Before actually listing your home, it is very important to make sure that it is market ready, thus being able to attract more interested buyers. With this said, four primary costs should be taken into consideration as you prepare your home for selling.
The staging costs of a home are usually at ~1% of the actual sale price. When potential buyers initially see your home, you would certainly want them to see the best features of your home as they try to imagine themselves living in the new home. This phase of selling is called ‘staging’. This includes arranging décor and furniture to make your home as visually persuasive and appealing to your possible buyers.
As a seller, you have the option to either stage your home by yourself or hire a professional stager. The usual cost ranges between $2,300 to $3,200. While you may reasonably save money if you personally stage your home, you still have to invest your time in preparing and maintaining your home. On the other hand, if you are going to do it yourself, you might want to consider what you need to buy. This may include buying new furniture, paint, curtains, light fixtures, and decorative accessories.
The beauty of staging? It pays off when you are finally ready to sell. About 29% of real estate agents report an increase of about 1% to 5% in the value offered by the buyers. Home values are also reported to increase at about 6% to 10%.
You may expect the landscaping cost to cover ~1% of the costs. The outer part of your home is as important as the interior, especially when it comes to selling. This is what agents call as the ‘curb appeal’, which attracts buyers, especially those who love shopping online, or those who depend too much on photos for comparison. Landscape maintenance also includes things such as pruning shrubs, mulching or adding some flowers. You may also want to include standard lawn covers, fertilizing and weeding.
At the minimum, landscaping may only cost you just a few hundred dollars if you are doing basic things such as sprucing up your flower beds or reseeding your lawn. The average cost for these things is at $3,239. Still, this may depend on factors such as the size of your yard, as well as the extent of your job.
Home Maintenance and Repairs
Issues involving maintenance and repairs are among the main reasons why some pending home sales easily fall through at closing. Expert sellers recommend making sure that your home is in good condition even before listing so that you can avoid making big concessions to the buyers.
While preparing to sell your home, make sure that you take a look at your home, checking for any damaged features, spaces that need to be cleaned up, or broken appliances. You may even want to have a checklist for every part of your home to ensure a thorough review.
One option that you may want to consider is having a pre-inspection assessment. Doing so can help you in identifying the things that need to be fixed. The overall cost of repairs will depend according to the condition of your home. As you create a list of the needed repairs, you may also want to decide which among these you can do by yourself, and which ones need professional assistance. When looking for help, compare quotes from various contractors so that you can also consider the price range wisely.
Aside from the main repairs, you may also want to take into consideration the renovations that you need to be done to your home. This also includes the budget and the time that you might need to spend on, as well as the possible an expected return on investment.
Studies show that buyers consider the kitchen as among the most important space. Giving attention on smaller renovations which can add value may make more sense than jumping to bigger changes, especially if there are limitations in terms of money or time to spare.
Rather than completing a major kitchen overhaul, why not spend some of your weekends updating your cabinet pulls or creating a new backsplash. These features can attract your buyers while boosting the home value at the same time.
Now that your home is finally ready to be included in the list, your next move may involve waiting for a potential buyer to make that offer. After accepting an offer, you can move to the next part of the selling process, usually involving negotiation with your agent, as well as the buyer’s agent. This may involve a different set of costs to consider.
There are a number of benefits of working with a real estate agent. For one, they do all the legwork for you in terms of selling. This may include arranging tours, working on the papers, updating your listing, as well as other things such as home photography. Note, however, that as convenient as this may be, these services are not really free. Usually, the real estate agent commissions could cover as much as ~5%to ~6% of the actual sale price.
You also have the option to do things by yourself, selling your home without an agent. Still, you are responsible for paying the commission of the buyer’s agent, if they are represented by one.
A concession shows that you have entered an agreement to pay specific costs for the buyer, attempting to close the deal. For instance, your buyer may ask assistance with processing fees, inspection fees, as well as other costs. The market in which you are selling your home may have an impact on what you pay in concessions.
Among other things, there are certain factors that may also be involved in closing the deal. This may include closing costs, transfer taxes, and mortgage payoff. Take note of the buyer’s home warranty as well. You may also want to include in your list of costs the actual expenses you can expect in relocating to your new home.