Most people don’t know that, when selling your house, there are costs involved, which means that you do not pocket the full sales price. In some cases, putting your house on the market alone will cost you more than what you may expect. Let our team here at SellUsHomes point out some of the most common fees involved in selling your property, so you can have a better idea before doing anything that you might regret.

PREPPING FOR THE SALE

Home inspection

$278-$390

This price is based on the average cost for US homeowners when they hire an inspector to do the job. Although this is optional, it still is a very important process a Seller can do, to find out if there are any structural or mechanical problems that you yourself may not even know about. This will allow you to make repairs ahead of time, before you even place the property up for sale. This will help you from getting blindsided with a low ball offer because they found an issue with your property during home viewing. In cases where a Buyer hires their own home inspector, you can at least be confident that everything has been taken care of already.

Home improvements and renovations

If, after an inspection, there isn’t any need to make major renovations or improvements, then good for you! That’s less money to take out of your pocket. But for the sake of this argument, let’s base the cost on the 1% rule.

A popular real estate notion states that 1% of the value, or purchase price of your home is set aside each year for maintenance and improvements (although there are several limitations to this rule). The average price of homes across Detroit is roughly $80,000. Based on that price, you would set aside $800 for repairs. Again, the amount varies from one situation to another. 

Landscaping

Your curb appeal is also a key factor similar to your home’s interior. After all, this is the first thing a buyer sees when they view the property. The cost for this depends on the project. If your property’s exterior is well kept to begin with, you might just need to do some basic trimming or lawn mowing, which can be around $25-$50. Generally speaking, landscaping services will cost you somewhere in the neighborhood of about $4-$12/sq ft.

Staging

1% of the sales price

Buyers will want to envision themselves living in the home once they enter it. Staging the house helps them focus on the best features of your household and make it visually appealing to your buyers. Hiring a professional home stager may cost you thousands of dollars so a good alternative would be staging the house yourself. Though you’ll have to invest a lot of work to prepare and maintain the place every time a buyer comes, it is worth it. Adding new light fixtures, deep cleaning any carpets, or a new paint job is more than enough to attract your potential buyers – increasing the home’s value! 

Concessions

2%-5% of the asking price

A concession, to put it simply, is money the Seller is willing to give to the Buyer to help with the financing. It effectively lowers the net amount the Seller will receive for the sale. On the plus side, it may help close the deal. Again, based on the average price of homes in the Detroit market ($80,000), a seller’s concession will typically be around $1,600 – $4,000.

CLOSING THE DEAL

Closing costs

1%-3%

A real estate transaction will include costs when legally transferring the property. There’s a vast assortment of fees involved but in general, it may cost you 1%-3% of the sales price. Let’s tackle some of the common closing costs starting with:

  • Transfer taxes

These taxes are those involved when transferring the title of the property from one person to another. The amount depends on you local and state laws, or whether you’ll be charged taxes on the sales transaction. In Michigan, the transfer tax is divided into state tax and county tax.

The state transfer tax rate is $3.75 for every $500 of value transferred. While the county transfer tax rate is at $0.55 for every $500 of value transferred.

  • Mortgage payoff

This depends on how much you still owe on your current mortgage. It needs to be paid off when you sell your house. Some lenders charge a prepayment penalty if you pay off the mortgage before the end of its term. The penalty amount is usually based on a percentage of the remaining mortgage balance.

OPTIONAL: Moving costs

This isn’t completely related with costs to selling your property. However, you are selling your home after all so you have to spend some cash in moving to a different location, whether a new home, or temporary housing. On average, moving costs will be 1%-2% of your sales price of you consider transition and overlap along with it.

Let’s see a summary of the fees that we’ve discussed so far:

Sales Price (Detroit Average)

$80,000

Cost

% of sales price

  Preparation

   Home Inspection

$390

~1%

   Home Improvements and Renovations

$800

1%

   Landscaping

$800

1%

   Staging

$800

1%

Negotiation

   Seller’s Concession

$4,000

5%

Closing

   Closing Costs

$2,400

3%

*Optional

   Moving Costs

$1,600

2%

TOTAL COSTS

$10,790

As we’ve mentioned, the amount varies on several factors but these are the common ones you would most likely encounter when you sell your home. For first-time sellers, they might be in for a surprise, when they realize the different costs a Seller will incur when selling their house. 

If only there was a way to sell your house AS IS.

Well, guess what? You’re in luck! SellUsHomes is a non-judgemental buyer who does just that! NO repair costs, NO realtor expenses, NO closing costs, and NO escrow fees. If you want to know more, contact us now at (734) 224-5947 or send us an email on info@sellushomes.com.

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