Who Pays What Closing Costs When Selling House by Owner

Who Pays What Closing Costs When Selling House by Owner (FSBO)?

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Seller closing costs average 8% to 10% of the sales price. But how much does the seller pay if they’re selling the house themselves?

Sorry to say the closing costs you pay at an agent-assisted sale are the same if you sell FSBO, with the exception of the real estate agent commission.

Who pays what at closing can depend on your location but more so on how negotiations with the buyer go. Real estate agents help sellers and buyers get the best deal, so each party pays a fair dollar amount. But if you have no representation, and the buyer does, you need to know what you’re doing, so you don’t end up paying a larger portion of the real estate closing costs.

What are the Seller Closing Costs?

What follows are the common closing costs a seller typically pays when finalizing a home sale.

Buyer’s Agent Commission (~3%)

What? But the whole reason for selling FSBO is to save money on commission fees. Sorry. The truth hurts, and we don’t like saying it, but the seller is responsible for the buyer’s agent fees.

If you had a seller agent, you’d pay a 6% commission that would then be split between the seller and buyer agents (3% each). Since you are selling FSBO and do not have representation, you’ll pay the seller’s agent 3% of the sale price.

So let’s say you sold your house for $200,000. You would end up paying the buyer’s agent $6,000, which is still better than if you had representation too, in which case you’d dole out $12,000.

When You Know the Buyer

57% of FSBO sellers know their buyers, so neither party needs representation. Instead, you’ll each hire a real estate attorney to handle the necessary paperwork at the closing table. This way, you can save the 3% and put that money back in your pocket.

When You Need to Find a Buyer

If you do not have a buyer lined up, and you don’t want a seller agent to help you find buyers, you can still benefit from paying a real estate agent a flat commission fee to list your property in the MLS. 

Potential buyers will find your house For Sale By Owner and have their buyer agent contact you to schedule tours. A good buyer agent will have already secured a pre-approval document from the buyers, indicating how much they can afford, which also serves your best interests.

When getting offers from regular home buyers, always ask for their mortgage pre-approval document.

Why do Buyer Agents Want a Fee?

Homeowners who sell by owner (FSBO) often have no concept of the responsibilities they are assuming and can make costly mistakes. You will have to do the common tasks of a listing agent, who knows where to list, how to list, how to boost your property appeal, perform market analysis, and market to find you qualifying buyers and filter out looky-loos.

On the other side, the buyer’s agent wants compensation for bringing their buyer(s) to you. They help arrange showings and qualify the buyer, and since there’s not a seller agent, they often shoulder more responsibility, getting parties to the finish line.

Think of the buyer’s agent commission as your way of saying “thank you” for their efforts. You can pay them the 3% (or whatever percentage is normal for your area), a flat fee, or reduced fee (if they accept).

Pre-Listing Appraisal ($400-$600)

A real estate agent conducts a comparative market analysis and pulls comparable properties to help you determine a fair asking price. Since FSBO sellers do not have access to these helpful resources, flying solo and all, they need to find another way to accurately price their house for sale.

Pricing a property wrong can cost you buyers or dollars. If you price it too high, it’ll likely sit on the market till you bring the price down, and if you price it too low, you may lose out on more money.

A pre-listing appraisal (or pre-listing inspection) is when you hire a professional home inspector to identify potential repairs and estimate the value of your property. This way, you’ll have an idea of the repairs a buyer might ask for and can address them before you list.

Seller’s Attorney Fees ($150-$350 per hour)

FSBO sales warrant legal and professional oversight to avoid legal snafus. A real estate attorney prepares and reviews documentation, including the purchase agreement, mortgage contract, title papers, transfer documents, and necessary disclosures, to make sure everything is legally sound and correct.

Transfer Taxes (0.01%-4%)

Transfer taxes are incurred when you transfer ownership of the title of a property to another party. It’s essentially a transaction fee charged by state AND local governments when real estate changes hands. Transfer taxes are calculated based on the sale price of the house and the tax rate for the state, county, and city you live in.

13 states do NOT charge a transfer tax: Alaska, Idaho, Indiana, Louisiana, Kansas, Mississippi, Missouri, Montana, New Mexico, North Dakota, Texas, Utah, Wyoming.

Property Survey Fees ($300-$800)

Also known as a boundary survey, a property survey is a precise, professional measurement of a plot of land a house is built on. Property surveys are important when building additions, because you need to know the property lines.

