Selling real estate is expensive. Many home sellers in Chicago forget to take into account the costs of selling their house when adding up the equity they have in their property. In today’s post we are going to cover all of the costs involved in selling your Chicago area house.
The actual costs of selling a property can happen over the course of several months and start adding up well before you get to the closing table. Today we are going break down ALL of the costs you should plan for when selling your house and cover the timeline you can realistically expect to incur these expenses.
Before you even talk to an agent or get started on a listing, you will need to take care of the following things. If you are willing to roll up your sleeves you can help minimize some of the upfront expenses involved in getting your property ready for sale. You might not need all of these things, but they are all important to consider.
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!
While cleaning the home, it is a great time to pack away all of your unnecessary items. People don’t want to see personal possessions or clutter when touring your home, so you will want to make sure everything is packed away. You might need to consider an offsite storage space or pod to hold your items until you have moved into a new house.
Repairs & Upgrades
You will want to fix up anything visibly broken or worn. This includes fixing and painting walls, replacing cracked tiles and smoothing floorboards.You might also take this opportunity to make minor upgrades such as new fixtures or hardware. Sending money on these things can help improve the value of your home. You just need to be comfortable paying up front.
You can’t have a beautiful listing with an ugly yard. The front yard is the first thing people see. This should not only be cleaned up but also used to showcase your home. Many people will add plants, flowers, new doors or fencing to make their curb appeal pop.
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.
While the house sits on the market you will still need to pay the monthly utilities. 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.
Some agents will include great marketing, while others will not. To successfully list your house, you will want to ensure there are great listings and great photography of the home. Some people are even hiring drone photographers to capture their homes from above.
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 type of financing your buyer is using and the experience of the lender this can take months to successfully complete. This will leave you with a few additional months of carrying expenses while you wait for the bank to approve the buyer’s loan. You can avoid the below costs with a direct offer from a company who purchases as-is.
Home inspections are always a wild card when it comes to selling your house. The truth is that you never know what will come out of it and how the buyer will react to the results of the inspection. In some cases, your buyer will get a sobering reality check of their new responsibility giving them cold feet and cancelling the contract leaving you to start the process of finding a new buyer over again. In a better case scenario, the buyer will find the results of the inspection acceptable as long as you agree to complete the numerous repairs required. Expect to spend a considerable amount of money to complete the inspection repairs requested by the buyer.
At The Closing Table
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.
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!