What Does it Cost to List Your House and What Is the Process?
Do you want to sell your house but have no idea what it costs or where to start? Listing your home may seem overwhelming but is actually pretty straightforward once you know the process. I’m going to explain everything you need to know, so you can stop worrying about selling and start focusing on all the offers you are going to get. Follow closely to the end so you don’t miss the 6 important steps.
First things first let’s get the cost of selling out of the way. Now, obviously depending on where you are located there could be additional costs but I am going to focus on the main ones. In Maryland the seller is responsible for paying both the buyers agent and the listing agent, which is referred to as commission. A good figure to use for this is 5% because it is the most common, although, that number could be higher or lower depending on what you negotiate with your realtor. If using 5% as your figure, most likely, it is split 2.5% for the buyers agent and 2.5% for the listing agent. Another fee that is usually incurred for the realtor is called an administrative fee, which is admin fee for short. This is usually around $395-$495 and charged as a flat fee from the agents brokerage office. The reason for this fee is the shear amount of paperwork and manpower used in their office to process and store the documents from the transaction, for a minimum of 5 years.
After that you will be required to pay taxes to both the county the property is located in as well as the state. Both the county and state taxes are determined by using a percentage rate of the purchase price of the home.
Next, if you still owe money on your home, to your lender, the remaining balance, called a payoff will also be paid out of the proceeds of the sale. Any fees or interest will also be included in the payoff and will be adjusted to the day you sell your home. Meaning, this balance will be paid up to the day of sale and no charges will be incurred after.
Additionally, you will have adjustments made at closing to ensure all the fees you pay to own your home are paid up to the day of closing. This can include but not limited to property taxes, HOA or condo fees, front foot fees, ground rent and water bills. Please remember anything you have already paid through a date that’s after your closing day will be reimbursed to you at settlement as well.
The title company will also charge you some fees that vary depending on the title company that is being used. In Maryland the buyers get to choose who the title company is. Usually, these fees have to do with paying off your mortgage immediately after closing. Normally, they are in the $200-$250 range although I have seen both higher and lower.
Finally, the remaining charges you might incur would be related to any miscellaneous fees charged by your HOA or condo association, if you have one. Sometimes these are transfer fees or document fees and I have seen these range from $50-$200.
It is important to remember these fees are only paid if your property actually closes unless you have negotiated any retainer fees with your realtor.
Now that we have went over the fees that are charged to sell your house, let’s go over the actual process with 6 steps:
Once you have decided you are going to list your house you will have some decisions to make. First, figure out what your timeframe to sell is. Do you have to sell immediately or do you have some time? Next, you need to decide where are you moving to? Do you need to buy another house? Are you moving out of state? Once you figure that out you will need to determine your moving logistics. Are you moving out before the house is listed? Do you need a rent back after you sell? All of these things are super important for your realtor to know so they can plan for marketing and listing your property.
Second, you need to find or call a real estate agent that you want to work with and set up an appointment for them to come to your home. With this, you are going to discuss all the decisions you have determined in step 1, with them. Using this information, give your agent a tour so they can figure out what work they will suggest you complete, for the best return. Remember, you need to inform them of any issues or repairs you know that are needed with the house. After that you can talk about the best time to list your property. Finally, they can talk you through the moving strategy and how that would work for you.
Third, take the suggestions your realtor has made for what repairs you need to make on your home and complete them. This should ALWAYS include decluttering and staging. Now when I say staging, I don’t mean bringing furniture in, I mean taking what you already have and making it work in the room as best as it can. Make sure you organize your closets and kitchen cabinets, because trust me buyers look in there and are judging you! Finally, deep clean your entire house top to bottom. I’m talking fans, vents, baseboards, windows, blinds, do it all! When people think your house isn’t clean, they think you don’t take care of it. And trust me I get it, I have two kids, my house is never clean, but in this case you just need to do it.
Fourth, your realtor may already suggest this but if not make sure your curb appeal is on point. Have fresh mulch in all your flower beds. Paint your front door and shutters if they are faded. If your exterior trim is chipped, make sure its painted also. Plant some flowers or green shrubs if needed and put out hanging baskets or flower pots. Buyers are judging your home when they walk up so don’t skip this step.
Fifth, call your real estate agent back to your home for your final pre listing meeting. During this meeting show them everything you have done to your house and see if they have any requests for final touch ups. Then you will discuss a listing price and a specific listing date. You can also ask them what their marketing strategy is going to be and how showings will work. Finally, you will figure out a date for professional photos and video, if that is going to be part of the marketing strategy. Most likely you will also sign a listing agreement or your agent will be sending you one after the meeting.
And finally, sixth, is just touch up items. Complete anything else your agent has asked you to do and make sure the house is clean before listing photos. Remember, before photos, take down any everyday clutter items like blenders or air fryers or tooth brushes. This will give your pictures a nice clean look.
After that your house will be ready to go and you can sit back and wait for offers! But remember keep it clean!
SO TO RECAP:
1. Figure out listing details, like timeframe and moving plans.
2. Have your first meeting with your realtor
3. Get your house ready to list
4. Complete Curb Appeal
5. Have your final pre listing meeting with your agent
6. Complete touch up items and listing photos
Now that you know what it costs to list your home and the process, you should watch my next video, “How to Prepare Your Home for Showings,”
When a buyer comes to see your house its your only chance to convince them to buy it, so how you present it to them can completely make or break the sale. I will show you exactly how to make your house look perfect and even how to do it quickly when you get a dreaded last minute showing.