June is National Home Ownership Month, and the summer is historically peak season for people to make a move.
Right now, predictions are that a more balanced housing market might be on the horizon after interest rates peaked last fall at 7.7%. They’re now hovering at about 7%.
When you are selling a home, it’s easy to focus on how much you hope to earn, but don’t forget it can cost you money to get a house on the market.
According to a recent survey from Clever Real Estate, Americans report spending nearly $55,000 on home-selling expenses -- an amount that came as a surprise to 64% of the sellers surveyed.
Here’s a breakdown of those costs.
- Listing agent commission $11,136
- Buyer’s agent commission $10,467
- Repairs $10,000
- Closing costs $8,000
- Concessions $7,200
- Moving expenses $3,250
- Marketing $2,300
- Staging $2,263
The largest piece of the pie clearly goes toward commission costs, so to avoid high commissions, some sellers are choosing to forego a real estate agent altogether.
If that’s something you’re thinking about, consider this first: The Clever Real Estate survey found selling a home without professional help might not be worth the commission savings.
Sellers who did not hire an agent saved only $4,200 compared to those who did, and sellers who hired an agent made $34,000 more than those who didn’t.
If you’re not in a hurry, one more factor to consider is that starting in August, sellers will no longer be required to pay the buyer’s agent commission. That’s because of the outcome of a lawsuit against the National Association of Realtors that will reduce home-selling costs by about $10,500.
Repairs and upgrades are another major home-selling expense because the majority of today’s home buyers don’t want to take on costly renovations in an already expensive housing market.
According to the Clever Real Estate survey, 76% of sellers invested in repairs and updates to their homes.
But how do sellers know they’re making the right changes so that they will recoup the costs with a higher sale price?
Here is a ranking of the improvements buyers want, according to the survey:
- Bathroom remodels
- Kitchen updates
- Fresh paint
- Updated plumbing
- A new roof
But realtors say the renovations that will actually give you the best return on your investment are a new HVAC system, a new garage door or a manufactured stone veneer.
Ashleigh Robinson with First Florida Credit Union joined us on The Morning Show to share what real estate analysts expect for the near future.