There are several expenses involved in a real estate transaction that occurs at the conclusion of the deal. Closing costs might be perplexing since they vary by state and include items like appraisal fees, recording charges, and attorney’s fees. So before you go to sell your house you’ll want to learn everything there is to know about closing charges and realtor commissions.
Real estate sales can be a time-consuming and complicated process. After all of the preparation, examining, and bargaining, it doesn’t necessarily mean that a deal is done. There’s still closing to consider, as well as any costs associated with the closing of each party — including realtor fees.
When realtor commissions are included, as is the case with most real estate transactions, you should typically expect a 6% fee to be charged against the seller’s closing costs. This can cut a significant amount of the seller’s profit. As a result, today’s savvy sellers search for methods to minimize realtor fees and pay less at closing.
Whether you’re buying or selling, the following are some closing costs to expect and ways to reduce your closing expenses.
Fees When Selling Your House in New Hampshire
When it comes to closing a real estate deal, fees and expenditures are typically linked. Both the buyer and the seller will be charged fees in a real estate transaction. To give you a better idea of what these fees would cover, we’ve broken down what the buyer and seller’s expenses would look like.
The seller will be looking at these expenses when selling a house:
- Home preparation costs (repairs, cleaning, and staging)
- Realtor commission fees
- Negotiable items and Buyer incentives
- Closing costs
- Relocation expenses
They include property taxes, insurance premiums, utilities, and other things which could be included in the closing costs when selling a house.
The buyer will also have to cover similar costs:
- The down payment on the home
- Buyer closing costs
- Property taxes, insurance premiums, HOA fees, utility deposits
- Relocation expenses
Now that you understand what these extra fees are, we’ll break down how much they typically cost in a real estate transaction.
Types of Fees and Costs
To give you a better idea of what it could cost to sell a house will use the average home value in New Hampshire according to Zillow which is currently $385,864 (Oct 2021). The breakdown will also include selling with a traditional full-service real estate agent.
Using the list of expenses mentioned above here is a breakdown of the home selling costs in New Hampshire.
|Average expenses for home sellers in New Hampshire||Typical % of the sales price||Estimated cost|
|Preparing your home to sell||2-3%||$7,717-$11,575|
|Realtor commission fees||5-6%||$19,293-$23,152|
|Negotiable items and Buyer incentives||1-3%||$3,858-$11,575|
*Based on the average home value of $385,864, according to the Zillow Home Value Index.
Needless to say, the total cost of selling a house in New Hampshire isn’t cheap, which leads many homeowners to consider ways to cut down on expenses. Thankfully, there are a few ways to cut selling costs, which will be explained below.
> Learn more about the cost of living in New Hampshire
Are Realtor Fees Covered in the Closing Costs
Realtor fees are covered in closing costs and are typically taken from the sales price when the buyer’s funds are transferred to the seller. When a property is sold, both the buyer’s agent and the seller’s agent earn a sales commission. While the sales commission can vary it’s usually around 6% of the sales price which is paid by the seller and split between the two agents.
Alternative House Selling Options to Using Realtors
Considering how expensive it can be to sell a house looking for some alternatives to using a realtor could save you some money. Here are three options to consider besides hiring a listing agent.
Selling to Cash Home Buyers
This may be one of the cheapest ways to sell a house, which is selling to cash home buyers in Salem. If you’re not familiar with what a cash home buyer is, it’s a company that directly buys your house from you. They don’t go through an agent and they’ll often offer to pay in cash.
Cash home buyers also buy houses in as-is condition which is another savings to homeowners with older homes, damaged properties, or if the home is in need of several major repairs.
Another advantage is that they’re easy to work with and understand unique selling situations like probate, liens, code violations, and divorce.
Companies that buy houses in Bedford can also close quickly, we’re talking 7-14 days, which can be extremely helpful if you’re trying to avoid foreclosure, bankruptcy, or just don’t want to wait around for your house to sell.
So bottom line, you could sell your house on your timeline, pay no realtor commissions or closing costs if you were to sell to a local cash home buyer.
Selling to House Flippers
Another option besides hiring a real estate agent to sell your New Hampshire home is to sell to house flippers. This may be a great option if you own a fixer-upper that needs some repairs.
House flippers typically buy houses below market value, make repairs that increase the homes’ value, then resell the property for a profit.
The advantage to selling to a house flipper is that they usually don’t use realtors to save on expenses. However, some house flippers pay with cash, some use financing. Some have a specific housing criterion or target area they’re looking to buy into.
Needless to say, selling to house flippers may be another great option to avoid realtor commissions.
Selling By Yourself
The third and final option to avoid realtor commissions is to try selling by yourself. There are quite a few websites that you can pay to list your home as an FSBO or “For Sale By Owner”.
But unless you have a real estate background it may be a bit challenging. You’ll need to understand the local real estate market, come up with a sales and marketing strategy and still get your home ready to list.
Most homeowners struggle with figuring out the best listing price when selling by owner or don’t know how to negotiate very well, which could mean losing out on thousands of dollars. So it’s important to do your research and read tips for selling a house without an agent before listing your home.
Keep in mind though that even after you put in all the time and effort to sell by yourself you still may need to pay the buyer’s agent commission fee (2.5-3%).
Most people are surprised to find out how expensive it can be to sell a house. If you’re hoping to cut down on some of these fees or closing costs you may want to consider other selling options besides hiring a realtor. As you’ve discovered there are other alternatives out there that not only save you money but can provide a smoother process than trying to sell on your own.