Unless you have a recent copy, you’ll need to pay a surveyor to create a property (or land) survey. The survey will serve as a legal documentation of the topography and boundaries of the property and be part of the record of sale.

Who Pays What Closing Costs When Selling House by Owner buyer closing costs What are the Buyer’s Closing Costs?

The average closing costs for a buyer are 2% to 5% of the loan amount. So what does the buyer pay for at closing that the seller does not?

Loan Origination and Processing Fees (1%-3% of the Loan)

Loan origination and processing fees are essentially the lender’s fee for the preparation and evaluation of a buyer’s mortgage.

Buyer’s Attorney Fees ($150-$350 per hour)

Should a buyer not have a real estate agent, they need some form of legal representation to help them with the necessary paperwork without assuming legal risk.

Third-Party Appraisal ($400-$600)

If the buyer is taking out a mortgage, the lender will require an up-to-date appraisal to assess the value of the property versus the requested loan amount. This way, the lender will decide if they’ll lend out the money.

Professional Home Inspection ($300-$500)

More often than not, a potential buyer is going to hire a home inspector to check the condition of the property and uncover necessary repairs or improvements. A typical inspection includes the foundation, roof, plumbing, electrical system, HVAC, and other systems, plus any water damage, mold, or evidence of termites.

Recording Fees (varies)

Recording fees are charged by the county to make the purchase of a property a matter of public record. Recording documents include the sale price of the property, number of pages and documents, and the mortgage value. The cost varies by county and sometimes depends on the size of the document.

Negotiable or Split Fees

You may be able to negotiate or split additional closing fees with the buyer before closing day. Again, without representation, you’ll have to look out for your best interests but also make an attractive deal for the buyer.

Seller Concessions or Closing Cost Credits (varies)

A seller concession is a closing cost you (the seller) agree to pay. Why would you do this? To sweeten the deal and entice buyers to make an offer, of course. Also, in some states some concessions are customary. For example, in Texas, house sellers often pay for a year of the home warranty.

Another example: let’s say you need to sell your house fast, and you want to avoid repairs. You might lower your asking price to make up the difference in repairs, which the buyer will then pay out of pocket post sale. Keep in mind though, this only applies to minor repairs that the buyer’s lender doesn’t deem necessary for the buyer’s mortgage approval.

If a lender requires extensive repairs, you really only have two options at that point: (1) make the repairs or (2) sell to a cash buyer who purchases houses As Is.

Seller concessions may also include a couple months of HOA fees, or making a monetary contribution towards buyer closing costs or escrow fees.

Settlement Fees ($800-$2,000)

The title company, escrow company, or real estate attorneys charge a handling fee for final paperwork and distribution of funds to the appropriate parties. Settlement fees cover costs associated with closing costs, including title search fees and loan origination fees, plus any expenses that are in excess of what a person pays to sell or buy a property. The numbers vary by loan amount, property value, and city.

Property Taxes (varies)

You (the seller) need to settle all property taxes accrued during your time owning the house up to the date of closing. The buyer will assume responsibility for property taxes after the closing date.

It’s not uncommon to prorate (or split) the property tax bill by a portion of time, such as by the number of days (for the portion of the tax year) a homeowner owned (or will own) the property, between the buyer and seller.

Title Fees (1%)

Title fees encompass a number of items, including:

Title Search ($75-$100)

A title search discovers any discrepancies with the ownership of a property. For example, it might uncover outstanding liens or a claim on the property. Maybe the seller is not the legal owner, or they share the title with a sibling, as can be the case with an inherited property. A real estate transaction cannot be completed without a clean title.

Owner’s Title Policy (0.05%-1%)

The owner’s title insurance policy protects the homeowner in the rare case a valid claim against the property comes up which the title search missed. It’s not unusual for the seller to put up a one-time payment for the owner’s title insurance.

Lender’s Title Policy (0.05%-1%)

A lender’s title insurance policy protects the lender should a title defect be discovered. Lender’s title insurance is often required to get a mortgage loan, but it does not protect the buyer’s investment in the property (their equity) – that’s what the owner’s title insurance does.

Skip Paying Closing Costs and Repairs When You Sell to a Cash Buyer

Rather than deal with closing fees or the usual stress of a sale by owner, consider instead selling to a real estate investor. Most investors pay cash for a property “as-is”, so your house can be damaged, in need of repair, or mid-renovation. 

