| The thought of selling a house strikes fear into most people. The contracts, the legalese, the exorbitant costs -- they all conspire to make the experience unpleasant at best, and a nightmare at worst. It doesn't have to be that way, though.
Let's take a look at three different scenarios for selling the same house. We'll assume an average house in an average town in America, whose market value has been established at $150,000.
Scenario 1: A Traditional Home Sell
If the value of the home is $150,000, a realtor will often suggest a list price of $149,900 -- and rightfully so. Although you lose $100 before the house ever goes on the market, studies show that buyers actually see a difference in the two prices much greater than $100, so the ultimate benefit outweighs the initial loss.
Statistics show that the average home sells for 90 to 95% of the asking price, so let's suppose you accept an offer of 93% -- or $139,400. That's not bad, but it's not what you actually walk away from closing with. There are several other costs that figure in.
The realtor, on average, will take a 6% commission. That reduces your price by $8,360 to $131,040. The average seller contribution to the buyer's closing costs is 3%, so your final amount is reduced by another $4,182 to $126,858. Add in $1,000 or so in realtor-recommended upgrades to make the house show better, and your |
