When it comes time to sell a property most property owners have dreams of cashing in on all the hard work they have done to improve their real estate. Maybe it's the renovations they have done on a home, a new turkey barn, or the strategic planning that went into parceling out their lots. Whatever it may be, property owners spend enormous time, effort, and money improving their properties with the hope to cash in in the future.
But there are costs to selling a property that many fail to plan for. Let's use an example of a simple home sale for $300K to look at what some of the typical costs would be. Keep in mind that these costs can fluctuate greatly depending on a number of factors.
$600 Property prep and staging
$1,000 Typical seller closing costs for title work and settlement fees for a cash transaction where fees are split
$1,000 Additional closing costs if buyer is getting a mortgage and seller agrees to split those closing costs as well
$18,000 Realtor commissions of 6% of the transaction
$20,600 Grand Total
$20K is no small thing when it comes to selling a home. Let's say our home sellers were planning on upgrading to a $400K home, that $20k could be a down payment on their new home! There is one fee on that list that sticks out like a sore thumb, and it's not because it's in italics. So what is involved in the typical $18K real estate agent commission, let's break it down.
MLS Listing
This used to be a huge value add to property sellers, before the internet, and even in the beginning of the internet, an MLS listing was almost the only way to reach a large audience. Today, with multiple sites like Facebook, Zillow, and others any property owner can reach a nation wide audience with little effort. The Selling Table's Pre-Sale Checklist helps sellers prepare to list their home themselves and gives sellers the confidence they need to prepare their property for market. Still need a little extra help getting your property listed? You can upgrade your service to a Flat Fee Listing and we will list your property on the MLS and all the major websites for you!
Property Showings
Showing a property to prospective buyers can be a huge help to those who might be shy, or feel overwhelmed, by the thought of having to give someone a tour of their property. For the majority of people, hosting an open house or walking people through their home is no problem, and often they can answer questions about the property better than anyone else. Usually the biggest headache for a showing is preparing the property, which is usually done by the property owner anyway (unless you use a home staging service)
Negotiating with Potential Buyers
Most people are happy to discuss price and details with someone they are trying to sell their real estate to, but there are many things to think of while negotiating with a potential buyer on the sale of real estate. Who pays closing costs? When will possession be? Will we need a survey, inspection, or appraisal? These and many more questions can be forgotten by the average person doing a for sale by owner transaction. That is why The Selling Table developed a comprehensive online questionnaire to ensure home sellers have asked all the necessary questions needed while they negotiate with their buyers.
Now, let's break down our same example scenario, but this time, let's say the property seller is using The Selling Table to help coordinate their transaction.
$600 Property prep and staging
$1,000 Seller closing costs for title work and settlement fees for a cash transaction where fees are split
$1,000 Additional closing costs if buyer is getting a mortgage and seller agrees to split
$1,500 The Selling Table transaction coordination fee
$4,100 Grand Total
That's a $16,500 savings! That is 54% of Indiana median income!
Even if you would upgrade to our flat fee listing service, you could still possibly save over $15,000 from a traditional real estate agency!
So the question to the potential home seller becomes: Are you willing to list, show, and negotiate with a transaction coordinator who is there to help you through the process in order to save, in many cases, over ten thousand dollars? I think the answer for most people is yes, and I hope you'll agree with me!