Their offer will deduct repair costs, since the investor fixes up the house on their dime, BUT STILL you’ll be saving money. How?

  • First, because they pay cash, an investor does not need mortgage financing;
  • Second, an investor does not require an appraisal nor an inspection, so you can go straight to closing; and
  • Third, most investors cover both buyer and seller closing costs and additional sale fees, and don’t ask for or expect any concessions, putting money back in your pocket for moving costs.

Finally, neither you nor the investor needs representation, so there will be no real estate agent commissions.

SolidOffers is happy to connect homeowners like you to trusted investors in your real estate market, so you get the most out of selling by owner, without any of the hassle or costs. Click below to request a free, no-hassle offer today.

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Can I Sell My House Without a Realtor?

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The short answer is yes. You CAN sell without a realtor. However, if you are thinking of selling your house by yourself, understand that the process is far from easy.

Before you decide if you want to sell your house without a realtor or real estate agent, you must understand the benefits and drawbacks of selling it by yourself. 

Selling a House By Owner (FSBO)

There are no rules that require you to sell your house with an agent, though it’s the most common way of doing it. When you decide to sell without a realtor, regardless of how you do it, it’s called “For Sale by Owner” or FSBO. 

Pros And Cons Of Selling Without A Real Estate Agent

Pros 

  • Avoid paying thousands of dollars in agent commissions. Let’s face it, this is the main reason why homeowners decide to be FSBO sellers. It’s to eliminate the 6 percent in commissions. On a $200,000 house, that comes out to $12,000.

 

  • You control the transaction.  Since you are not working with an agent, you can set your own price, market the house the way you want to, and never feel pressured by a realtor to make changes that you don’t want to make.


  • In a hot market, the house may “sell itself”. When there is more demand than available houses for sale, finding interested buyers doesn’t take as much time or work. Sometimes, they find you if there is an FSBO sign in the front yard. 


  • It can be faster! The National Association of REALTORS reported that in 2020, 77% of houses on the market without an agent sold in under 2 weeks. The reason was the seller sold it to an acquaintance or a real estate investor.

Cons

  • You may still pay agent commissions. This is something not all sellers are aware of with FBSO. Even if you don’t pay a listing agent, you may still have to pay the buyer’s agent, which is 2.5% to 3% of the final sale price.


  • You are responsible for the paperwork. 10% of FSBO sellers rank this as the hardest part of selling a house. There is a lot of paperwork, and while not all states require a real estate attorney, sometimes it is worth it to ensure that everything is done right and to avoid potential problems, which adds a cost to the selling process.


  • It takes up a lot of your time. There are three parts to this 1) the time to find the buyers, 2) to do the showings, and 3) the process itself. Most homeowners selling without an agent have fewer resources to market their property, which means fewer buyers are aware of it. In fact, only 6% of FSBO sellers list on the MLS, which is how most homebuyers find a property. And when there are buyers, you, as the FSBO seller, are the one doing the showings and negotiating with buyers. So when you get an offer, you have to draw up the sales contract and get the process going.


  • It can take longer to sell. Less visibility means fewer prospecting buyers, and not all offers become a reality, as one of the aspects of working with an agent is to ensure that buyers are giving offers they can actually get approved for with a lender. If you want to sell fast by yourself, the safest bet is to sell to a real estate investor.
Hardest tasks for FSBO sellers

Important Takeaways

Selling your house without a realtor can save you money in commissions, but you may still have to pay the buyer’s agent fee. Selling a house by yourself can require a huge time commitment and paperwork, and in some states also require a real estate attorney. The best alternative to save money, sell fast, and avoid the extra work is to sell to a real estate investor.

The Alternative to a Realtor and FSBO: Sell to an Investor

The truth is, selling by yourself is a lot of stress because you do all of the work of a realtor while still juggling with life. Perhaps the better question then is not “Can I” but “Do I want to sell my house without a realtor?” If your answer is still “Yes,” but you don’t want to deal with the stress of FSBO, consider then selling to a real estate investor.

Most investors make a cash offer on a property “as-is.” They do not ask for repairs or improvements, nor do they require an inspection or appraisal. They do away with most traditional sale warranties, and because they pay with cash, there’s no lengthy mortgage approval. Investors also cover closing costs and additional sale fees, saving you money!

