Are you looking to sell your home in Rhode Island and have you found that the costs to sell a house are incredibly high? You might find that the closing costs are extensive and repairs on your home will cost too much.
In our guide below, you will learn all of the essential information for reducing house selling costs. We will provide the tips you’ll need to follow when looking for the cheapest way to sell a house in Rhode Island.
Read our guide to learn about all of the fees associated with selling a home and how you can reduce those costs.
How to Cut Down House Selling Costs
In the state of Rhode Island, you can reduce the costs associated with selling a home by avoiding over-decorating and over-renovating your property. You should focus on more minor improvements for boosting home value instead of completely re-doing your kitchen or bathroom.
You can reduce costs by merely adding a fresh coat of paint in a neutral color and improving your landscaping by planting some more flowers in your front yard to improve curb appeal. You don’t need your home to look better than the other houses in your neighborhood.
Furthermore, you will want to do as many of the projects by yourself instead of hiring a professional. This can save you more money, as long as the home renovations are minor and not too complicated. For instance, you don’t need to hire a cleaning service to declutter your living room or make sure your bathtub is scrubbed and your stove looks presentable.
In addition, when selling a house, compare the prices of different professionals you’ll need to hire, such as real estate brokers, photographers for professional photos of your property, home inspectors, and a real estate agent. You can also try to negotiate prices.
Also, you’ll need to determine the right time to sell your home. If you already moved out, you don’t want to spend too much time paying for two mortgages. Usually, spring is the best time to put a home on the market.
When looking for the cheapest way to sell a house, you will also want to carefully look over your sales contract when you find potential buyers. It can help you reduce the costs, as some buyers may prefer a seller concession toward closing costs, which you can often renegotiate.
Know Your House Selling Fees
You will need to be ready to spend about 10 percent of your home sale price in overall selling fees, which is not part of what it may cost you to pay off your mortgage. As such, you’ll also need to figure out exactly how much you’ll need to cover the rest of your mortgage once you sell your Rhode Island home. The most typical expenses you’ll need to cover when selling a place include:
- Real estate agent commissions
- Property taxes and neighborhood fees
- Title insurance and title policy for the home buyers
- Your current mortgage as previously mentioned
- Home repairs after a home inspection
- Moving costs, especially if you hire a moving company
Commissions for realtors are usually about 5 or 6 percent of the home selling price once the purchase deal is completed. The commission fee is likely the biggest part of your home selling costs, which means you should always ask the real estate agent about his or her commission fee. You may be able to negotiate this fee.
Furthermore, you’ll need to cover a prorated share of property taxes upon selling your home while some states require you to pay a local transfer tax. If the profit you make from selling your property is above $250,000 or $500,000 for married couples filing a joint tax return, you will likely have to pay a capital gains tax.
Lastly, the title policy may cost around $1,000, so keep that in mind when selling your home.
Have You Calculated for Repairs & Renovations
Is your home in complete degeneration? Is it falling apart or, at the very least, are some rooms looking quite old-fashioned and in need of upgrades and modernization? If you’re convinced it will take too long to sell your home in its current condition, then you’ll need to consider paying for more major repairs and renovations.
Before selling your place, you will want to calculate how much it will cost to repair and renovate your place. On average, home renovations and remodeling cost $46,843, according to HomeAdvisor. Usually, the costs of renovating range from around $18,000 to $76,430.
The rooms that tend to cost the most to renovate include kitchens and bathrooms. On average, kitchens cost about $25,000 to renovate while bathrooms cost an average of $10,000. Structural and mechanical repairs tend to take up most of the overall renovation costs as well.
If you want to remodel your basement, that may cost up to $20,000. The average costs of renovating a living room range from $1,500 to $5,500 while remodeling a bedroom and its closets cost anywhere from $1,500 to $3,500.
When making a budget for renovating your home, you’ll need to consider the size of every room you want to redo, the problems with each portion of your home, the cost of materials, and how extensive the remodel will be.
You will need to be aware that remodeling costs can be very high when selling a home that’s in disrepair. As such, Rhode Island residents may find that selling a house for cash in an as-is condition to cash home buyers Lincoln may be their best option.
Cheapest Ways to Sell a House
If you’ve had your home listed on the housing market for a long while, then it might be time to better determine your overall home value. Even if you believe you’ve picked an accurate asking price for your house, the price may be too high for current buyers and you may not see an offer for a long time.
Spending too much time selling your home, especially if you’ve already moved to a new place, can force you to spend too much money on multiple mortgages. As such, you’ll want to sell your place more quickly, which means you may need to lower your asking price.
In general, pricing your home to sell quickly is important if you want a cheaper and quicker way to complete the sale. A competitive price will make your home stand out more. It may also mean you can spend less money on repairs if potential home buyers see that your home is priced lower.
Another way you can sell a house more cheaply is to work with a flat-fee real estate agent. Otherwise, you may need to negotiate real estate agent fees when selling your home. Furthermore, minor repair work likely doesn’t need professionals and you can DIY (do it yourself).
The absolute cheapest way to sell a house is to find a cash buyer or a cash home buying company. In this case, there shouldn’t be any commission fees or large closing costs.
Tips for Lowering Costs When Selling a House
The major tips for reducing costs associated with selling a home in Rhode Island include:
- Negotiating a reduced real estate commission
- Negotiating closing costs with potential buyers
- Conducting only small and minor repairs on your home
- Completing a home inspection before listing your house on the local market
- Improving curb appeal and staging your home boosts your home sale price
The average real estate commission is about 5.5 percent of the home’s final selling price, which is split between the seller’s and buyer’s agent. However, for higher-priced properties, real estate agents are often fine with negotiating a commission fee below the standard seller’s agent commission.
When it comes to remodeling, try to postpone major repairs like putting up brand-new roofs, replacing air conditioning or heating units, and foundational repairs. Instead, focus on adding a fresh coat of paint and boosting curb appeal with some new flowerpots and bushes.
When you get an offer, make sure to look over the contract and be aware that the buyer will need to cover inspection fees, title search fees, lender’s title insurance, appraisals, and survey fees.
Now that you’ve read through this guide, you should have a good idea about how you can sell a house cheaply in Rhode Island. You can negotiate fees with home buyers and realtors as well as only invest in minor repairs around the home before listing it for sale.
Yet, the best way to sell your Rhode Island house for cheap is to sell to a home cash buying company. This way, you can likely sell your place in an “as-is” condition while reducing closing costs and avoiding commission fees.
Before you know it, you’ll have the check in hand and can move on to living in your new home.