Listing your home isn’t free. There are costs, chores, and a lot of work that goes into getting your home ready for the market. Before you list your home, think about the time, energy, and money that go into it. If you have a direct buyer, with a great offer, it is often preferred to the hassle and out-of-pocket costs of listing. What it REALLY costs to sell your home in New Jersey.
Commissions, Staging & Yard Work, Oh My!
Costs To Sell Your Home: Cleaning
First thing is first, the home has to be thoroughly cleaned from top to bottom. Windows should be done inside and out, grout and tile cleaned, baseboards and molding, and all of the obscure areas such as window sills and ceiling fans. If you have pets, pay particularly close attention to pet hair and odors. Of course, you can clean yourself, but you will not be able to do it with the accuracy and efficiency of a pro. In addition, keeping the home clean for showings, open houses, and surprise visitors can take a lot of time and energy.
Hiring a professional cleaning service can be a worthwhile investment. On average, professional cleaning services can cost between $200 to $500, depending on the size of your home and the extent of cleaning required. Deep cleaning services, which include tasks like carpet cleaning, pressure washing, and detailed attention to every nook and cranny, can cost even more. It’s also essential to consider the ongoing cleaning costs, especially if your home stays on the market for an extended period. Regular maintenance cleanings can help ensure your home remains in pristine condition, making a positive impression on potential buyers.
Moreover, staging your home may involve additional cleaning efforts. Stagers might recommend more intensive cleaning, such as polishing hardwood floors, washing windows to make them sparkle, and ensuring that every surface is spotless. These extra cleaning measures can enhance your home’s appeal, but they also add to the overall cost of preparing your home for sale.
In conclusion, while you can save money by doing the cleaning yourself, the professional touch can significantly impact your home’s presentation and, ultimately, its selling price. Investing in professional cleaning services ensures your home is in the best possible condition, attracting more buyers and potentially leading to a quicker sale.
Costs To Sell Your Home: Landscaping
Never, ever, ever neglect the yard when selling your home. You will want to make sure your yard has excellent curb appeal and isn’t overgrown or filled with weeds. Just like the cleaning, you can do this yourself, but you will have some hard work ahead of you. You will want to:
- Trim back trees and bushes.
- Weed the lawn and open areas.
- Plant flowers and appropriate plants.
- Fix anything in need of repair.
- Add fresh paint to outdoor trim, mailbox, door, etc.
- Add seating and other elements of staging to make the outside areas more welcoming.
The backyard should be warm, inviting, and well-manicured. The front yard is your first impression, make it a good one!
Professional landscaping services can greatly enhance your home’s exterior appeal. Depending on the scope of the work, you can expect to spend between $500 to $5,000. Basic lawn care and minor landscaping tasks might be on the lower end of the spectrum, while extensive projects, such as installing new flower beds, sod, or hardscaping features like walkways and patios, can drive up the cost significantly.
Investing in high-quality landscaping can provide a solid return on investment. Studies have shown that good landscaping can increase a home’s value by up to 10%. Additionally, a well-maintained yard can make your home more attractive to buyers, potentially leading to quicker offers and a smoother selling process.
Regular maintenance is also crucial while your home is on the market. This includes mowing the lawn, watering plants, and keeping outdoor areas tidy. If you’re not able to maintain the yard yourself, consider hiring a gardener or lawn care service. These services typically cost around $50 to $100 per visit, depending on the size of your yard and the level of care required.
Incorporating outdoor staging can also make a significant difference. Adding elements like a clean, stylish seating area, outdoor lighting, and decorative accents can create a welcoming atmosphere that extends your living space and helps buyers envision themselves enjoying the outdoor areas of your home.
In conclusion, while landscaping and yard maintenance require an upfront investment, the benefits of enhanced curb appeal and increased property value make it a crucial aspect of preparing your home for sale. A beautiful yard not only attracts more buyers but can also lead to higher offers and a faster sale.
Costs To Sell Your Home: Storage & Moving
Even if you are still living in the home, once you put it on the market, it is smart to get some of your personal items packed and stored, ready for your move. Having your personal items around the home can make it feel cluttered and dissuade buyers from having interest. While your home is listed, you will need somewhere to keep your stuff. This might require storage offsite. If you are staying somewhere temporarily until your house sells, you will likely be paying rent in addition to your mortgage. (And don’t forget, two sets of utility bills.)