You can enjoy a quick closing, on a date of your choice, in less than 30 days, and move into your next home right away!

when to lower your asking price on a house

When to Lower Your Asking Price on a House

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Has your house been sitting on the market for a while? Have you gotten any offers? You just don’t understand it: it’s a seller’s market, and maybe you chose the best time of year to sell, but still you have no offers. Perhaps the issue, then, is your asking price.

When is it time to consider a price reduction? And by how much should you lower your price?

4 Signs You Should Lower Your Asking Price

How long has it been on the market?

A house that’s set at the right price from the start will get offers within the first few weeks. If it’s been 5 weeks or more since you listed, it may be time to lower the price, or even delist it.

Delisting your house gives you a chance to make improvements and relist later, so the listing is “fresh” again.

Listen to Buyers

Have you had multiple showings but received no offers? This is an obvious red flag that something’s wrong.

Do not be afraid to ask buyers and their realtors for feedback. If the majority say, “It’s too expensive,” or “Out of our budget,” or the like, then it’s time to drop the price.

Know Your Market

We’ve been in the midst of a seller’s market for some time now. A lot of buyers are shopping the market, but inventory is low. Most times, this means properties sell faster, but the market does not guarantee a sale if the price is too high.

Search comparable properties in your area to answer the following:

  1. Are they selling fast or lingering?
  2. If they sold, how much did they sell for?
  3. What is the average time a house sits on the market (in your neighborhood)?
  4. How many houses (in your area) had a price reduction?
  5. How long did it take houses to sell after a price cut?

If you’re past the sell-by-date for your area, it may be time to cut the price or delist for a while.

Your Property Appraised Low

Buyers who take out a mortgage are required to appraise a property to confirm its value. If the house appraises too high or too low compared to the selling price, the lender may refuse to loan them the money.

Sellers should get an appraisal of their property to find out its true value and decide its asking price.

By How Much Should You Cut the Price?

Choosing when to reduce the price and by how much is never easy. The timing is important, and the price reduction must be worded just right so as not to raise buyer suspicion.

If the price is too low, buyers will think there’s something wrong with the property, and you may lose thousands of dollars. If it’s still too high, buyers will continue to avoid it to save their time and budget.

Most times, the average price cut is 2.9% of the list price. Your best ally, though, in changing the price is your real estate agent. They can tell you if the price is too high or unrealistic, and they should have an understanding of market trends to properly evaluate your property.

4-Point Price Reduction Strategy

  • Act Fast: if the number of showings versus offers in the first few weeks is not good, don’t wait to reduce the price. Otherwise, you may have to delist.

 

  • Be Realistic: sometimes a price adjustment, even one that’s slightly lower, is worthwhile, compared to accumulated mortgage payments and utility costs over the time of the listing. Ask yourself: what’s the lowest you can go but still make a profit?

 

  • What are Other Sellers Doing: again, look at comparable properties, with or without price cuts, and how long it took them to sell.

 

  • Reduce the Price ONLY Once: multiple small reductions go unnoticed by buyers. Make a single significant cut to jump-start interest in your property.

Sell for a Price Cut Out in Cash

Rather than speculate markets, buyers, and prices, consider selling to a real estate investor for a cash offer. Most investors pay cash for a property “as-is”, without warranties, inspections, or repairs. They cover all closing costs and additional sale fees, but you pick the closing date, which can be in several months, 30 days or less.

Most investors pay 70% of the market value AFTER repair value. But if the property is in good shape and in a good location, they’ll pay the market price or 2% to 3% less, which is still more than most sellers get with a traditional sale, since their agent takes a 3% to 6% commission.

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How Much Do Real Estate Agents Get Paid? Fees House Sellers Should Know

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Real estate agent commissions take the biggest cut of your house sale. Is it worth it then to even hire an agent or realtor? Or should you sell your house for sale by owner (FSBO)? Here is a rundown of real estate agent fees to help you decide.

What Are You Paying a Real Estate Agent to Do?

Seller agents may do the following:

  • Assign a fair, accurate price to your house.
  • Market your house across the MLS, social media, and print marketing.
  • Schedule walkthroughs.
  • Advocate for you when dealing with house inspectors and appraisers.
  • Help negotiate terms of sale between you, the buyer, and buyer’s agent.

How Much Does a Real Estate Agent Get Paid?

