When preparing to sell your home in Chicago, take the time to carefully evaluate your options before committing to an agent. While working with an agent can offer valuable expertise and market exposure, it’s essential to weigh the associated costs, including the costs of listing your home. Sometimes, opting for a direct sale can be a more financially advantageous choice. Educate yourself on all potential scenarios and run the numbers to understand the implications of each decision before signing a listing agreement that binds you to an agent. By conducting thorough research and exploring all your options, you can make an informed choice that aligns with your financial goals and maximizes your return on investment.
Here are just a few of the costs you might encounter when listing with an agent:
Commissions – 6%+ of the final sale price
Commission fees in real estate transactions are typically paid by the seller and are calculated as a percentage of the final sale price. While this percentage can vary, it commonly hovers around 6%. In addition to commissions, sellers may also be responsible for covering administrative fees, agent fees, and notary fees, depending on the specific terms agreed upon with the real estate agent. It’s important for sellers to clarify these costs upfront and understand how they will impact the overall financial outcome of selling their property.
Inspections – At least a few hundred dollars
Usually, as part of the closing costs, the buyer covers the cost of the inspection. However, as a strategic negotiation tactic, more sellers are opting to shoulder this expense themselves. Following the inspection, any necessary repairs are typically negotiated between the buyer and the seller. This approach can vary based on local customs and market conditions, so it’s essential for both parties to discuss and agree upon these terms during the negotiation process to ensure a smooth transaction.
Appraisals – A few hundred dollars
Typically, the responsibility for paying the appraisal fee falls on the buyer, especially when the buyer is obtaining financing through a lender. Lenders typically require a home appraisal to ensure the property’s value aligns with the loan amount. However, the appraisal cost can be subject to negotiation and may ultimately be paid by the seller as part of the closing costs.
In certain situations, sellers may proactively obtain an appraisal as a strategic move during negotiations. Keeping a copy of any appraisal conducted on your property is advisable for your records and can provide valuable insights into the property’s market value. It’s essential for both buyers and sellers to discuss and agree upon appraisal-related costs and procedures to facilitate a smooth and transparent transaction process.
Cleaning – $0 to a few hundred
Maintaining a meticulously clean home is essential when preparing to sell. A thorough deep cleaning, whether done by yourself or through professional services, is crucial. With open houses, surprise showings, and potential buyers visiting at various times, your home should be ready and spotless around the clock. If your schedule is already packed, outsourcing cleaning tasks may be necessary to ensure your home remains in pristine condition.
The cost of professional cleaning services can vary based on the size of your home and the level of cleaning required. Expect to budget $100 and up per cleaning session, depending on these factors. Investing in regular cleaning can enhance the presentation of your home and contribute to making a positive impression on potential buyers throughout the selling process.
Staging – $0 to a few hundred
If your home is already adorned with new hand towels, candles, vibrant throw pillows, and strategically placed houseplants, that’s fantastic! For those of us needing to achieve that “straight out of a catalog” charm, a bit of effort is required. Fortunately, this doesn’t have to break the bank; there are many cost-effective DIY options or great deals available at big box stores. Regardless of your approach, maintaining a tidy and cohesive space is key.
If interior decorating isn’t your forte, consider enlisting the help of a friend or seeking inspiration from platforms like Pinterest. Even a few well-chosen decor pieces can effectively tie a room together and create a warm, inviting atmosphere that resonates with prospective buyers. By focusing on small but impactful updates, you can elevate the appeal of your home and enhance its overall presentation during the selling process.
Repairs – Varies
As highlighted earlier, negotiations over repairs are a typical part of the home selling process. As a seller, it’s advisable to be upfront about any known repairs and indicate that these costs have been factored into your asking price. Offering a credit for repairs during negotiations can reassure the buyer and facilitate a smoother transaction. If new repair issues arise after a home inspection, these should be addressed and mutually agreed upon before finalizing the sale.
Being transparent about the condition of your property and proactive in addressing repair concerns can help build trust with potential buyers and demonstrate your commitment to a fair and transparent transaction. By addressing repair issues promptly and collaboratively, both parties can work towards closing the sale with confidence.
Bills While The Home Is On The Market – Varies (Can be hundreds or even thousands!)
Even if you’ve relocated while your home is on the market, it’s crucial to keep utilities connected. The timeline for selling a home can vary widely, spanning from weeks to potentially several months. Additionally, as the seller, you remain responsible for property taxes and homeowners insurance until the day of closing. If your home doesn’t sell quickly, which is common in many cases, these ongoing expenses can accumulate significantly.
Ensuring that utilities are maintained allows for continued showing readiness and helps potential buyers view the property in its best light. Likewise, staying current with property taxes and insurance coverage until the sale is finalized ensures compliance with legal obligations and avoids potential complications during the closing process. By planning ahead and budgeting for these ongoing expenses, sellers can navigate the selling period more effectively and minimize financial surprises.