The Real Price of Selling Your Home
Your home is more than where you live. It is usually your largest asset and one you invest in every month. When it comes time to sell, you’ll have lots of decisions to make. Two of the most important considerations are selling costs and managing your stress through the process.
Complicating matters is the emerging challenge brought on by the CoronaVirus. Since COVID19, the number of homes on the market in Washington DC has dropped 22% below 2019 figures, according to the Redfin Data Center. Economic uncertainty is driving both buyers and sellers out of the housing market. Until the double digit unemployment rates decrease, real estate could be tricky.
In order to make the best decision, it is important to get a realistic picture of the costs and benefits of selling your home with a realtor or using real estate investment firm, such as ZVestors. The Washington Post reports “homeowners spend an average of $15,190 to sell their home. That cost is significantly higher in the Washington area, where the cost averages $29,667, nearly double the national average.”
What exactly costs so much money? Preparation and closing costs, which are the responsibility of the seller, often add up to more than you would think.
Preparing Your Home for Sale
Preparing your home for sale includes up front expenses like carpet cleaning, interior painting, and repairs. Your real estate agent may also recommend exterior changes to increase “curb appeal” that include lawn care, new plants, and painting. After the improvements, you will also need to invest in staging, which frequently includes storing some of your belongings and renting show pieces for the house. These updates will cost you several thousands of dollars, so be sure to make a complete list and estimate your out of pocket expenses for each.
You will also want to consider how you will disinfect your home for COVID19 after a viewing. In order to keep your family, your realtor, and prospective buyers safe, you will need to have procedures in place. The CDC has recommendations you will want to follow.
Closing Costs
The next set of expenses to consider: closing costs. These fees are paid by the seller and include sales and transfer taxes and real estate agent commissions. These fees can be especially high in the Washington DC Area. A recent article from WTOP News reports the Washington metro ranks seventh-highest for seller costs in the nation.
The real estate agent commission is by far the biggest seller expense. In Washington, closing costs including agent commissions and sales tax averages $28,869, according to the popular real estate site, Zillow. These fees usually equal another 8-10% of your home’s sale price.
Other Considerations
Zillow reports that 56% of those surveyed considered not knowing whether their home will sell to be a major source of stress. Especially if you are trying to buy a new home, paying the mortgage of your current home can easily blow your budget. For many it just isn’t an option.
Homes often spend three months or more on the market, but the current economic climate could impact that time frame. You should be prepared to wait up to six months or more to find a buyer.
Selling to a Real Estate Investment Firm
There are several reasons you may want to choose an investment firm to buy your house. These include time, expense, and ease of process.
Be sure to choose a firm that is responsive. Does the firm have a professional webpage? Is there a contact phone number that directs you to a person? Do they have reviews or testimonials on their website? And are their policies posted and clear? All these questions will help you determine which company is best.
ZVestors
ZVestors buys property in the DC Metro Area, Maryland, and Virginia. Most sales can close in a matter of days after a customer accepts an offer. ZVestors pays cash for homes and eliminates the need for upfront expenses, fees, and commissions. To learn more about ZVestors, visit them online at www.zvestors.net. You can also call 703-259-0570 and talk to a team member about buying your home.
References
Selling a House in The DC Area Can Be Expensive WAPO
https://www.washingtonpost.com/news/where-we-live/wp/2017/06/20/selling-a-housecan-be-expensive-in-the-d-c-area/
CDC COVID-19 Disinfecting Procedures
https://www.cdc.gov/coronavirus/2019-ncov/community/disinfecting-building-facility.html
Hidden Costs of Selling a Home in DC
https://wtop.com/business-finance/2018/04/the-hidden-costs-of-selling-a-house-in-d-c/