Selling a house can be a costly endeavor, especially in a competitive market like Eugene. As a seller, you want to get the best value for your property while also ensuring a smooth and hassle-free transaction. However, it is important to consider all the costs associated with selling your house in order to make informed decisions about your investment. In this blog post, we will explore the various costs that you can expect when selling your house in Eugene and a few things you can do to lower them.
Real Estate Agent Commission
One of the biggest costs associated with selling a house is the real estate agent commission. In Eugene, the standard commission rate is around 6% of the sale price, with 3% going to the seller’s agent and 3% going to the buyer’s agent. This means that if you sell your house for $500,000, you can expect to pay $30,000 in commission fees. This number is not always taken into consideration when selling and it can take a huge cut of any potential profits.
It is important to note though that commission rates can be sometimes be negotiable, and some agents may be willing to work with a lower commission rate. Additionally, an alternative option to selling your home with a traditional real estate agent would be reaching out to a professional direct buyer such as Property Bridge.
Closing Costs
Another significant expense that must be considered when selling your home is closing costs. These costs typically range from 2% to 5% of the sale price, and they include such fees as title insurance, attorney fees, and transfer taxes. When you think about that $500,000 house, you can expect to pay between $10,000 and $25,000 in closing costs.
Again, it is important to keep in mind that closing costs can sometimes be negotiable, and some sellers may be able to work with the buyer to split these costs or have the buyer cover them entirely. When you sell your house directly to Property Bridge, you won’t have to worry about closing costs at the end of the sale. We handle all fees and costs throughout the transaction.
Home Repairs and Upgrades
Before putting your house on the market, it is important to consider any necessary repairs or upgrades that may be needed to attract buyers and get the best value for your property. Some repairs may even be necessary to make your home financeable for a buyer to apply for the needed loan from their lender. These costs can vary greatly depending on the condition of your house and the extent of the repairs needed.
These are some common issues and repairs that a homeowner may face when selling:
– Repainting the interior or exterior of the house
– Replacing outdated fixtures and appliances
– Repairing any structural damage
– Upgrading the landscaping and curb appeal
-Repairing the roof or installing a new roof
It is important to keep in mind that these costs can add up quickly, and it may be necessary to prioritize which repairs and upgrades are most important in order to stay within your budget or making the house financeable. While you may not need to repair everything on your list, but you’ll want to fix up the property enough to make it competitive and comparable to similar homes on the market. Property Bridge will buy your house as-is, allowing you to not worry about any repairs and focus on whatever your next steps need to be after selling your home.
Staging and Photography
In order to make your home more marketable to attract the most buyers and showcase your house in the best possible light, it is usually necessary to invest in staging and professional photography services. Staging involves arranging your furniture and decor in a way that highlights the best features of your house by giving each space depth without clutter. If you are packing your home it may be the case that you’ll want to rent any needed furnishings to complete the staging. Professional photography is one of the most important things needed to market your house properly and to have it stand out in online listings. The camera phone isn’t going to cut it.
Staging and photography costs can vary depending on the size and condition of your house, but you can expect to pay between $500 and $2,000 for one or both of these services. As with all the previously mentioned costs, staging and photography can be completely avoided when you sell to a direct buyer.
Marketing and Advertising
Marketing and advertising are absolutely crucial for getting your house seen and in front of potential buyers and for creating interest in the property. This can include online listings on multiple platforms, printing flyers and brochures, and open houses and other events. It may take all of these methods being done repeatedly to find the right buyer for your home.
Marketing and advertising costs can vary depending on the length that your home stays on the market and who and what methods you choose to use. However, it is important to consider these costs when budgeting for the sale of your house, as they can add up quickly and sometimes be overlooked from the onset of the sale.
Taxes and Fees
It is important to consider any taxes and fees associated with selling your house. You may have to pay a transfer tax, which is a tax on the transfer of real property, along with any property taxes owed. Capital gains taxes may come into play if you stand to earn a substantial profit on the house or how long you’ve owned the home. Additionally, if you have a mortgage on your house, you may be responsible for paying prepayment penalties or other fees associated with paying off the mortgage early. It is important to check with your lender to have them remind you of the terms of your current loan.
Time
The last cost to think about is your time. Every step of selling your home takes some element of time. When staging and scheduling showings you may need to set aside time to clean and reset your house between each appointment. If you have a list of needed repairs will you be taking them on and giving your time to them or will you be paying a contractor to do so? A contractor may be scheduled far out and not be immediately available. Also, do you need have time to potentially wait for your house to sell on the market? Some properties can take months before the right buyer comes along and even then they may find something that causes them to pull out of the sale, which could force you back onto the market or make costly concessions.
Selling a house can be a complex and costly process, and it is important to consider all the expenses associated with the sale in order to make informed decisions about your property. By taking into account the costs outlined above, you can create a budget and plan for the sale of your house that is in your best interest. In some cases, a traditional sale may not be right for you. Do you have questions? We can help! Call our team today to learn more! (541) 833-0304