Selling a house costs money. We consider these costs only when we are buying a home. However, selling will cost you money in Seymour CT regardless of the type of property. From realtor commissions to property taxes; there are costs every seller must pay. It is essential to be aware of these expenses before you put your home for sale. That way, you can get an accurate estimate of your profit from selling the house.
Cost of Selling a House in Seymour CT
Realtor Commissions
Real estate agents earn money through commissions. On an average, real estate agents charge you 6% of the sales price. Almost 3% commission goes to the listing agent, and 3% is paid to the buyer’s agent. This cost includes the time a realtor spends marketing your house as well as the legal work involved.
The commissions make up your biggest expense during the sale of your house. For a home, worth $180,000; the agent fee alone can cost you $10,800.
You can choose to sell your home by owner. You can benefit from marketing packages and flat-fee MLS services. However, in that case, you must be ready to spend time on showings and open house events. Statistics show that most buyers hire a realtor in one or other way to assist with the sale of their house. Furthermore, even if you choose FSBO, you might still have to pay the buyer’s agent.
Should you hire a realtor? There is no right or wrong answer. The solution depends on your situation. How much time do you have? Can you wait for 2-3 months? Do you want to sell your home at the retail market? If so, then hiring a realtor is probably the best option. However, if you are looking to sell your house fast in Connecticut, then the traditional route is not the best way for you.
Mortgage Payoff
Whatever the price of your house, you must pay your mortgage first. Review your mortgage documents to see how much you must pay. There might be an early payment penalty.
Property Repairs
Depending on the condition of your home, you might have to repair the interior or exterior. The cost depends on the type of repairs. Consult at least three contractors before improving your house.
Home Renovation
Each house can benefit from a fresh coat of paint. When selling a house, we do not recommend spending thousands of dollars but do take care of minor renovation projects. Wash/change the curtains. Make sure that all lights are working correctly. Add new door knobs, Take care of your lawn. Add a new carpet or wallpaper if necessary. Also, consider minor kitchen and bath remodeling. Do not forget the curb appeal factor.
House Staging
A professional staging service can help you sell your home fast. In fact, statistics show that 95% of the staged homes are sold within 11 days and for 17% more money.
Utilities
You will still pay for utilities when your home is empty and ready for sale. Be prepared to pay the cost of electricity, water, and regular services for 3-4 months before the new buyers occupy the house.
Closing Costs
Apart from the realtor commissions, you will also pay various closing costs. Expect to spend 2% of the sales price on closing costs. Here is a breakdown of the expenses:
Title Insurance:
It is customary for the seller to buy the title insurance for buyers. If you bought your house in last five years, you could ask your insurance company to transfer the plan at a fraction of the cost. However, for older homes, you must pay the full price of title insurance which can be 1% of the home value.
Property Transfer Taxes
In Connecticut, there are two types of taxes:
- Transfer tax (0.75%): If the value of your home is less than $800,000. For a house, worth $180,000 that amount will be $1,350.
- Municipal tax (0.25%): Some towns may impose a higher rate. For a house valued at $180,000, the municipal charge will be $450.
Will Selling Cost You Money in Seymour CT? How Can You Avoid these Costs?
Yes, selling a house will cost you money and there is a way to avoid paying for these expenses. Selling your home to a cash buyer results in a quick sale of your home. You do not pay any selling related fees including:
- Realtor Commissions
- Home Repairs
- Staging
- Utilities
- Title Insurance
- & Other Closing Costs
Selling to a cash buyer has other advantages as you can sell your home quickly, often within 10-14 days. You will get cash for your house, so there is no point worrying about delays or mortgage approval.
