Do you know about the costs of selling your house in the Chicago area? Learn what to expect before putting your house on the MLS, selling on your own, or working with a direct buyer. You might be surprised at how the costs of selling can eat away at your profits!
Selling real estate is expensive. There are several transaction costs, taxes, and fees that will chop down the amount of money you actually walk away from the closing table with. In today’s post we’ll take a look at a few different options you have for selling your Chicago area house and the different selling costs you should expect to pay for each option.
Costs Of Listing
This will vary based on the agent you choose to hire. You will typically be paying about 6% of the final sale price to the agents involved in the deal. With some agents, you will also face costs for marketing and administrative services. Be sure you know what’s included before signing a listing agreement.
Whether or not your agent includes marketing services in their rate, there are a few marketing costs you consider adding. For example, many sellers will hire a professional photographer to take pictures of their home. Some will utilize videographers or even drone service companies to get aerial shots of the property. You might also want to upgrade your online listings to “premium” so they show up at the top when people are browsing through houses in your area.
Even if your house is in excellent condition there are always going to be at least a handful of repairs that will need to be addressed before listing the property for sale. After you have taken care of all of the obvious repairs and listed the property for sale you should expect to make additional repairs that your buyer will request. A home inspection will always reveal issues that need to addressed by the seller and need to be ready to perform the repairs in a timely manner.
Cleaning And Staging Costs
Most sellers will have their homes professionally cleaned before putting it on the market. Many will remove personal belongings and clutter, storing all unnecessary things elsewhere. Some will even hire a professional stager to come in to make the house look as if it came out of the pages of a magazine.
In a typical home sale, the seller will need to pay about 2% of the final sale price in closing costs. This can be negotiated up or down between the buyer and seller, but 2% is typically what you can expect to pay. Since property taxes are paid in arrears you will also be responsible for making paying a tax proration on your property taxes for the period you owned the property.
Continued Ownership Costs
Listing your house with a Chicago real estate agent can take a few months. During this time, you will still be responsible for the property taxes, utility bills, homeowners insurance, maintenance, landscaping, and possibly a mortgage. When you add up all the expenses of owning the house each month, it can amount to thousands of dollars!
Costs of An FSBO (For Sale By Owner) Listing
While trying to sell your house on your own will help you avoid commissions and agent costs, there are other costs to consider. In addition to many of the costs above, here are some additional costs to expect when selling your house in the Chicago area.
Heightened Marketing Costs
When listing your house, the addition of extra marking is at your discretion. However, when you are selling on your own, 100% of the marketing is up to you. You will have to pay for all online listings, printed materials, signage, and open house costs. You will likely want a professional photographer to come in to help you present the house in the best light. You can also opt to add things such as virtual tours or videos of your property.
House Preparation Costs
Getting a house ready for a sale can take a lot of work. As with a listing, there are a number of things that will need to be done before the house is advertised for sale. You will need to thoroughly clean the house from top to bottom. You should make any needed repairs, and be prepared to make more after the inspection process. Many sellers will also face storage fees for their unnecessary items, as well as the cost of a professional stager or decorator.
The Price Of Your Time
When you choose to sell the property on your own via an FSBO listing, you will find yourself spending an excessive amount of time dealing with the sale. You will need to be available for showings, create listings and marketing materials, respond to questions, process paperwork, handle negotiations and more.
By doing a FSBO listing you will be able to save yourself the commissions a real estate agent would charge for helping locate a buyer. However, you will still be on the hook for paying all of the customary closing costs which will be roughly 2% of the total sale price.
Costs of Selling Directly
When you opt to sell your Chicago house to a buyer such as Blue Ladder Development, you will be able to avoid all of the selling costs mentioned above. There are no fees, repair costs, or even closing costs. We buy directly, as-is, potentially saving you thousands of dollars along the way.