The True Cost of Selling Your Home
Rumana Jabeen • July 5, 2023
There are many expenses to consider when it comes to selling your home. These expenses may include: capital gains tax, home preparation, various fees – including commission – mortgage payoff, etc. Many of the fees are negotiable. Some sellers would like to skip certain costs, like commission, altogether. Be careful though. Homeowners who go the FSBO (For Sale by Owner) route often struggle with tasks like preparing the home, pricing it accurately, and managing paperwork. One may believe they are saving by not owing commission, but real estate agents provide invaluable support in various ways:
- Managing Liability and Legal Considerations: Selling a house involves numerous mandatory disclosures and regulations. Handling all the paperwork and legal aspects without professional guidance exposes home sellers to potential liability risks and legal complications. Real estate agents are well-versed in the contracts, disclosures, and regulations necessary during a sale. Their expertise minimizes the risk of errors or omissions that could lead to costly legal disputes or expensive delays.
- Market Knowledge: Real estate agents possess comprehensive knowledge of pricing and the housing market. Determining the appropriate asking price for your property requires understanding local real estate market conditions, recent sales data, neighborhood trends, and current demand. Agents have access to comprehensive market data and the expertise to analyze it accurately. Selling your house without this information puts you at risk of overpricing or underpricing, leading to an extended time on the market or leaving significant money on the table.
- Marketing and Exposure: Effective marketing plays a vital role in attracting qualified buyers to your property. Real estate agents have access to various marketing tools and platforms, such as MLS listings, professional photography, virtual tours, and extensive professional networks. They can create compelling listings that showcase your home’s best features and reach a wider audience. Selling on your own may limit your exposure and ultimately result in fewer potential buyers, less opportunity to negotiate, and a lower sales price. My own marketing typically brings a home 6-8% over the list price.
- Negotiations and Contracts: Negotiating the terms of a home sale can be challenging, particularly when emotions are involved. Without an agent, you assume the responsibility of negotiating with the buyer, the buyer’s agent, the home inspection company, and the home appraiser. Rather than managing these interactions alone, real estate agents act as intermediaries, skillfully negotiating on your behalf and ensuring your best interests are protected. Their experience in handling tough negotiations, counteroffers, and contingencies is invaluable. After receiving offers, I typically negotiate another 2-4% higher (which my clients love).
In conclusion, while selling a home on your own may initially seem appealing, the challenges that arise can quickly become overwhelming. The expertise that a real estate agent brings to the table is crucial for a successful sale. Instead of embarking on this journey alone, it is advisable to have an expert on your side. With the right agent, you will likely make much more money, avoid hassles, and keep yourself out of legal jeopardy.
Pricing your home correctly from the start is crucial for a quick and successful sale. Learn why overpricing can backfire and how a strategic price can attract more buyers and better offers.
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Your Simple Referral = A Chance to Win a $1,000 Ritz Carlton Gift Card! At Rumana's Realty, we believe that great service is worth sharing. That’s why we’re excited to announce our referral program, open to everyone! If you know a neighbor, loved one, or colleague who is considering buying or selling a home, Rumana is here to help them navigate the process with expertise and care.
If you’ve been hesitant to list your house because you’re worried no one’s buying, or if you’re a buyer watching the market to understand the best time to buy, here’s your sign it may be time to talk with an agent. With falling mortgage rates bringing more buyers back into the market, now is the perfect opportunity for both sellers and buyers to make a move!
Many potential buyers are holding off on purchasing a home, anticipating that mortgage rates will drop even further. The common belief is that lower rates will make homes more affordable and provide better financing terms. This wait-and-see approach is based on the hope that a lower rate will save money over the life of the loan and make homeownership more attainable.
Our recent travels took us on a journey through three distinct landscapes—each offering its own unique experiences and memories. From the bustling streets of Atlanta to the serene beaches of Santa Barbara, and finally, to the rugged trails of the Sierra Nevada, it was a trip full of relaxation, exploration, and a few surprises along the way.
If you received our postcard, you may have noticed that the arrows indicating year-over-year changes from 2023 were accidentally omitted during the printing process. We regret any inconvenience this may have caused. Please refer to the versions below for year-over-year comparisons. For a deeper dive into our mid-year market update, explore the expanded report below.
The seasonal impact on the market is as you might expect, a little slower. With many leaving on vacations, the number of homes on and coming to market reduces and open houses aren’t as packed. That doesn’t mean the market is on vacation though; quite the opposite! There's a wave of new buyers entering the market alongside those already in the market.
