Will selling cost you money? Many people list their house, not taking into account what it will actually cost them. There are fees and expenses you should be aware of before you list with an agent. In our latest post, we will let you know what costs to expect when selling a home in Baton Rouge!
Most people think that selling a house is easy. You take some pictures, hire a REALTOR, and BOOM, you get the amount of money you want in a month or two. Unfortunately, that isn’t how it works, and there are a lot of things to consider before you decide how you want to sell your home. Listing your house will cost you money when the property closes (realtor comissions), and also up front with repairs. This is something to factor in when pricing your home and deciding who you want to work with.
An average home in the US takes $15,200 of your money to sell. That’s quite a bit, and that number varies a ton based on where you live and how much your home is worth. What are these costs? Read on!
Will Selling Cost You Money in Baton Rouge?
Real Estate Agent Commissions – The seller gets to pay these! Lucky you! Commissions in Louisiana are usually around 6% of the final sale price of the home, but it varies from brokerage to brokerage. The amount the agent will receive will be on your listing agreement, so you will know ahead of time. This money comes out of your proceeds from the sale, not out of your pocket, so you have to keep it in mind when you are pricing your home.
Agent Fees – Not all agencies do this, but some charge additional fees throughout the sales process. Some agents will pass on marketing and listing fees directly to their clients. It’s a good idea to ask about these fees before you sign the listing agreement, otherwise you could have some surprises along the way.
Closing Costs – Closing costs include many items that are paid at the closing table. These include transfer fees, title insurance, title search fees, recording fees, transfer taxes, appraisal costs, discount points, credit report fees and more. Depending on how hot the market is, the seller could be expected to cover some of the buyer’s closing costs.
Taxes – When you list your home for sale, you are responsible for the property taxes, utilities and homeowners insurance up until the day of closing. Investors refer to these costs as “holding costs”. These seemingly small costs add up over months and can build to thousands should it take a few months for the property to sell and close. Once you decide to sell, the sooner it happens, the more you walk away with!
Preparing Your House for The Market – Is your house in perfect condition? Because your competition is all newly renovated. You need to spend energy, time and money getting your house ready to sell. There are repairs to make, walls to paint and carpets to clean (or remove since carpet is not popular). You will want to remove personal belongings and stage the home for selling. Whether you work with a professional or do it on your own, you are likely to spend money on new decorative pieces in the house. You should also clean up the yard and consider some new landscaping to bring more curb appeal to the property. Remember, landscaping is the picture frame for your house. It shouldn’t draw a lot of attention, but it should make the house look great!
Inspections – This is an inexpensive way to figure out what you need to fix before you sell, and get more negotiating power. While it certainly isn’t required, more and more sellers are paying to have their home’s inspected before listing them. This will cost approximately $200 in Baton Rouge.
Storage and Moving – While moving isn’t technically a selling cost, it is a large expense you will have to make once the house closes (if you haven’t done so already.) Whether you hire movers or do it yourself, moving can get expensive! How far are you going? Will you need a truck? Or pizza to bribe your friends? You will also want to consider storage costs if you are living in the home while waiting for it to sell. Packing up unnecessary items ahead of time will make the house look nicer and give you an edge when it’s time to move.