Educated sellers who have done their research are almost always able to significantly reduce the costs that they incur while selling their home.

If you are selling your home with the intention of moving to another home or relocating to another city, the first steps in the selling process are the same as the first steps in the buying process: contact a REALTOR® for help and a mortgage lender for a loan pre-approval.  This step is important because there have been cases where sellers have sold their home before learning that they could not qualify for a mortgage to buy the home they wanted.  In these cases, the sellers come out of the transaction unhappy and end up living in a home that is less than what they had expected.

The next step is to carefully research the costs associated with the new home that you intend to purchase.  If you plan to move to an area with a higher cost of living, you will need to evaluate affordability just like you did when you purchased your first home. A seller who is also a well educated buyer usually can reduce the costs that he or she incurs to purchase a new home and assume a new mortgage loan. Below is a list of costs commonly associated with selling a home in Hampton Roads.

Agent Costs

To protect yourself in the sale process, choose to work with a certified REALTOR® who has vast expertise and years of experience.  The REALTOR® fee that he or she will receive from your sale will be paid in the form of a commission at the time of the closing.

For Sale By Owner Costs

If you opt to sell your home as “For Sale by Owner” (FSBO) without a REALTOR®, you will face many expenses during the sales process.  These costs can vary significantly, depending on how you market the home, which professional(s) you select to handle your paperwork, and how much of the sale you can handle on your own. Additionally, without a REALTOR® to be your advocate, you may be more likely to experience law suits from buyers. This is because the process by which title to real property is transferred is rather complicated, and the typical home seller is not familiar with the many legal issues that can and do arise, even in a fairly simple transaction. Important decisions must be made concerning contract terms, escrow matters, transfer of title, apportionment of costs and any number of other matters. Also, bear in mind that a simple missing word, or a mistake in grammar can create a dispute which, in turn, can give rise to a lawsuit. Also keep in mind, buyers who look for “FSBOs” may offer up to 10% below the price of comparable properties because they know you are not paying a commission.

Advertising Costs

When you opt to sell your home with a REALTOR®’s assistance, you avoid the expense of advertising your home for sale.  However, if you opt to sell without an agent in the hopes of avoiding the agent commission, you are responsible for all the advertising costs. These costs can be insignificant or substantial, depending on the location, the type of advertising you select, and the number of people who pass by your home daily.

A REALTOR® will advertise your home to other agents in the area. They will then pass along information to their clients, which are potential buyers.  REALTORs® are experienced in successful advertising, and they will do everything possible to make sure you are pleased with the results.

Closing Costs

The seller sometimes assists the potential buyer by offering to pay some percentage of the closing costs.  However, the offered price for the home is sometimes raised in this situation. In effect, the buyer reimburses you for your contribution. Depending on the mortgage program that the buyer has chosen to use, the amount of closing costs the seller can pay may be limited.  This limit may be percentage-based or it may depend on the size of the buyer’s down payment.  Some Veteran’s Administration (VA) mortgage programs allow the seller to pay all of the closing costs.

Repairs

The cost of preparing your home for sale is highly variable.  If you merely clean and apply a coat of paint to the interior walls, your repair costs will be insignificant.  However, if you determine that the home will sell for more with a new roof and an enclosed patio, the cost of making these modifications could be quite high.

Naturally, these are not the only possible repair costs.  Home inspections often reveal problems that the seller is obligated to repair or update before the sales transaction can be finalized.  Sometimes the buyer is willing to assist with these costs, but at other times the seller must bear the burden alone.  Depending on the age, location and style of your home, as well as its upkeep over time, the home inspection may be favorable or unfavorable for the seller. You can often reduce the unexpected cash outlay by getting a inspection of your own before placing your home on the market.

These are some of the costs to expect when selling your home; however, you may not encounter all in this list.  Contact a REALTOR® for more information.

Agent Costs
To protect yourself in the sale process, choose to work with a certified REALTOR® who has vast expertise and years of experience.  The REALTOR® fee that he or she will receive from your sale will be paid in the form of a commission at the time of the closing.

FSBO Costs
If you opt to sell your home as “For Sale by Owner” (FSBO) without a REALTOR®, you will face many expenses during the sales process.  These costs can vary significantly, depending on how you market the home, which professional(s) you select to handle your paperwork, and how much of the sale you can handle on your own. Additionally, without a REALTOR® to be your advocate, you may be more likely to experience law suits from buyers. This is because the process by which title to real property is transferred is rather complicated, and the typical home seller is not familiar with the many legal issues that can and do arise, even in a fairly simple transaction. Important decisions must be made concerning contract terms, escrow matters, transfer of title, apportionment of costs and any number of other matters. Also, bear in mind that a simple missing word, or a mistake in grammar can create a dispute which, in turn, can give rise to a lawsuit. Also keep in mind, buyers who look for “FSBOs” may offer up to 10% below the price of comparable properties because they know you are not paying a commission.

Closing Costs
The seller sometimes assists the potential buyer by offering to pay some percentage of the closing costs.  However, the offered price for the home is sometimes raised in this situation. In effect, the buyer reimburses you for your contribution. Depending on the mortgage program that the buyer has chosen to use, the amount of closing costs the seller can pay may be limited.  This limit may be percentage-based or it may depend on the size of the buyer’s down payment.  Some Veteran’s Administration (VA) mortgage programs allow the seller to pay all of the closing costs.

Repairs
The cost of preparing your home for sale is highly variable.  If you merely clean and apply a coat of paint to the interior walls, your repair costs will be insignificant.  However, if you determine that the home will sell for more with a new roof and an enclosed patio, the cost of making these modifications could be quite high.

Naturally, these are not the only possible repair costs.  Home inspections often reveal problems that the seller is obligated to repair or update before the sales transaction can be finalized.  Sometimes the buyer is willing to assist with these costs, but at other times the seller must bear the burden alone.  Depending on the age, location and style of your home, as well as its upkeep over time, the home inspection may be favorable or unfavorable for the seller.

You can often reduce the unexpected cash outlay by getting a home inspection of your own before placing your home on the market.

Advertising Costs
When you opt to sell your home with a REALTOR®’s assistance, you avoid the expense of advertising your home for sale.  However, if you opt to sell without an agent in the hopes of avoiding the agent commission, you are responsible for all the advertising costs. These costs can be insignificant or substantial, depending on the location, the type of advertising you select, and the number of people who pass by your home daily.

A REALTOR® will advertise your home to other agents in the area. They will then pass along information to their clients, which are potential buyers.  REALTORs® are experienced in successful advertising, and they will do everything possible to make sure you are pleased with the results.

These are some of the costs to expect when selling your home; however, you may not encounter all in this list.  Contact a REALTOR® for more information.