Breaking Down the Cost of Selling Your Home with an Agent
Selling your home on the MLS, or Multiple Listing Service, can come with various costs. This sounds high but we can break it down for you. These costs can easily tally more than 10% of the sales price, as we show below.
Here are some costs you can expect
- Listing preparation - major repairs, cleaning, decluttering
- Marketing costs (photography, etc)
- Sales commissions
- Buyer requested repairs
- Seller concessions/buyer closing costs
- Carrying costs such as utilties, property taxes, and mortgage interest
- Transfer taxes, title costs
Cost breakdown - $200,000 sales price
Here is an example breakdown of the costs to sell a $200,000 home, assuming the home takes 90 days to sell from listing to actual closing:
Cost | Amount |
---|---|
Commissions | $12,000 |
Mortgage Interest (3 months) | $3,750 |
Utility costs (3 months) | $600 |
Property taxes (3 months) | $900 |
Closing costs | $2,000 |
Repairs | $5,000 |
Total | $23,250 |
It's important to note that these costs are estimates and may vary depending on specific circumstances. It's always a good idea to consult with a professional real estate agent or a real estate attorney before putting your home up for sale to get a more accurate estimate of the costs involved. If you do not want the hassle of this, and want to receive a fair price without all of these hidden costs, consider selling to ResiBuys.com
In the example above, you walk away with $176,750 before paying your mortgage:
Sales price | $200,000 |
Closing costs | $23,250 |
You receive | $176,750 |
Cost Breakdown Explained
Sales commissions
The most significant cost is typically the commission paid to the listing agent and the buyer's agent, which is typically around 6% of the final sale price. For a home sold at $200,000, this would amount to $12,000 in commission. This commission is usually split between the two agents, with the listing agent receiving a slightly larger percentage.
You can negotiate these commissions down. In some markets, it is more typical to pay 5%, split between both agents. There are also some agencies that offer a discounted listing agent commission because on the sale, the listing agent does not do as much work as the buyer's agent. The buyer's agent has to show buyers many homes and spend a lot of time, while the listing agent just inserts the listing into the MLS and waits for calls. They do some work outside of this, but not nearly as much as the buyer's agent.
Marketing expenses, repairs, etc
Other costs that may be associated with selling on the MLS include marketing expenses, such as professional photography and staging, as well as any repairs or renovations that may be needed to prepare the home for sale. These costs can vary widely depending on the condition of the home and the market in which it is located.
Carrying costs while waiting to sell
It's also important to note that there may be carrying costs associated with waiting for your home to sell. This can include accumulated property taxes, mortgage interest, utility bills, and any other expenses associated with maintaining the property while it is on the market.
Closing costs
Lastly, there may be closing costs that the seller will have to cover such as title insurance, escrow fees, and transfer taxes. These costs vary depending on state and local laws.
Comparing an MLS sale to a direct cash buyer sale
With ResiBuys, you can sell directly and immediately without worrying about all of these costs. We will offer you a fair, as-is price considering that we have to make a profit too. If we buy your home, we take a lot of risk. It may require more repairs or renovation than expected, material costs may go up during the repairs. It may not sell for a while and we will have to pay interest in the meantime, etc. But you will rest assured that you will receive your money within a few days instead of months later.
If you are interested in discussing further, give us a call or send us a message. Our contact information is below.