Home sellers often believe that the realtor commission is their only out of pocket cost when selling a property. That is far from reality, as there are a number of costs in a traditional sale that eat into a seller’s bottom line. Some of these include:
Home sellers are responsible for a variety of expenses related to the sale of their home often called “closing costs”.
Closing costs in the Capital Region can include items like New York State transfer tax, county taxes, title insurance, title company escrow fees, home warranty policy fees, attorney fees, recording fees, etc. All together these costs can add up to about 1.2% of the price of the home. For instance, for a home selling for $200,000 in the New York Capital Region, the seller will pay about $2400 in closing costs.
Concessions to Buyer
In order to get their house sold, the seller may contribute 2%-3% of the purchase price of the home toward the buyer’s closing costs, to help offset buyer expenses such as the mortgage recording fee or mortgage origination fees (3-7%).
This is especially true if the home is a starter home or is priced at or below the average price for the area. Buyers purchasing for the first time often do not have the cash need to cover both the down payment and closing costs. As an example, if the home is selling for $200,000, the seller might be asked to contribute $3,000-$5,000 towards the buyer’s closing costs.
These concessions reduce the funds the seller receives at closing and eat away into being able to cash out their equity.
Repair Credits after Inspections
After the contract for the sale of a home is signed, the buyers will have time to conduct a thorough home inspection. If they find repairs are needed, they may either walk away from the contract (which they are allowed to do), ask the seller either to make the required repairs at the seller’s expense, or give the buyer credit for the repairs at closing.
Even when the home is in “good shape” there are always items that come up in the inspection report ranging from one to several thousand dollars.
Home Preparation and Staging
If you sell your home the traditional way, your realtor will list it on the MLS. Buyers expect homes listed to on the MLS to be in good condition. Before listing your property, your realtor will likely ask you to make repairs and at least freshen it up with new paint, maybe some new fixtures and even new carpet or flooring, so your home is attractive to potential buyers.
At the very least, your realtor will ask you to declutter the home and pay storage for items removed from the home. They might even hire a “home stager” to reorganize your furniture and perhaps bring in more modern furniture and decorative items to attract potential buyers, at your expense of course.
These costs can add up to several thousand dollars.
Most buyers in the Capital Region will apply for a mortgage to finance their purchase of a home. Before giving the buyer a mortgage, most banks will get the property appraised to make sure it is worth what the buyer agreed to pay for it.
If the appraisal shows that the purchase price agreed to between the buyer and seller is greater than what the appraiser thinks it’s worth, the bank will ask the buyer to make a larger down payment. If the buyer does not have those funds, they will likely ask the seller to reduce the price or contribute more closing costs to the buyer.
Real Estate Commissions
Last but not least, the seller is for paying the commission fees of both their agent as well as the buyer’s agent. The total commission in the Capital Region, depending on your realtor, is 5- 6% of the purchase price. So if you are selling your property for $200,000 through an agent, $10,000-12,000 of the sales price will go to your agent and the buyer’s agent.
When you add all the fees hidden from plain sight, it’s clear that the cost of selling goes beyond just real estate commissions. All in all, it’s not unusual for the seller to pay more than 10% of the price in expenses, fees, commissions.
Another Way to Sell Your Albany NY Capital Region Property
When you sell your home for cash to Capital Region House Buyers , you avoid many of these costs because:
We pay ALL closing costs associated with the sale.
Make no repairs or provide any inspection credits – we buy your house AS-IS
You won’t pay real estate commissions because we are direct cash buyers
No closing costs concessions are necessary because we pay cash.
Sell in 3 easy steps
Are you ready to get cash for your home and move on with your life? You can sell your home for cash directly to Capital Region House Buyers without ever putting it on the market. You don’t have to worry about repairs, showings, concessions, closing costs or commissions. Sell your home today in 3 easy steps:
Go to CapitalRegionHouseBuyers.com and enter your address and information
We will make you a no-obligation cash offer within 24 hrs
You can close on your home in as little as 2-3 weeks or on your moving timeline.