If you plan on listing your house in Chicago, there are costs to contend with before you list, during the listing process, once an offer has been made, and when you find yourself at the closing table. In our latest post, we will take a look at some of these listing costs so you can determine if a direct sale of your property would be the better choice for your situation.
The price to sell a house in Chicago can fluctuate greatly. It all comes down to the house itself, the needed repairs, the location, etc. Each agent will work a bit differently. Some will charge you for things, while others are “all-inclusive.” Before you commit to an agreement, find out what listing your house in Chicago will really cost you!
Upfront Costs
Before you even talk to an agent or get started on a listing, you will need to take care of the following things. Some you can do yourself, while others you might have to pay for. You might need all of these things, but they are all important to consider.
Cleaning
To create an environment that is appealing and welcoming, you will want to make sure the house is clean. You can do a good job yourself, but bringing in a professional to do a thorough cleaning of the house from top to bottom, can make the whole house look different. If you aren’t replacing the carpets or flooring, you will want to pay to have a professional clean those as well. Don’t neglect the outside. If you have a second story, it might pay off to hire a pro to come wash your windows!
Storage
While cleaning your home, it’s the perfect time to pack away all unnecessary items. Potential buyers prefer a clutter-free, depersonalized space, making it easier for them to envision themselves living there. Remove personal possessions and ensure everything is neatly packed away to create a more spacious and appealing environment.
Consider renting an offsite storage space or a portable storage pod to temporarily hold your belongings until you move into your new house. This keeps your home organized and minimizes distractions for buyers. By decluttering and storing your items offsite, you enhance your home’s appeal and increase its chances of selling quickly and for a better price in Chicago.
Taking these steps not only makes your home more attractive to potential buyers but also helps you stay organized during the selling process. A clean, uncluttered home can significantly impact a buyer’s impression, making it more likely to sell efficiently and profitably.
Repairs & Upgrades
Fix any visibly broken or worn items in your home. This includes repairing and painting walls, replacing cracked tiles, and smoothing floorboards. Taking the time to address these issues can significantly enhance your home’s appeal.
Consider making minor upgrades such as installing new fixtures or hardware. These small improvements can increase your home’s value and make it more attractive to buyers. Investing in these repairs and upgrades upfront can yield a higher return when you sell.
Being proactive with these tasks not only helps in presenting your home in the best light but also shows potential buyers that the property is well-maintained, making it more likely to sell quickly and for a better price in Chicago.
Landscaping
A beautiful listing starts with a stunning yard. The front yard is the first thing potential buyers see, so it should be well-maintained and inviting. Clean up the area and use it to showcase your home. Many homeowners enhance curb appeal by adding plants, flowers, new doors, or fencing. These additions can make your home stand out and create a lasting first impression.
Investing time and effort into your front yard can significantly boost your home’s attractiveness and value. A welcoming exterior invites buyers in and sets the tone for the rest of the house. Simple improvements like fresh landscaping and exterior updates can make a big difference in how your property is perceived, increasing its chances of selling quickly and for a higher price in Chicago.
While The House Is Listed
While the property is on the market, you will still find yourself paying to have it for sale. There are many expenses you will be paying during this time that you could avoid with a fast and direct sale upfront.
Monthly Costs
While your house is on the market, you will still need to pay monthly utilities. Even if you’ve moved out, it’s essential to keep the water and electricity on for potential buyers viewing the home. Additionally, you must continue paying homeowner’s insurance and property taxes up until the day of closing. These ongoing expenses can add up quickly.
You will also need to maintain the property, ensuring it remains clean and in good condition. Routine maintenance is crucial to keep the home appealing to buyers. Properties can sit on the market for an extended period, and once an offer is accepted, going through escrow can take several more weeks. This means it could be months before the house officially closes.
During this time, you could be spending thousands of dollars on utilities, insurance, taxes, and maintenance. These costs can significantly impact your finances, especially if you’ve already moved and are carrying expenses for two properties. Understanding these ongoing costs is important when deciding whether to list your home traditionally or explore other selling options, such as a direct sale, which could potentially save you time and money by closing faster and eliminating the need for prolonged maintenance and utility payments.
Marketing
Some agents offer excellent marketing, while others may not. To successfully list your house, ensure it features great listings and high-quality photography. Exceptional photos make your home stand out to potential buyers. Increasingly, people are hiring drone photographers to capture stunning aerial views of their homes. These aerial shots can provide a unique perspective, showcasing the property’s full potential and setting it apart from the competition. Investing in professional photography, including drone shots, can significantly enhance your home’s appeal and attract more buyers.
After An Offer Has Been Made
Once an offer is made and accepted, you remain responsible for insurance, utilities, and taxes until the day of closing. This period can extend by several weeks depending on the lender, increasing your expenses of owning the home. Most offers are contingent upon inspections and appraisals, which further prolong the process.
Alternatively, opting for a direct offer from a company that purchases homes as-is allows you to avoid these additional costs. Such companies streamline the selling process, offering a faster transaction without the need for inspections or appraisals, ultimately saving you time and money. This straightforward approach can be particularly advantageous if you’re looking to sell quickly or want to minimize the financial burden of ongoing homeownership expenses during the selling process.
Negotiated Repairs
Once the inspection is completed, negotiations may arise regarding necessary repairs, depending on their severity. Significant issues in the home may prompt the buyer to request repairs before proceeding with the sale, as banks are unlikely to finance a loan for a property in poor condition. If the buyer withdraws their offer due to unresolved issues, you’ll need to disclose these repairs to future potential buyers.
This disclosure is crucial as it affects the property’s marketability and may influence subsequent offers. Addressing repair requests promptly and transparently can help maintain buyer confidence and facilitate a smoother sale process. Alternatively, opting for a direct sale to a company buying homes as-is can bypass these negotiations and disclosures, providing a more straightforward and expedient transaction.
At The Closing Table
Commissions
When signing the final sale paperwork, you’ll also be writing a check to your agent for their commission, which typically amounts to around 6% of the final sale price of the home. This fee compensates the agent for their services in facilitating the sale, including marketing, negotiation, and paperwork handling.
It’s important to budget for this expense as part of the overall costs associated with selling your home. Understanding and agreeing upon the commission rate with your agent upfront ensures clarity and avoids surprises at closing. Additionally, exploring alternative selling options, such as selling directly to a buyer or investor, can sometimes reduce or eliminate the need for traditional real estate agent commissions, potentially saving you money in certain situations.
Closing Costs
Many additional fees are lumped together as closing costs. These include document filing, title search fees, credit check costs, transfer taxes, property taxes and more. On average, this will run you another 2% of your final sale price.
Once you add up all the costs, you can see that listing may not be right for every property. Many people find greater benefits by choosing a direct sale! Run the numbers for yourself, and make the decision that works best for you!