For many, if not most, homeowners, the home is the biggest single investment in their life. So, when it’s time to finally sell the home, it’s natural to want to make as big of a return possible on the investment.
While selling a house the traditional may seem straight-forward, it’s not. As a we buy houses in New Jersey company, we know all about the ins and outs of selling property.
Here are where a lot of hidden costs hide when it comes to selling homes in Cherry Hill, NJ.
1. Realtor fees
The first thing people think about when selling a home is to hire a real estate agent. This, after all, is the traditional way of selling homes. But partnering with a realtor is actually the biggest cost you will incur when selling a home. Think 5-6% of your home’s total selling price. Now, the exact amount will change, of course, depending on how much your home sells for. For instance, if your realtor ends up selling your home for $525,000, you’re looking to pay them at least $26,250.
If you’re trying to avoid this payment by selling the house yourself (as a For Sale By Owner or FSBO), you may be in for a big surprise. While you are skipping out on having to pay around 3% to the person who would have been your agent, you’ll still need to pay 3% for the buyer’s agent commission. Not to mention FSBO homes sell for less to begin with.
2. Closing costs
On the day you hand over the keys to the new owner, also known as the closing day, you’ll need to pay what is called closing costs. This isn’t a single amount, but rather, a lot of smaller fees that are combined to form the closing costs. These include agent commissions, taxes, escrow deposit for property taxes and mortgage insurance, fees to transfer homeowners’ association, any courier fees for the documents, pest inspection, title insurance, and so on.
Closing costs are typically split by the seller and the buyer. This usually adds up to roughly 2-4% of the total sale price for the seller. The buyer also normally pays a bit more.
3. Staging costs
For many potential buyers, being able to visualize themselves and their family in the new home helps seal the deal. In fact, “staged homes” or homes that have been strategically decorated sell up to 88% faster and for 20% more than their non-staged counterparts.
So, while it may seem like a lot to pay your realtor 6%, it may potentially benefit you. If you think the $1,000 it takes to stage a home is expensive, it’s nothing compared to the $40,000 increase in the selling price.
When staging a house, you’ll need to make sure your home looks its absolute best. This may include hiring professional carpet cleaners, deep cleaning specialists, repairing any broken fixtures or pipes, or even renovating entire rooms to modernize it.
4. Moving costs
Finally, you’ll also need to account for moving costs. This will include professional packing fees, moving truck or crew services, storage costs, and even hotel bills if you’re moving to a different state. You can expect to pay at least $2,300 for in-state moving costs and roughly $4,300 for out-of-state moves. Expect to pay even more than that if you’re moving out of the country, even if that’s just to Canada.
Need More Info?
If you want to significantly reduce the fees you need to pay, consider selling to a professional home buyer like Aim High Properties, LLC. We buy houses in Cherry Hill, NJ and beyond.
At Aim High Properties, we want you to maximize your sales. When you partner with us, you get to forego selling through a realtor, so a significant portion of your costs are already mitigated. You also won’t need to worry about any staging costs or even renovation costs because we purchase houses just the way they are. To find out more about how you can avoid costs when selling your house in Cherry Hill, NJ, call us today: (856) 861-6000.