Storage Costs: Renting a storage unit can vary widely in cost, depending on the size and location. On average, you can expect to pay between $50 to $200 per month for a standard storage unit. Climate-controlled units, which are ideal for storing sensitive items, may cost more. Additionally, some storage facilities offer moving and packing supplies, which can add to the overall expense.
Moving Costs: Once your house does sell, there are the costs of moving. Here are some factors to consider:
- Professional Movers: Hiring professional movers can provide convenience and efficiency but comes at a higher cost. Local moves typically range from $300 to $1,500, depending on the distance and the amount of belongings. Long-distance moves can be significantly more expensive, ranging from $2,000 to $5,000 or more.
- DIY Moving: If you decide to move yourself, you’ll need to consider the cost of renting a moving truck, which can range from $50 to $200 per day, plus mileage and fuel costs. You may also need to purchase or rent moving supplies such as boxes, tape, and padding materials.
- Packing Services: Some moving companies offer packing services, which can save you time and effort. This service typically costs extra, ranging from $25 to $50 per hour, depending on the complexity of the packing required.
- Temporary Housing: If you need to stay somewhere temporarily until your house sells, you’ll likely be paying rent in addition to your mortgage. This can be a significant expense, particularly if the selling process takes longer than expected. Don’t forget to factor in the cost of utilities for both properties, which can add up quickly.
Hidden Costs: There are also potential hidden costs to consider, such as cleaning fees for your storage unit, insurance for your stored belongings, and potential damage or loss of items during the move. It’s essential to plan for these possibilities and include them in your moving budget.
In conclusion, while storage and moving costs can add up, planning ahead and budgeting for these expenses can help ensure a smooth transition. Decluttering and staging your home effectively can make it more appealing to buyers, potentially leading to a quicker sale and minimizing the time you need to pay for temporary housing and storage. Whether you choose to hire professional movers or handle the move yourself, being aware of the associated costs will help you manage your finances and reduce stress during the home-selling process.
Costs To Sell Your Home: Listing Fees, Agent Fees, Administrative Fees and Notary Charges
Working with an agent also brings a plethora of fees and charges you may not be prepared for. (These charges are IN ADDITION to the commission, which we talk about below.) Agents will pass on a number of fees to you for marketing, listing, and administrative tasks such as clerical work and printing. You will face costs for notarization and other small charges that add up fast.
Listing Fees: When you list your home with an agent, you might incur various listing fees. These can include the cost of listing your property on the Multiple Listing Service (MLS), which can range from $100 to $500. Some agents may cover this cost as part of their service, but it’s important to clarify this upfront.
Marketing Fees: Effective marketing is crucial to selling your home quickly and at the best price. Marketing fees can cover professional photography, virtual tours, video marketing, and promotional materials such as brochures and flyers. The cost for these services can vary widely but typically ranges from $200 to $1,000. If your agent uses premium marketing strategies, such as drone footage or extensive online advertising campaigns, these costs can be higher.
Agent Fees: In addition to the standard commission, agents may charge additional fees for their services. These can include administrative fees for clerical work, which might cost around $150 to $500. Some agents also charge transaction coordination fees, which cover the cost of managing the paperwork and ensuring all aspects of the sale process are handled correctly. This fee can range from $200 to $500.
Administrative Fees: Administrative fees cover a variety of tasks such as printing documents, courier services, and handling various clerical duties. These fees can add up, typically costing between $100 to $300. It’s important to review your agent’s agreement carefully to understand what administrative fees you might be responsible for.
Notary Charges: Certain documents in the selling process need to be notarized, ensuring they are legally binding. Notary charges can vary but usually range from $10 to $50 per signature. While this might seem like a minor expense, multiple documents needing notarization can quickly add up.
Other Small Charges: There are often other miscellaneous costs involved in selling your home. These can include fees for staging consultations, open house expenses, and even fees for lockbox services or installing a For Sale sign. Each of these small charges might seem insignificant on its own, but collectively, they can add up to a considerable amount.