An agent earns commission upon sale of the house. Typically, their cut is 6% of the sale price, though a recent survey shows the national average is 5.45%. This downward trend is attributable to competition and a shortage of houses for sale in certain markets.

You can negotiate agent fees by arguing these points:

  • Time it takes to sell: if the house sells fast (in less than a month).
  • Anticipated sales price: if your house is priced high (e.g., $500,000s and up), a low rate is still a good chunk of change.
  • Buyer’s agent: if there is no buyer agent for the commission to be split with.
  • Agent’s workload: if you take on some responsibilities in the home sale process.

 An Agent Does Not Keep What They Earn

An agent does not keep all of the commission because they do not act alone. Most agents work under a real estate broker. The broker, then, takes half of the agent’s commission.

The seller agent then splits the commission with the buyer agent, and they with their brokerage. If we do a quick calculation, as an example, here is how it might play out:

  • Your house sells for $250,000;
  • 6% of the sale price is $15,000;
  • each brokerage gets $7,500; and
  • the brokers each pay their agents $3,750.

Once paid, your agent has to cover expenses. These include membership dues to real estate institutions and technology, but also money spent to market your house. You can see then that an agent does not make a huge profit. That is why they handle multiple house sales at a time.

Who Pays the Real Estate Agent?

You, the seller, pays both the buyer and seller agents. True, the buyer is purchasing your house, but it is out of your profit that the 6% is paid to these agents.

Instead of an Agent, Sell to an Investor

If you want to forgo agents and commission rates, consider selling to an investor. Most investors will make a cash offer on a house, regardless of how it looks and without a buyer agent. You, then, only pay your share of closing costs. You enjoy a quick closing and a profit which you then use as a down payment on your next house.

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How to Sell Your House by Owner (FSBO)

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Selling your home by owner, without an agent, is possible. It can be a challenge, but once you know the process, it is doable. All you need is a strategy with an outline of key steps.

Step 1: Determine the Fair Market Value

This step is crucial. If you price the house too low, you walk away with less money than it is worth. Price it too high, and the house could sit on the market for months.

Use online real estate valuation sites, like Zillow or Trulia, to get an estimated value. This could be off by thousands of dollars, so get a second opinion. Ask a real estate agent to provide a competitive market analysis. This service is typically free but may come with a sales pitch. To avoid this, pay a licensed appraiser for the most accurate estimate.

Step 2: Prep the House for Sale

Pretend you are the buyer and walk through your house. What might a buyer notice and not like? Are there flaws? What about needed repairs? You must be objective. If necessary, bring in an outsider, like a professional stager or home inspector.

Buyers want to envision themselves living in your house. Declutter and clean living spaces to make them visually appealing. If you are too busy, hire professional cleaning services.

Step 3: Market For Sale By Owner

There is no single way to market a house. For sale by owner (FSBO) listings appear on consumer-facing listing sites like Zillow all the time. Consider listing on the multiple listing service (MLS). It is the largest, most accurate database of for-sale homes. Only licensed real estate agents can post on the MLS, but for a flat listing fee, an agent will list your house.

Traditional market house options include yard signs, flyers, and open houses. If you market your house online and use these options, you improve your chances of selling. The house gets noticed, and buyers will schedule walkthroughs.

Step 4: Negotiate Terms of Sale

Sell by owner means you must negotiate terms of sale with buyers and their agents. Be prepared for give-and-take situations. Buyers will offer less than your asking price and may ask for seller concessions. These include you paying for the appraisal, inspection fee, or a portion of the closing costs.

Step 5: Handle the Closing

Closings are legal matters overseen by closing attorneys or title agents. Once you choose the desired party, they will outline the required procedures. It is important to keep buyers in the loop. The biggest obstacle is the buyer’s mortgage. If it is not approved, the deal falls apart. Keep the mortgage agent informed of closing details as well.

Skip These Steps

If you would like to forgo these steps, consider selling your house to an investor. Most investors will make a cash offer regardless of how a house looks or its condition. You can enjoy a quick closing with fewer steps, less paperwork,  and stress.

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What Makes Your House Unsellable

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Most things can sell at the right price, but a home is a big investment, so buyers are more scrupulous. This is where they are going to live, so it needs to be “just right.” Here are 7 items that can make a house unsellable.

