Traditional home sales in Raymore can be extremely expensive, including far more than the commission or financial burden of surprise repairs. On the other hand, a direct sale to kcmoHomeBuyer will eliminate a lot of these costs. Read on for a rundown on the surprising costs associated with working with traditional agents.
Commissions and Fees
Real estate agents are paid based on a percentage of the sale price. Usually, commissions are 3% per side, and quite often an additional administrative fee to of $250 to $500. So take a look at your asking price, and figure at least 6 percent of that for commissions and maybe an additional $500 on top of that.
The costs can add up very quickly, your listing agent will usually add on fees for advertising the property. In some markets, the agent might charge to list a home in a real estate trade magazine. And right now with coronavirus, some may charge to have your home virtually showcased with professional 360-degree images and virtual walkthrough software. and drone footage for a virtual walkthrough. Some agents have invested in the tools to do this and others charge extra.
When using a real estate agent, the buyer’s agent almost always orders an inspection of the property. Along with this additional cost, traditional home purchases usually require qualifications from banks, mortgage underwriting time, property inspection time and the buyer may not end up qualifying. Now while the seller does not pay for the actual inspection or appraisal, that’s on the buyer, they often have to shell out money to make repairs to satisfy problems on the inspection or the appraisal.
Repairs and Maintenance
Some sellers spend money in advance doing repairs and deferred maintenance in hopes of getting a higher price. Quite often these take longer than anticipated, cost more than expected and sometimes delay the listing and the sale for months.
Staging and Utilities
Often real estate agents will suggest you bear the costs of staging your home for showings. They’ll also want you to leave the lights on and you certainly don’t want your potential buyers shivering in the cold or sweating as they walkthrough. This means you’ll also be burdened with keeping your utilities on during the duration of the listing. As you may well be aware, there is no guarantee the home will sell quickly, if at all.
Buyers may find something they don’t like about the home or neighborhood. Under most traditional real estate contracts, a buyer could sue you if they feel there wasn’t full disclosure or facts were misconstrued, even if the issues were unknown to you. You could be facing legal costs as well.
Closing costs are generally fixed in nature and average about 2% of your selling price. These costs can include transfer fees, mortgage processing fees, escrow fees, or notary fees. Tax prorations between the buyer and seller at closing, which could add thousands to the expenses you’ll pay at closing. This expense varies depending on the time of the year you sell your home, the local tax assessments, water or sewer bills, any HOA fees or escrow item. Naturally, you’ll also owe any remaining mortgage debt, unpaid taxes, unpaid homeowner association fees, and more.
Because we’ve found that so many sellers get upset by our competitor’s claims of paying “all closing costs” and then getting stuck with them anyway, we don’t promise to pay your closing costs. What we do promise is that if there is an issue in you paying your own closing costs, we will work with you as your buyer to find a solution to your closing costs that works for all parties involved. Sometimes it’s simply that you pay your side of closing and it comes out of your proceeds. And other times we sit down and calculate what all of the closing costs are and negotiate for us to pay them. We find this creates less confusion as we can be as transparent in the transaction as possible.
Working with a Direct Buyer Can Save Many of these Costs
Direct buyers in Raymore already know the state of the property and will usually purchase homes as-is. As a seller, this eliminates repairs before closing or any other additional expenses you weren’t planning on. There are some companies that don’t require inspections which makes it a truly as-is transaction. They typically close faster than traditional home buyers saving you the monthly expenses of listing. Direct buyers will not charge you any commission or transaction fees. They can even facilitate a closing with you out of state.