If you are thinking about listing your house for sale on the MLS in Redondo Beach, it’s good to make sure that you are prepared for some hidden and often unexpected costs!
Keep reading below to find out what to watch out for and to learn about ways to keep your hard-earned money!
Selling a house in Redondo Beach can get expensive quickly when you hire a real estate agent to list your house on the MLS. A smart home seller will consider all the sales costs before spending any money to really evaluate if the expense is really worth it. In some cases, selling your Redondo Beach house to a direct buyer can be the better choice. Not always, but sometimes it does make more sense. Give The Shenbaum Group, Inc. a call today to find out if listing or a direct sale will be the best choice for your situation.
If you do choose to list your Redondo Beach house, pay close attention to the costs outlined here:
Most sellers know closing costs exist, but they aren’t always sure how much they actually cost. In fact, the numbers typically vary from house to house. Closing costs will include things like origination charges, transfer costs, inspection fees and title and escrow fees. Most homeowners will pay anywhere from 2% to 3% of the final sale price of their home in closing costs. If your house is $500,000, you will need to pay anywhere between $10,000 and $15,000.
Agent commissions typically cost around 6% of the final sale price of the house. However, many real estate agents will have administrative expenses that they will add on top of that, such as upgraded photographs, special marketing material, online and print advertising, as well as drone video or photos. This also includes administrative items such as copies, printed materials, food and drink for an open house, listing services, etc. Some real estate agents will take care of it all, while others will charge you for everything like this. If you decide to list your house for sale, then be sure to review the listing agreement carefully before you sign. You could find yourself spending far more than you initially expected.
Staging & Curb Appeal
Getting a house ready for photos, showings and open houses can get expensive very quickly. All of your personal items should be put away in order to achieve the greatest effect. You need to pay close attention to staging your house well. In this case, it doesn’t mean stashing everything in the closet. Why? People are going to look there and you don’t want a closet full of stuff falling out. Some homeowners will find themselves paying for a storage space while their house is listed, keeping only their necessities at the house, especially those that show well. This makes for easy clean-up, as well as an easier move when the time comes.
You’ll need to make sure that your yard is in great shape and looks amazing to anyone passing by. It can take some work and some out of pocket cash to get things where they need to be. Not to mention the continuous upkeep while your house is listed on the MLS. Curb appeal is a huge influencer for people getting ready to buy. Don’t miss out on a potential buyer because your yard doesn’t look appealing. For instance, when potential buyers are looking at new listings on sites like Redfin, a front exterior photo is the first one that pops up! Don’t let buyers pass on your property because your house doesn’t look new, fresh and appealing!
Paint is one of the first things many homeowners will do before listing their house. And that is a great idea! It is a relatively simple upgrade that can have a big impact on the appearance of your house. Most people usually hire a professional to handle it as painting the whole house can be quite an undertaking. Others will choose only to do certain rooms in order to stay within their budget and be mindful of costs. Repainting your entire house can ultimately cost you thousands of dollars. And it’s the first repair you will be told you should make. It sounds easy enough, but after you consider the costs of repainting the entire home, you could be looking at a $5,000 to $10,000 depending on the number of rooms and size of your home.
Sure, you can do a pretty good job cleaning your house. But do you really want to scrub the walls, baseboards, and the oven? Most homeowners hire professional cleaners, who will specialize in “move-out” cleanings. They will take care of everything from top to bottom so you can spend your time elsewhere. If you are not replacing the carpets, it is a good idea to pay to have them professionally cleaned. Although, new carpet is a smart choice when wanting to make your house look fresh and new for potential buyers.
Some lenders will charge you if you are paying the mortgage off early. Check with your lender for pre-payment penalties and other costs you will incur when paying off the mortgage. You will likely have to pay recording fees, which will usually cost about $100 at the most.
Title & Escrow Fees
When listing your house in Redondo Beach, you will also need to consider the cost of title insurance as well as all the fees to the escrow company. These costs will run you a few thousand dollars, for sure. Selling a house isn’t cheap!