When selling a home it is likely that one of your main concerns is how much money you are going to sell it for. You probably have already mentally decided upon what you are going to spend the money on. Maybe a new car, a new home, or something else.

Either way, it is understandable that you would want to know all the costs involved and how much it really costs to sell your property with a qualified Realtor. We are here to tell you the truth and explain what the actual costs are when you go to sell your home.

In this way, you can better calculate your sales earnings and estimate what kind of paycheck you are likely to be left with once everything else is paid for.

How Much Does The Realtor Earn From The Sale?

If you have worked with a real estate agent before then you already know that they do not earn a salary. They offer their services, the signs, the advertising, their contacts, legal aid, expertise, negotiation, time, and effort solely for the commission that they will earn from the sale of your home. This means that not only is it in their best interests to sell your home but they want to get the best for it as they earn a percentage rate of the sale.

Whilst this rate can vary depending on who you hire it is a market standard to request about 6% of the sale price. This means that if you sell a home for 200, 000 USD then they would earn 12, 000 dollars for the sale. Whilst that may seem a lot it is important to note that they are already spending their money to help sell your home and that 6% gets split between the seller and the agent's brokerage so they do not get the whole thing.

You could reason that you can save yourself 6% of the home cost by selling it yourself but research shows that often it takes much longer to sell and because your audience is so much smaller you will likely have to settle for a lower price costing you more in the long run.

What Other Costs Do You Have to Calculate?

It is key to remember that whilst the Realtor does a lot for their 6%, there are still other fees and costs that you as the homeowner still need to cover. Let's examine these briefly.

Home Inspection

This one is optional but always recommended to ensure you are not liable for future issues and to help get the best bids for your house. Hiring a professional for a home inspection will likely set you back by a few hundred dollars but can vary depending on the home location.

Whilst you have to pay for this, it will probably be for your financial benefit in the long run.

Repairs And Renovations

Whether from the recommendations of your Realtor or as a result of what you find out from your home inspection you may decide to repair or renovate your home so that you can charge a higher price for the property.

These costs can range from a small to exorbitant amount but if it is done with the recommendation of your Realtor then it is usual that you will earn this money back with a better ending sale price. Damaged or run-down-looking homes always go for less even if with a few touch-ups they could be worth thousands more.

Closing Costs

Closing costs can involve paperwork, taxes, escrow fees, and notary costs among others. Whilst this does depend on your area the best estimate for these costs is going to be about 2% of your total home worth. So if you are selling your home for 200,000 USD these closing costs are going to cut into your paycheck by about four thousand dollars.

With this in mind, and the knowledge that the other costs will probably even themselves out by giving you a better sale price you are going to be losing about 8% total from the earnings of your home.

May you get a good price, have a smooth transaction, and enjoy a stress-free experience.