If you are thinking about listing your house in Houston, TX and Surrounding Areas, make sure you are prepared for these hidden and often unexpected costs! Keep reading to learn what to watch out for and ways to save your hard-earned money!
Selling a house in Houston, TX and Surrounding Areas can get expensive quickly when you hire a local agent and list the house on the MLS. A smart seller will consider the costs before spending a dime to really evaluate if the expenses are worth it. In some cases, selling your Houston, TX and Surrounding Areas house to a direct buyer can be the better choice. Give Jordan Property Buyers a call today to find out if listing your house or a direct sale will be the best choice for your situation.
If you do opt to list your Houston, TX and Surrounding Areas house, watch out for the costs listed below!
When listing, people know closing costs are out there, but they aren’t always sure what to expect. In fact, the numbers vary from house to house. Closing costs will include things like origination charges, transfer costs, inspection fees and more. Most homeowners will pay anywhere from 2-5% of their final sale price in closing costs. If your house is $200,000, you will need to pay anywhere between $4,000 and $10,000 upon the sale of your house.
Agent commissions will typically cost you around 66% of the final sale price of the house. However, many agents will have administrative expenses that they will tack on top of that. This includes things like copies, printed materials, sandwiches for an open house, listing services, etc. Some agents take care of it all, while others will charge you for everything under the sun. If you decide to list your property, be sure to review the agreement before you sign. You could find yourself spending far more than expected.
Staging & Curb Appeal
Getting a house ready for photos, showings and open houses can get expensive quickly. All of you personal belongings should be put away in order to achieve the greatest effect. That means no stashing everything in the closet… people are going to look there. Some homeowners will find themselves paying for a storage space while their house is listed, keeping only their necessities at the house with them. This makes for easy clean-up and an easier move when the time comes.
Of course you can’t just focus on the interior of the house. After all the yard is part of the package, also known as curb appeal. So it must be in tip-top shape and look amazing to anyone passing by. That can take some work and some out of pocket cash to get things where they need to be. And you’ll need to maintain the yard as long as your house is listed. Curb appeal is a huge influencer for people getting ready to buy. Don’t miss out on a potential buyer because your yard looks messy.
Painting is one of the first things many homeowners will do before listing their house. It is a relatively simple upgrade, that can have a big impact on the appearance of the house. Most people will opt to hire a professional to handle it as painting the whole house can be quite an undertaking and sometimes overwhelming. Others will choose only to do certain rooms to be mindful of costs. Repainting your entire house can ultimately set you back thousands. It’s one of the first repairs you will be told to make. It sounds easy enough, but after you consider the costs of repainting the entire home, your wallet could be a few thousand dollars lighter.
Sure, you can do a pretty good job cleaning your house. But do you really want to scrub the walls, baseboards, and the dreaded oven? Many people hire professional cleaners, who will specialize in “move-out” cleanings. They will take care of everything from top to bottom so you can spend your time elsewhere. If you are not replacing the carpets, it is a good idea to pay to have them professionally cleaned.
Some lenders will charge you if you are paying the mortgage off early. If you don’t know if you have a prepayment penalty, check with your lender for that and any other other costs you will incur when paying off the mortgage. You will likely have to pay recording fees, which will usually run around $75.
Title & Escrow Fees
When listing your house in Houston, TX and Surrounding Areas, you will also need to consider the cost of title insurance as well as a fee to the person holding escrow. This is typically a fee paid to the attorney who distributes funds to each party at closing.