Once the big decision to sell your home has been made, the next step is deciding how to sell. When making this decision, it is very important that you understand all of the costs involved, some of which the agent may not be able to provide. We will outline 5 costs homeowners face when selling with a Long Island real estate agent
Real estate agent commissions are among the highest of the costs homeowners face when selling with a Long Island real estate agent. These commissions are based on a percentage of the sale price of your house. Typically, you will find the commission of at least 3% per side, so if you sell your house for $400,000, you would have to pay $24,000 out of your proceeds in commissions alone, along with the traditional seller’s closing fees and other possible transaction fees to the closing agent and the real estate agents office. Along with the commission are the traditional seller’s closing fees. You may possibly owe transaction fees for the closing agent and the real estate agent’s office as well.
Other Professional Fees
Professional appraisers and home inspector fees are also found among the traditional costs homeowners face when selling with a Long Island real estate agent. When you use a real estate agent, the first step in the approval of a mortgage is the property appraising for enough to meet the terms of the loan the buyers have qualified for. Additionally, the buyer’s agent will almost always order an inspection of the property. There may also be fees for the closing agent handling the transaction, in addition to the closing costs you are already responsible for.
Depending on the age of your home and the state of maintenance the property is in, it may be wise to have your own inspection performed, prior to listing. By being prepared ahead of time, a professional can help you understand just what you may be facing financially, in terms of a traditional real estate transaction. If the inspector should find something wrong with the property structure, or other issues with the property that need repairs, they may require you to fix it out of pocket before the property closes. The potential costs can run into the thousands and become yet another expense homeowners face when selling with a Long Island real estate agent, possibly even more than the commission you’ll pay to the real estate agent.
Advertising can be a rather expensive aspect of costs homeowners face when selling with a Long Island real estate agent. Listings typically include high-quality professional photography, so that the listing stands out among the competitors on the top internet pages for home searches, including the MLS. When working with top producers, you can expect staging to be another item you will be responsible for within the advertising budget. Be certain you carefully review this section of the listing agreement with the agent and ask questions about anything that isn’t set with specific limits. Their version of updating the property and what you have agreed to perform in order to meet their standards, with an unlimited budget, may not meet with the realities of your checkbook.
Holding onto one property when circumstances force you to move into another means that you will be responsible to carry the expenses for both for an indeterminate period of time. Many sellers find their home is stagnating on the market while they sink under their monthly bills, including those to do the smaller maintenance tasks or take on the additional burdens on their time, bearing the expense of traveling between the two properties to perform the tasks. Sadly, while real estate agents are busy laying out all the plans to sell your home, the one thing they cannot guarantee is that your property will sell. This can lead to your home painfully lingering on the marketplace, which in itself becomes another cost homeowners face when selling with a Long Island real estate agent. Additionally, traditional house sales contracts usually include buyers meeting qualifications from banks, allowance for the mortgage underwriting time, and property inspection. Last but not least, your buyer may not end up qualifying, in the end, leading to starting your listing over again and an even longer period on the market.
Why spend a fortune when there is no guarantee your property will actually be sold by an agent? Work with CoMax Properties and avoid all of the expenses homeowners face when selling with a Long Island real estate agent. By selling directly to CoMax Properties, you will not need to worry about commissions, broker fees, paying other professionals, repairs, or advertising! At CoMax Properties we are happy to discuss these and other reasons why it is better to sell your house directly. Please send us a message or give us a call today at (516) 704-7025.