If you plan on listing a Miami house, there are costs to contend with before you list, during the listing process, once an offer has been made and when you find yourself at the closing table.
House values depend on a lot of factors. But, more often than not it comes down to the local market, the location, and the state of the house itself. Most agents will have their own routines and way of doing things. Some will charge you for things, while others are “all-inclusive.”
In our latest post, we take a look at some of these listing costs so you can determine if a direct sale would be the better choice for you.
Don’t Overlook The Costs Of Selling In Miami!
Before you even consider hiring an agent or putting your house up for sale, you will be required to sort out the following things, especially if you’re selling the convential way – with an agency!
Some of the following jobs you can tackle yourself, while others might require professional help.
To ensure your home has an atmosphere that welcomes you through the door, your house has to be spotless. No mess. No clutter. No dirt.
You could always spend a long weekend giving your home the thorough cleaning it deserves. But, bringing in a professional cleaning company is highly recommended. Experienced cleaners will be quicker than you and most likely do a better job.
If you aren’t planning to replace the carpets or the flooring, you should definitely get a professional in to do the floors. Years of dirt, grime, and odors can linger in carpets even if you clean them regularly.
Don’t neglect the outside either. The windows, walls, and doors will all need cleaning.
Our advice is you do this next bit before the spring clean of a lifetime. If you’re relocating soon anyway, you might as well get a head start and pack away everything you don’t need for the next few months. Then start cleaning.
Box up personal items, pictures, and ornaments, anything that screams, “This is MY home!” You want to give the illusion that this property could be anyone’s home the moment they walk through the door.
People don’t want to see tons of clutter or distracting holiday pics. The less unnecessary “stuff” present during viewings, the more open and inviting your home will seem. Consider renting storage or asking a relative if you can store some boxes in their garage.
Repairs & Upgrades
You will want to fix up anything visibly broken or worn. This includes fixing and painting walls, replacing cracked tiles, and smoothing down creaky floorboards.
This is also a great opportunity to make minor upgrades such as new fixtures or hardware. Spending money on these things can help improve the perceived value of your home. But, it does require you to feel comfortable throwing money at a property you’re planning to leave.
A beautiful home with stunning decor will look absolutely dreadful if the yard is overgrown with weeds and full of rubbish. You can’t have an attractive listing with an ugly yard.
The front yard is the first thing people see. Not only should everything be tidy and well-maintained but the exterior should be deliberately staged so that everything looks as aesthetically pleasing as possible.
Many homeowners will add plants, flowers, new doors, or fencing to make their curb appeal pop.
While The House Is Listed
Even listed on the open market, your property will still be costing you money! There are many expenses that you could avoid by opting for a fast, direct sale instead.
While your house sits on the market, you’ll still have to cover the monthly utilities.
You might be thinking, “But what if I’ve moved out? Can’t I disconnect the property from the utilities then?”
NO. Potential buyers will want to view a property that’s up and running with the power on. What happens if it’s the height of summer and your agent can’t turn the AC to keep the property cool? What happens if someone pops over for a late viewing and can’t turn the lights on?
Even if you’ve moved out, you still need to keep paying for water and electricity! Plus, you’re responsible for covering the homeowner’s insurance and property taxes up until the closing date.
You’ll also need to keep up with routine cleaning and maintenance. Even a vacant home can get dusty over time and everyone knows how fast a garden can become overgrown!
So many properties sit on the market for months before finally selling. During this time, you could end up spending thousands of dollars on seemingly pointless expenses.
Some agents will include a great marketing package, while others will not. To successfully list your house, you need a fantastic, eye-catching ad with professional-grade photos of your home. Some homeowners are even hiring drone photographers to capture their homes from above.
After An Offer Has Been Made
Once an offer has been made, and accepted, you’ll still have to cover the insurance, utilities, and taxes up until your sign the title over.
Depending on the buyer’s lender this in-between period could be several weeks. Most offers are contingent on an inspection and appraisal required by the bank or lending agency. Plus, it’s not uncommon for a buyer’s financing to fall through at the last minute putting your property back up for sale.
Once the inspection has been completed, there may be repairs or issues that the buyer uses to coerce you into giving him or her a discount on the house.
If there’s a major problem, the buyer will more than likely want you to fix it before going through with the sale. Plus, most banks won’t fund a loan if the property is damaged either. If your buyer decides to rescind their offer, you’ll be required to disclose the needed repair to ALL potential buyers going forward.
At The Closing Table
Once the deal is finally complete, you’ll have to write out a check to cover your agent’s commission fees. This will typically run about 6% of the final sale price of the home.
Many additional expenses are lumped together at the end as “closing costs.” These include admin fees, title search, credit checks, property taxes, and more. On average, this will cost you another 2% of your final sale price.
Once you add up all theses costs, it’s immediately clear that listing may not be the right choice for every property. Many people find the opting for a direct sale is better for their situation! Run the numbers for yourself, and choose the route that suits you best!