In our latest post, we discuss the things many homeowners don’t know about selling a house in the Nashville area. Find out what to expect before you list with a Nashville real estate agent! The process may not be what you expect!
Do you know the 7 most common things most homeowners don’t know about selling their houses in Nashville? Do you want to sell your house in Nashville? If you are thinking about listing, it’s important that you know what you are getting into. For many home sellers, listing their property is a rude awakening. The house may not be worth what you think it is. There may not be a large pool of buyers, or you may have to deal with a long list of expenses upfront.
You May Face More Than One Round Of Repairs
When listing a house with a real estate agent in Nashville, there will typically be a few repairs made before putting the house on the market. These repairs can add up quickly, making the owner even more ready to get the house sold. However, when a potential buyer comes along, they will have the house inspected and appraised. Their offer will likely include contingencies, allowing them to back out of the sale if it doesn’t appraise high enough or if there are larger repairs discovered after the inspection has commenced. If repairs are required, the potential buyer will turn to you to fix them or to offer a reduction in price. If the repairs are extensive, then the seller may use proceeds from the sale and place it into an escrow account during the closing to pay a licensed contractor afterward upon completion of the work. So when all is said and done, you may be facing repair bills before listing the house and then again after you have found a buyer and the inspection has been completed.
Your Marketing Costs May Not Be Included
When you work with a real estate agent in Nashville, you’ll need to know exactly what you are getting. Some agents list and wait, while others are full-service, pulling out all of the stops. If you decide to list your house in Nashville, look for a premium agent or be prepared to pay for some of the marketing yourself. Professional photography, staging, signage, premium ads, and open houses aren’t always included. Many sellers will end up paying for these services themselves in order to sell the house in a reasonable amount of time. Staging, in particular, is expensive with rates ranging from $2,000 to $3,000 for many homes.
Selling Timeframes Can Vary
Just because your neighbor’s house sold in a week, doesn’t mean yours will too. When you list your house on the Middle Tennessee MLS, there is no way of knowing when the house will close. It could be days, weeks, or months. For some sellers, they don’t end up finding a buyer at all and they are forced to take their home off the market. Listing a house in Nashville can be very frustrating for homeowners who want to sell their houses quickly. It can be difficult for families who are forced to live in limbo while they wait for a buyer. With a direct sale to Southern Homes Investments, you’ll know exactly when the closing will take place.
What Are Your Carrying Costs
Another consideration of the time it takes to sell your house is the holding or carrying costs. Have you figured how much you spend every month in mortgage payments, utilities, possibly HOA fees, maintenance or lawn care? Whether your carrying cost is $800 or $2000 a month, do calculate on spending this monthly amount for a minimum of 2 months to 6 months or even 1 year.
Sales Can Fall Through
Imagine waiting months to find the right buyer, only to have the sale fall through at the last minute. This happens more than you might think due to low appraisals and required repairs. Buyers will typically have contingencies in their contracts that allow them to back out of the sale if the appraisal comes back low or if they find major problems after the inspection. You may still be able to sell if you lower your price, but after doing so much work to list it, many sellers aren’t willing to drop the price as much as the buyer would like them too.
Another problem when a contract falls through is the stigma the house will have when it returns to the market. Oh, yeah you can tell them the contract fell through because…but those buyers who were originally looking at it have moved on with another house or mentally wrote it off. Trying to find new buyers may cause you flustration as people do look a the DOM – Days on Market, and start questioning what is wrong with this house. Why has it been on the market for so long? The buyers start thinking they can get a great deal now and will begin low-balling you on price.
Showings Are Often Last Minute
If someone drives by or reads about your house and wants to see it right away, it’s in your best interest to let them. When listing your house with a Nashville real estate agent, you’ll need to be prepared for showings that can happen at the drop of a dime. You might get a call saying someone wants to see the house in 30 minutes. And guess what, you are right in the middle of dinner, oh yes it happens a lot! You’ll have to make sure it is show-ready and make yourself scarce while the home is being shown. If this is happening a lot, the process can become stressful. However, the last thing you want to do when trying to sell your house in Nashville is to turn away potential buyers!
Buyers Want Their Closing Costs Paid By You
It seems ironic when a home buyer wants to purchase a home (they have been saving up for this epic moment) they want the seller to pay their closing costs! Believe it or not, it happens every day. It is even more common with first-time homebuyers but I have also seen it with buyers in the $400,000 to $800,000 ranges too. Closing costs include mortgage fees, closing costs, and any other expenses they can tack on to the closing costs. Mortgages are expensive and come with many fees and costs. Origination fees, buy-down points, and credit checks are just a few things lenders creatively tack onto mortgages. Closing fees are just about as exciting with courier fees, wire transfers, city and county tax stamps, insurance and property tax pre-payments for escrows, prorated HOA fees, property taxes, and the list goes on. In all these closing costs the buyers like to sock to the seller are 2% to 3.5% of the purchase price and more. This is a lot and on a $200,000 home that is $4,000 to $7,000. If they are requesting it, chances are they don’t have the money to pay it themselves, or they want to reserve some cash for moving expenses, build a fence, or buy some furniture. The problem is, you will probably never know!!!
Selling Your House Directly…
Another one of the 7 things homeowners don’t know about selling their home is you may think that you need to hire an agent, list the house, and wait for a buyer, however, this is not the case. There are many ways to sell a Nashville house. A direct sale is the best way for many Nashville homeowners to sell their homes. When you consider all of the listing costs, holding costs, and commissions, working with the right property buyer can be the most beneficial choice. You’ll be able to avoid the costs, the showings, the waiting, and be informed about the things homeowners don’t know about selling.
We at Southern Homes Investments are a local direct buyer of houses. We buy homes Nashville in any condition and we can close in as little as 7 days. Because we can close quickly, we buy with cash and not loans, so there’s no waiting for the loan process and appraisals. Secondly, we pay all closing costs. When we buy your house and we meet at the title company to close, you will not be paying any closing costs, no fees, nor any commissions. It’s that simple. We pay your closing costs and we give you cash at the end of the closing. You are free to start afresh and remove all the worry and stress.
Learn more about the many things homeowners don’t know about selling their Nashville homes! Contact us today! We would love to speak to you. Call us at 615-235-0612 or visit our website at www.SouthernHomesInvestments.com.
Disclaimer: David Wright is a licensed real estate agent in Tennessee and this article is not a solicitation to list your house.