Undesirable Location

Location, location, location! It matters. Few buyers are willing to live near an airport, railway, or busy highway because of noise. Living next door to loud neighbors is a turnoff, and a dicey neighborhood with a high crime rate is unnerving. High-risk disaster areas and flood zones scare many buyers away. Most times, a house in a bad location can only be sold at a low price.

Outdated Home Style or Décor

Would you want to live in a home that looked like the set of “That ‘70s Show”? Most buyers want a home with the latest interior trends and new materials. If you want to sell, you may have to fork over the money for renovations.

Mold and Dampness

Visible signs of a leak concern most buyers. They worry if a home has a dampness issue, this could present later problems, like harmful mold. Dampness could be due to bad plumbing or a leaky exterior, and no one wants to buy a home that needs immediate repairs.

Neglected Maintenance

It is one thing to be busy or short on funds, but if you neglect maintenance – your house deteriorates. Buyers often have enough money to buy a home but not enough left over to make repairs. You will have to invest the time and money to make these repairs yourself, or with the help of a professional, to pass a home inspection. If the cost in time and money is too high, your best option is to sell to an investor. Investors look specifically for properties in need of repair, so you can sell quickly and easily without spending any money on it.

Bad Odors

Have you ever entered a space and been offended by a bad smell? Imagine how your buyers feel if your home smells like a vet office, with so many animals, cages, and litter boxes. Or what if you or another member of the house smokes? Cigarette smoke is a major turnoff, as its odor becomes trapped in materials like carpeting.

Lack of Natural Light

No one wants to feel like they live in a cave. Windows and natural light make spaces feel open and bigger than they really are. You can paint a room white to make it seem brighter or add windows or skylights to let in light.

Cluttered, Not Staged Home

Buyers want to envision themselves in a home when they visit for a walkthrough. If your rooms are cluttered with belongings, this becomes difficult and makes rooms appear smaller. You must throw stuff out or donate it, then clean and stage your home, so it makes a good impression.

If you do not have the time, funds, or ability to address the aforementioned items, consider selling your house to an investor. Most investors will make a cash offer despite location, damages, or outdated designs, and most times without a walkthrough. You can enjoy a quick closing and offload your problem house.

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When is the Best Time to Sell a House?

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Knowing when to sell a house can help you sell fast, for the most profit and less stress. Timing often depends on your location, and understanding the seasonal trends in the real estate market can help you decide when is the best time to sell.

Spring

PROS: For many markets, spring is the peak time to sell. Homes sell faster and for more money in the first two weeks of May than any other month. The days are warmer, longer, and buyers have more money after tax refunds. Buyers are also eager to close before school lets out, so they have the summer to move.

CONS: Springtime blooms competition. The market floods with homes for sale, and to stand out, sellers typically offer buyer compensations. There are fewer walkthroughs if the weather is still cold and wet, and should you sell fast, it can be difficult to move if the kids are still in school.

Summer

PROS: Summer is a great time to sell if you live in a popular tourist destination. Buyers looking for a summer home or new retirees looking to downsize eagerly shop the market, feeling a sense of urgency to close fast before the fall season.

CONS: Summer vacation can mean a slow buyer turnout. Buyers are out traveling, having fun, and the few buyers you attract may demand more concessions and features, sensing the lack of competition and your desire to sell.

Fall

PROS: Fall is neither the best nor the worst time to sell a house. The market slows down, so there is less competition, and buyers feel motivated to close before the winter holidays. Moreover, the costs for repairs and renovations are at their lowest.

CONS: In autumn, leaves fall, but buyer demands rise. Most buyers are preparing for the coming holidays and prefer to spend their money on gifts and festivities rather than a new home unless you offer them enticing incentives.

Winter

PROS: Winter is not a bad time to sell a house. There is often less competition, and buyers are highly motivated to close before the year-end to take advantage of tax breaks. Should you live in a resort area or ski town, you will meet more buyers looking for winter homes, but they may have more demands.

CONS: Winter is the holiday season. Buyers are engaged in seasonal fun. If you try to sell, you will have to depersonalize living spaces and decorate less, and you may have to navigate walkthroughs with your family over. The days are colder, shorter, and winter is the worst time to make repairs and renovations.

Life happens, and you may not have a choice as to when you sell. If you need to sell fast and skip buyer negotiations, consider selling your house to an investor. Most investors will make a cash offer regardless of the time of year, weather, or market trends. You can enjoy a quick closing and find time for your next move.

