Working with a real estate agent can be a great way to put your property in front of a large audience of potential buyers. This also means that there will be additional expenses that may not be fully apparent at the time of listing your property. Here are five hidden costs of working with a Murfreesboro real estate agent.
The first hidden cost of working with a Murfreesboro real estate agent is photography fees. In the first meeting with the real estate agent, they may mention adding high-quality photos to your listing. They usually have a preferred or recommended photographer they work with and they trust, but having professional pictures taken of your property may cost more than you were expecting.
It is also preferred to have a wide-angle shot of all of the rooms, and a 360-degree photo if possible, that way it can be uploaded into a program to take a virtual tour of each room. They may also suggest having a virtual tour of your property done, especially when it is not ideal to be around more people than necessary these days. The more features of the photography package will help sell your house faster, but a few agents will ask you to pay for this service. Most agents will not so be on your guard!
The second hidden cost of working with a Smyrna real estate agent is staging fees. If you do not leave furnishings in your property when it is being marketed for sale, the real estate agent may suggest property staging. This helps the potential buyer see how rooms can be arranged and different uses to consider. It is a proven fact that staged houses sell faster and for more money.
If the realtor is not experienced enough and most are not to stage properties themselves, they will often suggest a professional interior design service to come to stage the house for you. Some staging consultants will only work with the furniture and decor you have. Their fee is only a few hundred dollars.
If the house is empty, then you need a stager who can bring in furniture and appointments to stage the home. Staging using the consultant’s furniture is expensive and 2,000 square foot houses range about $2,500-$3,000 to stage.
Curb Appeal and Improvements
The third hidden cost of working with a Columbia real estate agent is curb appeal. Real estate agents will often suggest improving the curb appeal of the property. Your property will most likely sell faster because of the enhanced beauty of a fresh coat of paint and some new pops of color in the flower beds complete with new mulch, but all of this adds up. Painting a home, installing new plants, laying mulch, pressure washing the driveway and other visual improvements will cost hundreds of dollars. The appearance of the front door and curb appeal will entice buyers to visit or push them away.
Property Inspections or Surveys
The fourth hidden cost of working with a Franklin real estate agent is a property inspection or survey. Many real estate agents like to entice buyers with this extra perk in the listing. Having a recent property inspection is a great selling tool, especially if the property has no major issues. This will give buyers the confidence to submit decent offers, but it will cost you. The average home inspection is about $350.00.
What happens if the inspector finds things needing repair or replacement? Now you have to pay for those repairs and then disclose all previous repairs on the property disclosure document when selling to a buyer.
If you elect not to do an inspection prior to listing the house with a realtor, the buyer’s inspector will find everything that needs repairs or further attention. Often the inspection period is the big deal-killer now. The things found in the inspection sometimes scare the buyers away or they just get cold feet and use the inspection as their way out. Either way, you will have to make the repairs. If you have a radon gas issue, that will cost you $1,500 to $2,500. A new roof depending on the size and slope will $8,000 to $10,000 or more while a new HVAC is $6,000-$8,000.
If you know your house needs many repairs, please check out our article “How to Sell a Home That Needs Repairs“. This article will explain the full process of evaluating repairs, who to call on for professional help, and approximate cost on many common problems.
Real Estate Commission
The fifth hidden cost of working with a Nolensville real estate agent is their commission. This, of course, is negotiated at the time of signing the listing agreement, but it’s easy to forget about that while your property is being marketed. You may not truly feel the impact of the brokerage fees until it’s time to sign the closing papers. Here you see all of your fees taken out of your sale proceeds, this will include the brokerage commission and transaction fees.
While we are on the subject of fees and commissions, we haven’t talked about closing costs. Every home sale has closing costs to pay. These costs can range from $1,000 to $2,000 and if the buyer can’t afford their own closing cost, they will ask you to pay it and that starts at $5,000 and goes to $8,000 or more. These costs include loan origination fees, buy down points, title insurance, state and city tax stamps plus so many other smaller expenses.
You may benefit by reading one of our articles on “7 Costs to Expect With a Traditional House Sale in Nashville.“
If you know the traditional real estate agent route is something you know you don’t want or on the fence, consider talking with a local professional real estate buyer or investor. These direct buyers or investors buy houses fast and with cash. What this means for you is you can move right out, make no repairs, do no cleaning, close in as little a 7 days, get paid in cash, and not pay any closing fees!
Disclaimer: David Wright is a licensed real estate agent in Tennessee and this article is not a solicitation to list your house.