It can seem like there are a million things to do when selling a property, such as pre-sale renovations, holding open houses, and dealing with potential buyers. And there is a long list of different things to consider when it comes to selling your home, and costs are likely to be near the top of that list.
Many people don’t realize that selling a home may take even more energy and planning than buying a home.
We’ve provided five key tips to help you reduce your expenses and save money when selling your house. You can save significant money and make selling your house much easier by following these tips.
1. Use a Flat-Fee or Discount Real Estate Agent
If you sell your home through a traditional agent, you should expect to pay around 6% in fees. If your home sells at $200,000, that means you will be paying $12,000 in estate agent fees. These fees will likely make up a significant portion of your seller’s fee. When you add all the costs that a seller must pay, it could result in a very large bill when you sell your home.
Working with an experienced estate agent will increase your chances of selling and securing a sale. Many sellers consider it a worthwhile investment. Flat-fee agents or discount real estate agents may be able to help sell your home and save you thousands in the process.
Real estate agents have evolved to offer a wider range of services at different prices in recent years.
Flat-fee agents may offer a basic service, which includes advertising and listing the property for one payment. This is agreed upon before the house is listed for sale. Discount real estate agents charge a percentage of the home sale in the same way that traditional realtors do. However, the listing fee can be as low as 1 percent and the total commission to sell your house can be around 3.5 to 4 percent. That is the huge advantage of using a discount real estate broker.
Since the contract you sign will vary depending on which agent is used, shopping around could save you a significant amount of money.
2. Negotiate your Agent’s Commission
It’s worth talking to a traditional agent about their commission rates if you decide to work with them. Your agent may be open to reducing their commission, which could save you a lot of money. If they aren’t, you can always walk away and choose someone else.
Real estate is competitive and you should use it to your advantage. Ask multiple agents to give you a quote. Agents who know they are competing with each other are more likely to offer you their lowest quote.
On the sale of a $300,000 home, the difference between paying 5% or 6% in realtor fees would be $3,000. That means $3,000 more in your pocket.
3. List your home as ‘For Sale by Owner’
You can list the property “For Sale by Owner” if you don’t want to pay the fees of a real estate agent. This means the property is being sold without the assistance of a realtor. This is a popular option for sellers who want to reduce their costs. This method of selling your house will have its pros and cons.
The pros include lower selling fees and greater control over the sale of your property. Open houses can be held whenever you want and you are in control of how your home is presented. Your chances of selling your house could increase because you know your house better than anyone else and can highlight its potential and positives.
However, there are cons. You’ll lose out on the contacts and expertise that a realtor has. A professional realtor will know where and how to promote the property to maximize exposure. They will also be able to tap into their networks and contacts to find potential buyers.
It is also common for buyers to ask for a significant discount when purchasing a FSBO because they know you are not paying any commission.
It is possible to sell your house without the help of a real estate agent if you are looking to cut down on your expenses. If you choose to go this route, be ready to do additional work.
4. Sell to an iBuyer
An iBuyer is typically an investment company that uses technology to offer a quick price on your house. It is easy to sell your home to an iBuyer because it eliminates all the middlemen, including realtors and independent surveyors.
An iBuyer will need basic information about your property and photos or videos depending on the buyer’s requirements. An agent will then be sent to inspect the property and make an offer.
Selling to an iBuyer has one major drawback. They rarely have the highest price. You are more likely to get a higher property price if you put it up for sale. Selling to an iBuyer saves you the seller fees you would have to pay if selling to a traditional buyer. However, some iBuyers may charge hidden fees so be aware.
5. Be Smart with Renovations and Updates
It is possible that your home needs some repairs before you list it. However, it may not be necessary for a complete renovation, which could be extremely expensive and time-consuming.
Make smart decisions about what updates and repairs you make to your home. A simple coat of paint, new curtains, or carpets can brighten up a space and increase buyer interest. For more extensive renovations, such as kitchen or bathroom updates, you can shop around for cheaper supplies and, if possible, do some labor yourself to cut costs.
You may be asked by a buyer to make repairs to your home. Before you agree to this request, it is important to do extensive research and shop around for the best price.
Final thoughts on how to save money selling your house
Selling your home can be stressful, but not necessarily a majorly costly one. These tips can help you reduce your seller fees and maximize your profit when you sell your home.
- Utilize a Flat Fee or Discount Agent
- Negotiate Agent Commission
- List FSBO
- Sell to an iBuyer
- Be Smart with Renovations and Updates