How Much Does It Cost to Sell My House?
If you're considering selling your home, you're probably wondering how much it'll cost. While the total expenses will vary depending on factors like the offer you accept, whether you cover some of the buyer’s closing costs, and any repairs you decide to make, here’s a general guide to help you prepare for what’s ahead. (see graph below): Before we dive into the details, here’s some good news: many homeowners today have built up significant equity in their homes. This equity can often offset some or even all of the selling costs, and in many cases, there’s enough left over to help fund the purchase of your next home. Let’s explore some of the common costs associated with selling your house and where you might be able to save along the way. Closing Costs and Commission At closing, you’ll be responsible for certain fees that cover the sale’s completion. These include your own closing costs, and you might also offer to cover some of the buyer’s expenses as an incentive. As U.S. News Real Estate explains: “Closing costs are fees that are paid to finalize the transaction and transfer ownership of the home to the buyer. Sellers can expect to pay 2% to 4% of the sale price of the home in fees and taxes on top of the agent commission.” For example, based on the national median home sale price, closing costs in 2023 range from $7,740 to $15,480. Keep in mind that these figures can vary depending on state taxes and the commission agreed upon with your real estate agent. Additionally, if you’ve been making escrow payments for taxes and insurance, you may receive a credit at closing, which can help offset some of these costs. Pre-Listing Inspection and Repairs A pre-listing inspection is an optional step that can give you a heads-up on issues that might surface during the buyer’s inspection. This allows you to make any necessary repairs ahead of time, which could prevent buyers from asking for concessions later. However, if you prefer to skip this, your agent can provide advice on what minor fixes or cosmetic upgrades would yield the most return on investment, helping your house make a strong first impression. Home Staging In today’s competitive market, staging your home can make a big difference. Whether it involves bringing in rental furniture for a vacant home or adding décor to enhance the space, staging helps buyers envision themselves living in your home. Bankrate estimates the cost of home staging typically ranges from $782 to $2,817, though the price can vary. If you choose not to hire a stager, your real estate agent can offer tips on decluttering and rearranging furniture to make your home feel more spacious and inviting. The Importance of Working with a Real Estate Agent If you're looking to save money, it’s important to be strategic about where you cut costs. While you might opt out of optional expenses like staging or a pre-listing inspection, skimping on hiring a real estate agent can backfire. A great agent is invaluable—they offer tailored advice on pricing, marketing, and negotiating, helping you get the best return on your investment. Plus, their expertise in showcasing your home’s best features can actually help increase the final sale price. Bottom Line Curious about how much it’ll cost to sell your house? Let’s talk! We can walk through the specifics based on your home and help you understand what to expect so you can sell confidently.
Two Reasons Why the Housing Market Isn’t Headed for a Crash
Lately, there's been buzz about the economy and the possibility of a recession, leading some to worry about a potential housing market crash. If you're feeling concerned, take a deep breath—there’s no reason to panic. The current housing market is structured very differently than it was in 2008. Real estate expert Michele Lerner explains: “A housing market crash typically occurs when home values drop due to a combination of oversupply and weak demand.” With that in mind, here are two key reasons why a housing market crash isn’t on the horizon. 1. Housing Demand Continues to Outpace Supply Back in 2008, one of the major contributors to the housing crash was an overabundance of homes. Today, however, the situation has reversed. In a balanced market, the supply of homes typically lasts about six months. If the supply surpasses that, it means there are more homes available than buyers, leading to a decrease in prices. Conversely, if supply is lower, demand exceeds availability, which helps maintain or raise home prices. (See graph below): Currently, there is only about a 4.2-month supply of homes, according to the National Association of Realtors (NAR). Compare that to the 13-month supply before the 2008 crash, and it's clear the dynamics are very different now. With more buyers than homes available, prices are more likely to hold steady or increase, making a market crash unlikely. It’s important to note that inventory varies across different regions. While some areas may experience more balance or slight oversupply, the majority of markets are facing housing shortages. Lawrence Yun, Chief Economist at NAR, explains: “We simply don’t have enough inventory. Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.” 2. Low Unemployment Supports Home Stability Unemployment plays a crucial role in the housing market. When unemployment is high, people struggle to pay their mortgages, which can lead to foreclosures and forced sales. This was a significant factor during the 2008 crisis. (See graph below): Today’s employment situation is much more stable. The current unemployment rate is around 4.1%, significantly lower than the 8.3% seen during the 2008 financial crisis. As more people remain employed and financially stable, they are better able to meet their mortgage obligations, reducing the likelihood of foreclosures. Additionally, with a large portion of the population employed, many individuals are in a strong position to purchase homes, which keeps demand—and prices—strong. The Housing Market Is More Resilient Now Than in 2008 While economic uncertainty and talks of recession can be worrisome, it’s essential to recognize that today’s housing market is much healthier than it was in 2008. As Rick Sharga, Founder and CEO at CJ Patrick Company, says: “Today’s housing market dynamics are entirely different from the conditions that led to the housing crisis.” The imbalance between supply and demand, coupled with low unemployment rates, will continue to support the housing market and prevent a crash from occurring. Bottom Line Although the housing market is in a stronger position than it was in 2008, it’s always wise to stay informed about local market conditions. If you have any questions about what’s happening in our area or want to explore the current trends, don’t hesitate to reach out!
The Ideal Moment for Homebuyers Is Here: Don’t Miss Out!
After spending months on the sidelines due to high mortgage rates and affordability challenges, many homebuyers now have a window of opportunity to act. With interest rates slowly declining, today's housing market is a prime time for buyers—and it won’t last forever. So, if you’ve been holding off on purchasing a home, now might be the time to reconsider. Here’s why waiting could mean missing out. Consider This: What Will Other Buyers Do? As you think about whether to buy now or wait, ask yourself: what will everyone else do if rates continue to fall? The truth is, if mortgage rates keep dropping, as many experts predict, more buyers will return to the market. In fact, a Bankrate survey shows that more than half of homeowners would consider buying if rates dip below 6%. With rates already hovering around the low 6% range, we’re getting close. When they fall into the 5s, expect buyer competition to increase. (see graph below): This rise in demand could lead to higher home prices, potentially wiping out some of the savings you’d gain from a lower interest rate. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), points out: “The downside of increased demand is that it pushes home prices up as multiple buyers compete for a limited supply of homes. In markets with housing shortages, this price increase can offset the benefits of lower mortgage rates.” In other words, waiting to buy might seem like a good idea, but it could cost you more if prices rise faster than rates drop. Why Now Is a Great Time to Buy You’re in a unique position right now. The market is in a sweet spot for buyers, and here’s why: many buyers are still waiting on the sidelines, which means there’s less competition for you. Affordability has also improved. With mortgage rates easing, owning a home has become more accessible. As Mike Simonsen, Founder of Altos Research, shares: “Mortgage payments on a typical home are 7% lower than last year and 13% lower than the peak in May 2024.” Plus, while inventory is still tight, there are more homes on the market than in recent years. According to Ralph McLaughlin, Senior Economist at Realtor.com: “The number of homes for sale has increased by 35.8% compared to last year, marking ten consecutive months of growth and reaching the highest levels since May 2020.” This means more options for you as a buyer, with less competition and improved affordability. The Cost of Waiting If you’re holding out for the "perfect" time to buy, remember that timing the market is nearly impossible. The longer you wait, the higher the risk that market conditions could shift against you. Greg McBride, Chief Financial Analyst at Bankrate, warns: “It’s one of those situations where you should be careful what you wish for. A further drop in mortgage rates could spark a surge in demand, making it harder to buy a home.” Final Thoughts Don’t wait until you're facing more competition and rising prices—take advantage of today’s buyer-friendly market. Let’s connect to make sure you’re ready to seize the opportunity.
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