When you’re ready to sell your home, it’s important to understand the costs involved in a traditional sale. There are many expenses that can add up, from real estate agent fees to closing costs. Here is a breakdown of some of the different costs of a home sale and how a cash sale can help you save on these expenses!
Commissions
If you’re selling your home, one of the costs you’ll need to factor in is commissions. When you list your home with a real estate agent, they will typically charge a commission of around 5-6%. This means that if your home sells for $250,000, you’ll end up paying $12,500-$15,000 in commissions. In addition to the real estate agent’s commission, there may also be a buyer’s agent commission of 2.5-3%. This is paid by the seller but is typically factored into the price of the home. When you sell to a cash home buying company, however, there are no agents involved, and no commissions to pay.
Closing Costs
Another one of the costs of a traditional home sale is closing costs. These are the fees charged by the lender at the close of escrow. They can include appraisal fees, loan origination fees, title insurance, and more. Home buyers typically pay between 2% and 5% of the purchase price in closing costs. For a $200,000 home, that would be $4,000 to $10,000. Sellers may also be responsible for some of the closing costs. When you sell your home for cash, however, there is no lending involved, and on closing costs to pay.
Listing and Marketing Fees
If you’re thinking of selling your home, you may be wondering about some of the costs associated with a traditional home sale. In addition to the agent’s commission, you’ll also need to pay for listing and marketing fees. These fees can vary depending on the agent you choose and the marketing strategies they use, but they typically range from 1-3% of the total sales price. For a $300,000 home, that means you could be looking at anywhere from $3,000 to $9,000 in listing and marketing fees. Selling to a cash home buyer doesn’t require any marketing, and you don’t even have to pay to list your home. All you have to do is contact the cash buyer to get started.
A traditional home sale is not a free journey for home sellers. In fact, the traditional route typically means shelling out dozens of thousands of dollars in fees, commissions, and other costs to get your home sold. If you want to avoid fees like these, consider selling your home to a cash home buying company like OC Buys Houses.
Do you want a no-obligation cash offer on your home? Get in touch with the pros at OC Buys Houses to get a cash offer today!