Of Your Time
Why bother going the FSBO route if you’re going to struggle with all of those time-consuming tasks?
At HBR Colorado, we eliminate the stress and challenges involved in selling your home by handling everything for you. Our goal is to make your life easier! We take care of marketing, sales, negotiations, and paperwork from start to finish so you don’t have to worry about a thing – except moving into your new place!
Costs of Selling Directly
Saving costs when listing your property on the market will save you money in the short term, but it can also help your property sell faster and for a higher price.
In other words, imagine that you have chosen to sell your house yourself by listing it on the market with HBR Colorado–a process that will take several months. In this scenario, standard practice calls for HBR Colorado to charge fees ranging from 5%-6% of the sale price of your home. If you list directly with us, we can potentially eliminate these costs and help get a quick offer, all while paying a guaranteed closing fee of only 4%.