Closing cost of selling a house

How Much Does It Cost to Sell a House?

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Selling a house can be a costly venture. Sellers often have no idea just how much money goes into selling a home till closing day. Some expenses are negotiable, and others might be waived. Here is an overview of the costs to sell a house so you can plan and budget for them.

Real Estate Agent Commissions

Realtors often receive 5% to 6% of the selling price on a home, and this commission is divided between the seller and buyer agents. An agent does a lot of work, from arranging tours to updating listings to handling paperwork to negotiating with buyers. Sellers can sell without an agent, but this means more work, as well as the loss of leverage that comes with an agent’s knowledge of the market.

Seller Concessions Cost

Seller concessions are buyer expenses a seller agrees to pay, such as a portion of the closing costs, appraisal fees, or inspection fees, to help sweeten the deal, so a buyer is more likely to close on the house. Their loan type often limits the amount a buyer can ask for, but concessions help offset the cost of a higher offer in a competitive market.

Home Repairs

Most buyers do not want to purchase a fixer-upper, which will cost them more money in the long run. For this reason, if issues are found during the home inspection, buyers will ask the seller to make repairs as part of the ongoing negotiations to close the deal.

Home Improvements

Sometimes a home needs a facelift. This could be minor cosmetic work, such as painting the interior, or large upgrades like remodeling the bathroom or kitchen. These changes not only enhance the appeal of a home but its value as well.

Staging

When visiting, buyers want to envision themselves in the home. Sellers can hire a professional to stage the home for greater appeal. They can rearrange furniture, declutter and depersonalize rooms, and repurpose spaces in ways you never imagined. Professionals have their fees, and even if a seller does not hire a stager, they might still pay for professional cleaning services.

Closing Costs

Buyers and sellers pay closing costs. Sellers closing costs can reach 8% to 10% of the sale price. These can include the closing fee paid to the closing agent, property taxes, attorney fees, a transfer tax, title insurance, and the remaining balance of the seller’s original mortgage, as well as any interest accrued.

If you would like to save money, consider selling your home to an investor. Most investors will make a cash offer with fewer negotiations for the terms of sale, and regardless if a property is old or needs repairs. You can enjoy a quick closing, with fewer expenses, and keep a fat wallet.

how to sell house fast in 5 days cash

How to Sell a House in 5 Days

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Sometimes life throws you a curveball, and you find yourself needing to pack up and move. It could be the family is growing, or maybe the kids move out, and now there is too much room; other times, it is a change in careers or relocation. Whatever the reason, you need to sell your home fast. Here are 5 tips on how to sell your house in 5 days.

Tip 1: Offer Financial Incentives

Buying a home can be just as stressful as selling one. Buyers can feel intimidated, especially if this is their first home. Offering incentives can help buyers feel more confident and satisfied with their purchase. Incentives can include paying the first year of the home warranty or the first couple months of HOA fees, paying for part of the closing costs or repairs found during the home inspection, or including furniture and appliances with the home.

Tip 2: Price Your Home Below the Market Value

Buyers who watch the home market in your area are more likely to jump at a property that is priced at least 5% lower than the competition. If you receive several offers, you might spark a bidding war to get the best deal, which might be above your asking price.

Tip 3: Stage the Home Properly

Nothing puts off buyers like a crowded home. Sell what you do not need and get rid of clutter before cleaning and staging the rooms. You want to depersonalize and decorate so when buyers walkthrough, they can imagine themselves living in the home.

Tip 4: Make Necessary Repairs

If a home inspector finds issues with your home, it can slow the sale progression or put a buyer off completely. Consider hiring an inspector before listing the home to identify and fix those issues that might deter buyers.

Tip 5: Sell to an Investor

Selling to a buyer can take more than 5 days since most homebuyers have to get approved for a loan, and there are other delays like the appraisal and home inspection. At best, you might get an offer from a buyer in the first 5 days you list the home for sale. If you want to sell fast and forgo incentives, staging, and repairs, consider selling your home to an investor. Most investors will make a cash offer on a property regardless of its looks or state of repair. A cash offer saves you the time spent waiting for a buyer to get bank approval, and you actually save money with zero closing costs, repair, or cleanup costs. You can enjoy a quick, flexible closing in as little as 5 days and transition to a new home for that next stage of life.