Understanding The Costs of Selling Real Estate in Omaha, Nebraska
Do you know about the costs of selling your house in the Omaha, Nebraska area? Learn what to expect before working with a real estate agent and putting your house on the MLS, what’s important when selling your house on your own on your own, or the advantages of working with a direct buyer. You might be surprised at how much it costs to sell your house. Depending on how you choose to sell your house it could literally cost you thousands of dollars, selling can quickly eat away at your profits!
Selling your house fast in Omaha, Nebraska can be extremely expensive. There are a number of things to pay for before and after the sale. For instance, if you decide to list your house with a real estate agent you will end up paying thousands of dollars in commission and closing costs. You will have to pay a six or seven percent real estate commission, closing costs, costs to get your house ready to sell and holding costs while the property sits on the market possibly for months. The holding costs consist of taxes, insurance, utilities and day to day costs like maintenance to name a few. These costs are particularly high, a direct sale will be a far better choice. A direct sale to a home buyer like Harter Investments will be much quicker without the commission, closing costs, no need to spend additional dollars with repairs to get your house ready to sell and no holding costs because we can close in 7 to 10 days with cash. In our latest post, we will dive into the costs of selling your Omaha, Nebraska house fast for cash using the three most popular methods. Compare all of your options before selling your house in Omaha or Lincoln, Nebraska and Council Bluffs, Iowa!
Costs Of Listing
This will vary based on the real estate agent you choose to hire. You will typically be paying about 6 to 7 percent of the final sale price to the agents involved in the deal. With some agents, you will also face costs for marketing and administrative services. Be sure you know what’s included before signing a listing agreement. If you sell your house for $250,000 you will be paying the real estate agent $17,500 just in commission. As mentioned you may still be thousands in marketing and administrative costs not to mention the following costs. Beware, always read the real estate agent’s contract thoroughly and know exactly what it will cost you when your house sells for using the real estate agent that you choose.
Whether or not your agent includes marketing services in their rate, there are a few marketing costs you should consider adding. For example, many real estate agents or sellers will hire a professional photographer to take pictures of their home. Some will utilize videographers or even a drone service company to get aerial shots of the property. In today’s real estate world, the marketing of residential property is extremely competitive. It is highly recommended to market your house as aggressively as you can. The faster you sell your house the sooner you will not have to pay the holding costs that are occurring on a daily basis while your house remains on the market. Again, going back to doing everything you can to reduce the number of days on the market when listing with a real estate agent you may want to upgrade your online listing to “premium” so they show up at the top when people are browsing through the multiple listing service of houses in your area.
Most houses will require at least a few repairs before going on the multiple listing service. Remember you only get one chance at a first impression with a possible buyer. Spending money on finishing landscaping you where going to get to for years, repainting a garage door that has one to many volleyballs hit against it. You get the idea, first impressions are everything. Once a buyer has been found, they will likely request a house inspection before agreeing on a purchase price. Depending on what the home inspection report comes back with from the home inspection will determine how the negotiations will move forward. You will now begin the negotiations as to who makes the repairs found during the inspection, the final agreed upon purchase price. You can negotiate to either make some of these repairs or discount the sale price of the home.
Cleaning And Staging Costs
Most sellers will have their homes professionally cleaned before putting it on the market. Many will remove personal belongings and clutter, storing all unnecessary things elsewhere. Some will even hire a professional stager to come in to make the house look as if it came out of the pages of a magazine. Again, this is another chance to make a good first impression for potential buyers. Staging a house and have it professional cleaned can be the difference between having multiple buyers and multiple offers that can help drive the price up above the asking price. I’m sure you’re getting the idea that putting the extra effort in on the front side will pay big dividends once your house is put on the market.
In a typical home sale, the seller will need to pay about 5% of the final sale price in closing costs. This can be negotiated up or down between the buyer and seller at the time you negotiate the contract to purchase your house. but 5% is typically what you can expect to pay. Using our previous example when selling a $250,00 house, five percent would be $12,500. Add this to the real estate commission of $12,500 you are now at $25,000 out of pocket when your house is sold. As mentioned above you still need to add in the costs of making the appropriate repairs to bring the house up to standard to put on the multiple listing service and don’t forget the holding costs that continue to add up daily while the house is being marketed.
Continued Ownership Costs
Listing your house with an Omaha, Nebraska real estate agent can take a few months. During this time, you will still be responsible for the daily holding costs of the property until the property sells. The holding costs include property taxes, utility bills, homeowners insurance, daily and monthly maintenance, landscaping, and possibly a mortgage with possible mortgage insurance. When you add up all the expenses of owning the house each month, it can amount to thousands of dollars and have to add to the overall cost of selling your home fast in Lincoln, Nebraska.
Costs of An FSBO (For Sale By Owner) Listing
While trying to sell your house on your own will help you avoid commissions and agent costs, there are other costs to consider. In addition to many of the costs above, here are some additional costs to expect when selling your house in the Omaha, Nebraska area.
Heightened Marketing Costs
When listing your house with a real estate agent in Omaha, Nebraska, the addition of extra marketing is at your discretion. However, when you are selling on your own, 100% of the marketing is up to you. You will have to pay for all online listings, printed materials, signage, and open house costs. Remember that you want to make the right marketing decisions that will get your house sold fast in Council Bluffs, Iowa. Cutting corners here by trying to save money may cost you on the back end by having your house sit on the market for an extended amount of time and possibly not bringing in multiple offers or offers that are not what you expected. You will likely want a professional photographer, videographer etc. to come in to help you present the house in the best light. You can also opt to add things such as virtual tours or videos of your property.
House Preparation Costs
Getting a house ready for a sale can take a lot of work. As with a listing, there are a number of things that will need to be done before the house is advertised for sale. Ideally, you will need to have your house professionally and thoroughly cleaned from top to bottom. You should make any needed repairs, and be prepared to make more after the inspection process. Many sellers will also face storage fees for their unnecessary items, as well as the cost of a professional stager or decorator.
The Price Of Your Time
When you choose to sell the property on your own via an FSBO (for sale by owner) listing, you will find yourself spending an excessive amount of time dealing with the sale. You will need to be available for showings, create listings and marketing materials, respond to questions, process paperwork, handle negotiations and more. Remember, the most valuable resource we have is our time. Think about how much your time is worth to you?
Costs of Selling Directly
When you opt to sell your Omaha, Nebraska house to a buyer such as Harter Investments, you will be able to avoid all of the selling costs mentioned above. There are no fees, repair costs, or even closing costs. We buy directly, as-is, potentially saving you thousands of dollars along the way. We can close on your terms for cash. Contact us if you would like to learn more. We are a local, family based company that will work with you to make sure you are making correct decision.