Just How Much Will Listing Your House Cost You?

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Matt Tepp

Matt joined us in June and runs all things marketing. He graduated from the University of North Dakota in December of 2017 with a major in strategic communication and a minor in psychology. In his free time he likes to golf to with his dad, workout at the local gym, and watch sports. He is active in the Make a Wish Minnesota Organization.

The price to sell a house in Minneapolis can fluctuate greatly. It all comes down to the house itself, the needed repairs, the location, etc. Each agent will work a bit differently. Some will charge you for things, while others are “all-inclusive.” Before you commit to an agreement, find out what listing your house in Minneapolis will really cost you!

Upfront Costs

Cleaning

To create an environment that is appealing and welcoming, you will want to make sure the house is clean. You can do a good job yourself, but bringing in a professional to do a thorough cleaning of the house from top to bottom, can make the whole house look different. If you aren’t replacing the carpets or flooring, you will want to pay to have a professional clean those as well. Don’t neglect the outside. If you have a second story, it might pay off to hire a pro to come wash your windows!

Storage

Packing away all of your unnecessary items can be time consuming and just a pain. Personal possessions and clutter will not appeal to potential buyers. Having your items stored away will allow buyers a chance to envision themselves in the house. However, depending on how much you have, you may need to rent an offsite storage space or pod to hold your items, costing you money until you can move into your new home.

Repairs & Upgrades

Fixing and painting walls, replacing cracked tiles and smoothing floorboards are just the start of what may be a lengthy repair process when getting your home prepared to sell. You might also take this opportunity to make minor upgrades such as new fixtures or hardware. Spending money on these things can help improve the value of your home. You just need to be comfortable paying up front.

Landscaping

The front yard is the first thing people see. First impressions are everything when it comes to showings. If potential buyers pull into the driveway and see an ugly yard, it will leave a sour taste in their mouth before they even step into the door. Adding plants, flowers, new doors or fencing can help add a little curb appeal to your property.

While The House Is Listed

While the property is on the market, you will still find yourself paying to have it for sale. There are many expenses you will be paying during this time that you could avoid with a fast and direct sale upfront.

Monthly Costs

Even if you have moved out of the house, you still need to keep the water and electricity on for people viewing the home. You will also have to continue paying the homeowner’s insurance and property taxes up until the day of closing. You will also need to continue taking care of the cleaning and routine maintenance of the home. With many properties sitting on the market then having to go through escrow, it could be months until the house has officially closed. During this time, you could be out thousands of dollars you could have otherwise kept in your pocket.

Marketing

Professional photos, including drone shots that capture the home from all angles can be even more money out of your pocket. To successfully list your house, you will want to ensure there are great listings and great photography of the home. You will also need to stay on top of your agent marketing wise. Are they posting the listing on social media? In the papers? In real estate groups? Some agents are great when it comes to marketing, but you need to make sure they are posting your listing on every avenue possible to get the word out.

After An Offer Has Been Made

Once an offer has been made, and accepted, you will still be responsible for the insurance, utilities, and taxes up until the day of closing. Depending on the lender this could add several weeks to your time-frame. In turn, adding more money you are paying to own the home. Most offers are contingent on an inspection and appraisal process. You can avoid the below costs with a direct offer from a company who purchases as-is.

Negotiated Repairs

An inspection is required before the house and sold and if there is a major problem with the house, the potential buyer will likely request it be fixed before going through with the sale. (The bank isn’t likely to fund a loan for a damaged property either.) If your buyer decides to rescind the offer, you will need to disclose the needed repair to all potential buyers going forward.

At The Closing Table

Commissions

Once you are signing final sale paperwork, it is also time to sign over a check to your agent. This will typically run about 6% of the final sale price of the home.

Closing Costs

Many additional fees are lumped together as closing costs. These include document filing, title search fees, credit check costs, transfer taxes, property taxes and more. On average, this will run you another 2% of your final sale price.

Once you add up all the costs, you can see that listing may not be right for every property. Many people find greater benefits by choosing a direct sale! Run the numbers for yourself, and make the decision that works best for you!

Interested in selling without the traditional listing costs? We can help! Send us a message or give us a call today! (952) 649-3200

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Avatar
Matt Tepp

Matt joined us in June and runs all things marketing. He graduated from the University of North Dakota in December of 2017 with a major in strategic communication and a minor in psychology. In his free time he likes to golf to with his dad, workout at the local gym, and watch sports. He is active in the Make a Wish Minnesota Organization.

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