If you plan on listing a Columbus , Ohio house, there are costs to contend with before you list, during the listing process, once an offer has been made and when you find yourself at the closing table. In our latest post, we will take a look at some of these listing costs so you can determine if a direct sale of your property to a real estate investor like Ittenbach Capital would be the better choice for your situation.
The price to sell a house in Columbus can fluctuate greatly. It all comes down to the house itself, the needed repairs, location, etc. Each agent will work differently. Some will charge you for additional services, while others are “all-inclusive.” Before you commit to an agreement, find out what listing your house in Columbus Ohio will really cost you! Remember this is your house, you are in control. Don’t be afraid to ask questions. Get to know the person or company you are considering, whether that is a real estate investor who is going to buy your house fast for cash or a real estate broker who will list your house on the open market.
Before you even talk to an agent or get started on a listing, you will need to take care of the following things. Some you can do yourself, while others you might have to pay for. You might not need all of these things, but they are all important to consider.
To create an environment that is appealing and welcoming, you will want to make sure the house is clean. You can do a good job yourself, but bringing in a professional to do a thorough cleaning of the house from top to bottom, can make the whole house look different. If you aren’t replacing the carpets or flooring, you will want to pay a professional to clean those as well. Don’t neglect the outside. If you have a second story, it may pay off to hire a professional to come and clean your windows!
While cleaning the home, it is a great time to pack away all of your unnecessary items and move off premises. Potential buyers don’t want to see personal possessions and clutter while touring your home. Great rule of thumb could be “If you have not touched in a year or more” remove it from the home. You want your home to have an organized appearance with plenty of room for storage. Packed closets and storage areas are an immediate turn off to potential buyers.
Repairs & Upgrades
You will want to repair or replace anything visibly broken, worn and/or dated. This may include light fixtures, faucets and hardware, drywall repair, painting walls in neutral colors, etc. Spending money on these items can make big impact on the buyer.
You can’t have a beautiful listing with an unkempt yard. What potential buyers see on the outside resonates how the inside of your home has been maintained. The front yard is the buyers first impression and you want to make a great first impression showcasing your home. Clean the landscape beds, trim the shrubs, trees and top off the beds with fresh dressing of mulch. Plant a pop of color with fresh seasonal flowers at front door. Clean light fixtures at entrance, remove cobwebs, and pressure wash the front walk.
While The House Is Listed
While the property is on the market, you will still find yourself paying to have it for sale. There are many expenses you will be paying during this time that you could avoid with a fast and direct sale upfront.
While the house sits on the market you will still need to pay the monthly utilities. Even if you have moved out of the house, you still need to keep the water and electricity on for people viewing the home. You will also have to continue paying the homeowner’s insurance and property taxes up until the day of closing. You will need to invest your time in the continued maintenance of the property’s interior and exterior. With many properties sitting on the market then having to go through escrow, it could be months before the house will close. During this time, you could be out thousands of dollars that you could have otherwise kept in your pocket.
Some agents will include great marketing, while others will not. To successfully list your house, you will want to ensure great photography of the interior and exterior of your home. Some listings are including impressive drone photographs to capture the exterior of their homes from above.
And Don’t Forget…you will need to keep the house clean as a whistle everyday until it is sold!
After An Offer Has Been Made
Once an offer has been made, and accepted, you will still be responsible for the homeowner’s insurance, utilities, and taxes up until the day of closing. Depending on the buyers lender this could add several weeks to your time frame. Most offers are contingent on an inspection and appraisal process (additional days). You can avoid the below costs with a direct offer from a real estate investor in as-is condition. Real estate investors prefer a house that needs a little TLC.
Once the inspection has been completed, you may need to negotiate repairs based on the severity with the buyer. If there are major issues with the house, the potential buyer will likely request it be fixed before going through with the sale. ( bank is not likely to fund a loan for a damaged property). If your buyer decides to rescind their offer, you will need to disclose the needed repair to all potential future buyers.
At The Closing Table
Once you have signed the final paperwork, it will also be time to pay your agent’s commission. Industry standard is typically 6% or lower on the final sale price of the home.
There are additional fees are lumped together to make up the “closing costs”. These include but are not limited to document filing fees, title search fees, credit check costs, transfer taxes, property taxes and more. On average, this will run you another 2% of your final sale price.
Once you add up all the costs, you can see that listing may not be right for every property. Many people find greater benefits by choosing a direct sale! Run the numbers for yourself, and make the decision that works best for you!
To learn more about Ittenbach Capital go to the Better Business Bureau and read what others have to say about their experience working with us!