6 Hidden Costs of Selling Your House Through a Realtor
6 Hidden Costs of Selling Your House Through a Realtor
Selling a house is a notoriously difficult task, which is why most people tend to use a realtor or real estate agent to get the job done. While this does make the process easier, because the realtor handles the details and legwork, there are several hidden costs that go along with using a realtor or real estate agent to sell your house. Here are a few of the biggest hidden costs of selling a house with a realtor or real estate agent.
What are the Hidden Costs of Selling a House with a Realtor?
Home Inspection
First on the list are home inspections. Real estate agents will rightfully tell you that getting your own home inspection done before listing the house is a great idea. It allows you to find and make any necessary repairs throughout your property before the potential buyers find them. Unfortunately, this means that if you plan to sell your home with a realtor or real estate agent, you will need to spend money before you can make money.
Additional inspections may include:
- Radon
- Termites
- Mold
- Asbestos
- Septic
- Well
Average Cost of a Home Inspection: $263 - $353
Making Repairs and Renovations
Inevitably, home inspections lead to home repairs. Whether it be a new roof, HVAC system, or replacing some carpeting, necessary repairs add up quickly. While many of these costs are made up in the value they add to your home, it ultimately comes down to the buyer. In fact, the buyer may have a list of necessary repairs for you to make depending on their own inspection.
Common repairs and renovations include:
- Roof repair or replacement
- HVAC
- Electrical
- Bathroom renovation
- Kitchen renovation
- Pet damage
- Water damage
Average cost of home repairs and renovations: $3,994 - $19,883
Professional Staging and Cleaning
Another hidden cost when selling your house through a real estate agent comes down to presentation. Professional staging and cleaning services help prepare the house to be shown, ensuring that potential buyers see the house in the best possible condition. This additional cost comes right out of your pocket.
Average cost of professional staging and cleaning services: $516 - $1,946
Real Estate Commissions
Selling a house through a real estate agent or realtor includes the large hidden fee of their commission at the end of the sale. Selling houses is a service and real estate agents expect to be paid. Before the sale, realtors negotiate or disclose their commission percentage. Real estate commissions vary throughout the country, depending on the number of listings in the area, so it’s important to research the average prices in your area.
National average real estate commission: 5% - 6% of the sale price
Closing Costs
At the end of the sale for your house, when going through a real estate or realtor, there is a last lump of fees to take care of; these are the closing costs. The closing costs of a home are made up of a number of different fees, including escrow costs, title insurance, and a transfer tax. The closing costs also include any outstanding liens or bills on the house. Typically , the closing costs come right out of the final sale price of your home, putting a dent in the amount of money you were expecting to receive.
Average closing costs in Michigan: $2,007 - $8,028
Time
The last, and maybe the most devastating, hidden cost of selling your house with a real estate agent is the cost of time. Selling a house with a real estate agent takes time. Once your home is listed, it’s up to the realtor to find the right buyers through showings and open house events. If you decide to move out before selling the house, you are still responsible for a number of monthly fees, including landscaping and lawn maintenance, utilities, insurance, and mortgage payments.
Average time to sell a house in Michigan: 66 days
Avoid Hidden Costs of Selling Your House with a Cash Offer from Forged Homes
The best way to avoid the hidden fees of a real estate agent is by finding an alternate way to sell your house. Forged Homes offers cash for houses throughout Michigan, no matter the condition. By choosing Forged Homes, you can avoid home inspections, repairs, staging and cleaning, real estate commissions, and closing costs. The best part is that Forged Homes works fast to get you a fast and fair cash offer on your house.
Call (313) 552-8608 or send us a message to get a hold of a Forged Homes representative today and set up your free consultation. Follow us on Facebook and Instagram to keep up with the latest news and deal from Forged Homes. Check out our blog for the latest tips and tricks for homeowners throughout Michigan.