Are you aware of all the costs of selling your house in NJ? Learn what to expect before listing your house with a realtor, selling on your own, or working with an investor. You will be surprised at how the closing costs can reduce your profits!
Selling your house can be really expensive. There are a number of different costs for both before and after the sale. If these costs are particularly high, a direct sale will be much better choice. In this post, we will explain the costs of selling your New Jersey house using the three most popular ways. Compare all of of them before selling your house in NJ!
Costs Of Listing Your House with a Realtor
Here in New Jersey, you will pay around 6% of the final sale price to the realtor involved in the sale. With some realtors, you will even face marketing and administrative services costs. Be sure you understand exactly what’s included or not before signing a listing agreement.
Even if your realtor includes marketing costs in their rate, there are some additional marketing costs (also known as “extras”) that you might want to consider, like a professional photo shoot of your property (remember, you never get a second chance to make a great first impression right?), videographers, a nice aerial shot with a drone. Your realtor will also suggest upgrading your listing to a “premium” listing so your house will always be on top of all the searches in your area.
Even if you don’t want to rehab your house before listing, there are some minor repairs that will need to be made for the house to pass the bank inspection. Also, the buyer may want to start negotiating who makes the repairs found during inspections. You have the option to negotiate to make these repairs or give a discount to the sale price of the home.
Cleaning And Staging Costs
Most sellers will have their homes professionally cleaned before putting it on the market. Many will remove personal belongings and clutter, storing all unnecessary things elsewhere. Some will even hire a professional stager to come in to make the house look as if it came out of the pages of a magazine.
In a typical home sale, the seller will need to pay about 2% of the final sale price in closing costs. This can be negotiated up or down between the buyer and seller, but 2% is typically what you can expect to pay.
Continued Ownership Costs
Listing your house with a New Jersey real estate agent can take a few months. During this time, you will still be responsible for the property taxes, utility bills, homeowners insurance, maintenance, landscaping, and possibly a mortgage. When you add up all the expenses of owning the house each month, it can amount to thousands of dollars!
Costs of An FSBO (For Sale By Owner) Listing
While trying to sell your house on your own will help you avoid commissions and agent costs, there are other costs to consider. In addition to many of the costs above, here are some additional costs to expect when selling your house in the New Jersey area.
Heightened Marketing Costs
When listing your house, the addition of extra marking is at your discretion. However, when you are selling on your own, 100% of the marketing is up to you. You will have to pay for all online listings, printed materials, signage, and open house costs. You will likely want a professional photographer to come in to help you present the house in the best light. You can also opt to add things such as virtual tours or videos of your property.
House Preparation Costs
Getting a house ready for a sale can take a lot of work. As with a listing, there are a number of things that will need to be done before the house is advertised for sale. You will need to thoroughly clean the house from top to bottom. You should make any needed repairs, and be prepared to make more after the inspection process. Many sellers will also face storage fees for their unnecessary items, as well as the cost of a professional stager or decorator.
The Price Of Your Time
When you choose to sell the property on your own via an FSBO listing, you will find yourself spending an excessive amount of time dealing with the sale. You will need to be available for showings, create listings and marketing materials, respond to questions, process paperwork, handle negotiations and more.
Costs of Selling Directly
When you opt to sell your New Jersey house to a buyer such as Orange Sun Investments, you will be able to avoid all of the selling costs mentioned above. There are no fees, repair costs, or even closing costs. We buy directly, as-is, potentially saving you thousands of dollars along the way.