In conclusion, while working with an agent can provide valuable expertise and assistance, it’s important to be aware of the various fees beyond the standard commission. Understanding these costs and budgeting for them can help you avoid surprises and manage your expenses effectively throughout the selling process. By being informed and prepared, you can make the most of your selling experience and ensure a smoother, more profitable transaction.
Costs To Sell Your Home: Commissions
This is the biggie. Selling your home through an agent entitles them to a commission. Think 6% of your sale price. This can be more or less, but 6% is a good estimation. When you are calculating your asking price, make sure you factor in commissions as well as the other charges listed above.
Understanding Commission Rates: The commission rate is typically split between the seller’s agent and the buyer’s agent. For example, if you sell your home for $300,000 with a 6% commission, that’s $18,000 in total commissions. This amount is usually divided equally, so each agent receives $9,000. While 6% is a common rate, it’s not set in stone. Commission rates can vary based on the market, the agent’s experience, and the specifics of your property. Some agents may be willing to negotiate a lower rate, especially if they are representing both the buyer and the seller (dual agency).
Impact on Your Net Proceeds: It’s crucial to factor in the commission when calculating your net proceeds from the sale. For instance, if your home sells for $300,000, and you pay $18,000 in commissions, plus additional costs for cleaning, landscaping, and other fees, your net proceeds could be significantly lower than the sale price. Understanding these costs upfront can help you set a realistic asking price and financial expectations.
Negotiating Commissions: While 6% is a standard rate, don’t hesitate to discuss the commission structure with your agent. Some agents may offer a lower rate for various reasons, such as if the property is expected to sell quickly if it’s a high-value property, or if you’re willing to use the same agent to purchase your next home. Additionally, discount brokers or flat-fee MLS services might offer lower rates, but it’s important to understand what services are included in those fees.
For Sale By Owner (FSBO): If you’re looking to avoid paying commissions altogether, you might consider selling your home yourself. FSBO can save you the agent’s commission, but it also means taking on all the responsibilities of marketing, negotiating, and handling the paperwork yourself. While this can save money, it requires a significant investment of time and effort and may not be suitable for everyone.
In conclusion, while commissions represent a significant cost in the home-selling process, they are an essential part of the professional services provided by real estate agents. By understanding and planning for these costs, you can make informed decisions and optimize your financial outcome when selling your home. Whether you choose to work with an agent or explore other selling options, being aware of all associated costs will help you navigate the process more effectively.
Considering The Real Costs To Sell Your Home
When you consider all of the real costs to sell your home—cleaning, landscaping, storage and moving, listing fees, agent fees, administrative fees, notary charges, and commissions—it becomes evident that selling a home on the traditional market can be both expensive and stressful. The cumulative expenses and the effort required to prepare your home for sale, maintain its appeal, and manage the logistical complexities can quickly add up, often making the process feel overwhelming.
For some homeowners, the exhaustion and financial strain may lead them to question whether the traditional selling process is truly worth it. If you find yourself in this position, there is an alternative that can save you time, money, and stress — the real costs to sell your home: selling your home to our house-buying company.
We specialize in providing homeowners with a straightforward, hassle-free selling experience. When you choose to sell to us at Beacon Realty Investments, you can expect:
- A Fair Cash Offer: We provide a no-obligation, fair cash offer for your home, ensuring you receive a competitive price without the delays and uncertainties of the traditional market.
- No Additional Costs: We cover all associated costs, including closing costs, eliminating the need for you to pay for cleaning, landscaping, storage, agent commissions, or any other fees.
- Quick and Convenient Process: Our streamlined process allows you to close on your home sale quickly, often within a matter of days, rather than months. This means you can move on with your life without the prolonged stress and financial burden of a drawn-out selling process.
By choosing to sell your home to us, you can bypass the traditional market’s complexities and uncertainties, ensuring a smooth and efficient transaction. Our goal is to make the selling process as easy and beneficial for you as possible, providing you with peace of mind and financial security.
If you are ready to skip the hassle and expense of selling your home on the market, contact us today for your no-obligation cash offer. Let us help you move forward with confidence and ease.