There are a number of costs that go into a traditional home sale. Sometimes the expenses simply aren’t worth it. Learn more about what to expect in our latest post!
When homeowners to choose to put their houses on the MLS with a Overland Park real estate agent, there are often costs they aren’t aware of and are unprepared for. Below we will discuss the costs you should expect with a traditional listing and when it makes sense to spend the money. We will also provide information about the alternatives out there that can benefit you!
Costs You Can Expect
Of course, there are the traditional costs homeowners can expect when selling houses in Overland Park. You might factor in commissions and fixing up the property, but there can be costs far greater than that. A commission will usually eat up about 6% of your final sale price, which alone is a high amount of money. But when you add in things like professional cleaning, marketing, photography, staging, landscaping, and you holding costs for things like taxes, utilities, and insurance, you might find that it is better to sell the property sooner rather than later. When listing your house in Overland Park, the costs will vary based on the property and the competition. It is up to you to explore your selling options so you can ensure you are making the best decision for your situation and property.
When It Makes Sense To Spend
If your house needs little to no work and is in high demand, it can pay to list with a Overland Park real estate agent. Make sure you are hiring both contractors and an agent whom you trust and can count on to get the job done for you. Paying for minimal repairs while feeling confident you will get your asking price is a no-brainer. However, if there is a lot of competition or if the property requires a lot of money to fix-up and repair it may not make sense to spend all the extra cash. Many people think that listing will be their best choice, but realistically, this isn’t always the case. Some properties will fare much better by being sold directly.
Alternatives to the Fix Up
We will let you in on a little secret. If your home is 100% livable, just not quite up to modern standards. Or if it is in fairly decent shape but needs some repairs. Then listing your home with a Realtor might be the way to go for top dollar as there are a lot of first time home buyers or people looking to move up to a larger home who want a good deal. If you are able to sell your home for a bit less than market to offset the cost of repairs and still pay a real estate commission, you might consider spending the money. We sell houses here at kcmoHomeBuyer.com all the time that need a bit of work. We market them to buyers looking for a deal who want to do a little painting and updating to make the home their own while saving a bit of money.
However, this is not always the best plan of action. Sometimes the home needs a lot of expensive repairs like a new roof or new furnace and air or a complete remodel and this is often out of the reach of average DIY home buyer. For those you either need to make the repairs yourself and then sell, adjust your price to compensate for needed repairs and then pay a real estate agent to sell for you, or sell directly yourself.
Alternatives To Listing Your House In Overland Park
The best alternative to listing your house in Overland Park is to sell it directly to a professional buyer. When you work with a professional buyer to sell your house directly, you will be able to avoid things like repairs, commissions, and the continued holding costs. When you add it all up, this can amount to thousands of dollars you are able to keep in your pocket! Selling directly also benefits those who don’t have the time to facilitate a traditional sale with a Overland Park real estate agent. Some people need to sell their houses quickly, and in these cases, a listing may not be the best choice.
Keep in mind that not all home buyers in Overland Park are the same. When you choose to work with the team at kcmoHomeBuyer, you can always ensure you will receive a great offer for your house no matter what condition it’s in. We believe in paying fair prices based on the current real estate market combined with the condition of the property. By avoiding commissions, repairs, and all of the other costs of a traditional listing, you may find that a direct sale is the opportunity you have been waiting for! Get in touch with us today for a direct offer for your Overland Park house!
How do you decide which is best for you?
This will take a bit of homework on your part. We would suggest a consultation with an area Realtor or two so you can get their thoughts on what they could sell your home for as it sits today as well as with a few or a lot of repairs as needed. At the same time they share with you pricing, they should also share with you what type of repairs need to be made and what their costs would be to sell the home as well as how long they think it might take to sell the home.
Next armed with the repairs needed take a look and see what it would cost to pay someone to make those repairs. Call some contractors or handy people and get some estimates of costs and timelines.
The last thing you really need to make an informed decision is what are you paying for holding costs: utilities, taxes, insurance and mortgage payments. Keep in mind if this is not a home you live in that you really should have vacant property insurance, so please consult with your insurance agent.
Now, you should have the vital information you need to make a decision:
- What it’s worth fixed up and repairs needed to get it to that condition.
- What its worth as is with suggested items to make it more sellable.
- Timelines for sale and timelines to get repairs done so you know how many months of holding costs to calculate.
- Cost to sell with a real estate agent.
- Then sit down and crunch your numbers.
We often find that sellers are going to spend at least a month in gathering all these numbers. Then another month in making minor repairs or 2 to 3 months or more in making major repairs. Those who procrastinate it could take even longer. And a typical sale in Kansas City takes about 30 to 60 days to get a contract and then another 45 days to get it close. All in an ideal situation. Then add in the real estate commission.
Or you call us today, we look at your house, we negotiate a sale price, and we close in a week to 10 days or on your timeline. No we don’t pay top price, but we pay a fair price considering we close very quickly, we take on all repairs, and for those who ask, we can even take on cleaning out the house. It cost you nothing but a bit of time to see if your house might work for us and you will have your answer in a couple of days.