When you want to expand your family, or you’ve accepted a job offer in another state, you may be ready to list your house. Although it can be exciting to make a profit off of the home if it’s increased in value, it can be easy to forget that selling the home also comes with a price tag. If you’re ready to find a buyer, it’s important to be aware of how much it costs to sell a house in Phoenix before moving forward with the process to avoid surprises or disappointments.
Hiring a Real Estate Agent
According to listwithclever.com, selling a house through a real estate agent can cost thousands of dollars more instead of selling it yourself. Realtors earn an average commission of 5.5 percent, which can equal $16,000 if the selling price is $297,000.
Some sellers prefer to list the house without a real estate agent to save more money on the cost of selling a home. This step can be risky because you may not have experience with marketing your house or pricing it correctly. You may also not be aware of what buyers are currently looking for, which can make it easy to forget to stage it correctly. It can be worth the cost of hiring a real estate agent because they have the negotiation skills to help you earn a higher profit. They can also help the house sell quicker because of their marketing skills, which can allow you to earn more in the long run.
Staging the Home
Staging the house is recommended by real estate agents because it can allow potential buyers to envision living in the space. Staging the house with rented furniture can also provide potential buyers with ideas on how they can use different rooms of the home. Staging costs one percent of the value of the house, which can be an average of $3,000. Although it may cut into your profit, it can also make it easier to sell the home quicker and for a higher price.
Repairs and Renovations
Performing repairs and renovations to your house are often necessary if it’s an older home or if you’ve lived in it for several years. Most buyers don’t want to buy a house with defects and require extra work to be performed, making it necessary you do the work yourself before you list the house. There may also be contingencies from the buyer after they make an offer, which you must complete to close on the home and complete the sale.
Repairs and renovations can include everything from replacing missing shingles on the roof, addressing water damage in the basement, or fixing leaky faucets. The cost varies, depending on the condition of the home, is an average of three percent of the home’s value. If the house is valued at $297,000, you can expect to pay $9,000 to improve the home’s condition and make it more appealing and attractive to buyers.
Consider the Cost of Relocation
It’s also important to consider the cost of relocating once you find a buyer and sell your house. It can cost thousands of dollars to pack up your belongings and transport everything to a new property. Relocating to a new house is an average of two percent of the price of the home because of the belongings that are stored inside.
Relocating costs often include purchasing moving boxes and hiring professional movers. If you plan to do more of the work yourself, you’ll need to pay for the cost of the moving truck and any moving equipment you need to rent.
Consider How Much You’ll Make on the Sale
The cost of selling a home can prevent some people from listing their property on the market. It’s important to consider how much money you’ll make and pocket once you find a buyer. The equity that you’ve acquired over time and how much the home has appreciated since you first bought it will determine if you come out ahead and if it’s enough of a profit to make it worth relocating. Crunch the numbers in advance to determine if you can afford to list the house.