Understanding the Costs of Selling a House in Michigan
Mar 03, 2021 | Hometown Development
It’s surprising to many, but selling a Michigan house or property actually does cost some money. From Realtor fees to staging fees to paying your mortgage while waiting for closing, not to mention any repair costs, there’s a lot of money you can end up putting into the sale of your house. Let’s take a look at the costs of selling a house you can expect — as well as some ways to save money during this process.
The Costs of Selling a House
Selling a Michigan house can get expensive fast. Some costs of selling a house you can expect — like making repairs or working with a Realtor — but other expenses, like closing costs and attorney fees, can also reduce your profits from a home sale. Some of the costs of selling a house include:
Home Repairs and Other Costs of Selling a House
If your home or property needs a bit of work before it’s ready to list on the market, one of the biggest costs of selling a house is repairs. Repairs could include serious expenses like replacing the roof or fixing a cracked foundation, or be a collection of smaller, cosmetic costs like painting the interior a neutral color or revitalizing your home’s landscaping. Also, if your house is showing its age, you might need to update rooms and appliances to make it more appealing to potential buyers.
Remember that you’ll need to continue paying regular maintenance costs and your mortgage during this process — all the way up until the home changes hands. The more work and time your home needs to be ready to sell, the more money you’ll end up paying.
Realtor and Attorney Fees
In order to help sell your home, you may consider working with a Realtor — but you’ll need to be aware that they come with their own costs as well. A Realtor can help you determine what needs to be fixed or changed before selling your house, and help get the word out about your home sale to reach more potential buyers. However, they may require you to pay for professional staging or photography to list the home and, on top of that, they will earn a percentage of the sale (usually 6 percent) once a buyer is found.
Closing Costs of Selling Your Michigan House
Closing costs are extra fees and expenses that the seller is responsible for paying throughout the closing process. Typical closing costs can amount to 6-10% of the sale price of the home and include:
- Title insurance
- Property transfer taxes
- Any outstanding liens
- Recording fees
- Holding costs
- Repairs required after the home inspection
Timeline of Selling a House
You won’t just be spending money to sell a house or property, another important cost to consider is time. Preparing your home for sale, listing it on the real estate market, finding the right buyer, and going through the closing process can take time — especially if your home needs repairs, is outdated, or the buyer needs time to secure financing.
Selling a house can take several months. If you need to pay to maintain the house and property during this time, your costs can multiply until the sale finally goes through. If you’d prefer to sell your house fast, you may need to look at an alternative way that helps you avoid the costs of selling a house.
Avoiding the Costs of Selling Your Michigan House
If you want to spend as little as possible and minimize the costs of selling a house, you can sell your home without making costly repairs in an as-is sale, sell your house yourself to avoid Realtors’ fees, or sell to a real estate investor in a fast, cash sale.
Sell Your House As-Is for Cash
One way to save on the costs of selling a house is to sell your home as-is. That means you don’t need to worry about making repairs, cosmetic changes, or updates to your home. You list it for sale in its current condition and get to save the money you would have spent on expensive fixes. In order to sell your home as-is you may need to price it competitively or be patient for the right buyer to find you.
Alternatively, you could prioritize the repairs your home needs, and leave the extra fixes for the next homeowner to worry about.
Sell Your House Yourself
If you sell your house yourself, you can avoid paying Realtor fees and save money in your home sale. A benefit of selling your home by owner is that you can decide how much work you want to do to prepare it for sale. If you decide to sell this way, understand that selling your home may take longer and you’ll have to do the work yourself when it comes to listing your home, facilitating showings, and negotiating with potential buyers.
Sell Your Michigan House to a Real Estate Investor
Finally, a great way to sell your house without spending extra money on repairs, Realtors, or closing costs, is to sell your home to a real estate investor. Real estate investors prefer to purchase homes:
- In as-is condition — meaning no expensive repairs necessary
- Without a Realtor — no commissions to pay
- On a quick timeline — often in as few as 5 days
If you want to save on the costs of selling a house and sell your house fast for cash, selling to a real estate investor will be the ideal solution for you.
Selling your home traditionally can end up costing quite a bit. If you’re ready to move on, without the hassle of a realtor and closing costs, talk to Hometown Development. We prefer to close in as few as five days, and we handle all of the closing costs.