With the supply of homes for sale low and demand for homes high, selling your home should be a breeze. The median listing price for a home in Phoenix, AZ hit $450,000 in June 2021. But a lot goes into selling a home that could slow down the process and cut into your own budget before you even reap the rewards.
If only it was as easy as list your home, sell your home, collect your check.
So what exactly does the selling process entail for a homeowner? And how much does it cost to sell a home?
To answer your questions on the average cost of selling a home in 2021, read on. We'll break down costs throughout the process and offer a cheaper, faster alternative to traditional home selling.
Costly Renovations
Before your home can be put up for sale and open for showings, you have to assess what parts of the home need updating. But depending on the state of your home, renovations and repairs can quickly burn a hole in your pocket.
Painting the home's exterior will boost your home's "curb appeal" to potential buyers, but can cost an average of $2,900 depending on your home size.
Got an outdated kitchen or bathroom? That'll run you between $20-$40k for the kitchen and $10-$20k for the bathroom. Even if these rooms only need minor updates, you'll still be spending upwards of $7,000 just to renovate the essentials.
Unexpected Repairs
Let's say you make renovations, put your house on the market, and get an offer. Before closing a deal, the inspection contingency must be honored. During the inspection, unknown issues can pop up leaving you with even more unexpected repairs to take care of.
Oh, and the buyer has the right to withdraw their offer after the inspection under this contingency. What a hassle!
Commissions & Closing Fees
Beyond renovations and repairs, you'll have to lose a portion of your selling price. When working with a realtor, the seller pays commission fees for both the buyer AND seller. This fee can be upwards of 6% of your selling price. So for the median home price in Phoenix of $450k, that means $18,000 could go to the commission fees.
If you choose not to use a realtor and list your home as for-sale-by-owner, you'll have to take on all the usual duties of a real estate agent. Duties such as showing the home and negotiating all on your own can be time-consuming for the ordinary homeowner.
While Arizona voted to ban real estate transfer taxes in 2008, there are still closing fees to deal with to sell your home. Taxes, escrow, notary fees, you name it! It all adds up.
So What Is the Average Cost of Selling a Home?
The simple answer is that the standard home seller in Arizona can spend $16k-25k in costs. The reality is that all of the costs explained above will differ based on the home you're selling and your individual situation.
An Alternative to the Traditional Home Selling Process
So how can you avoid all closing and commission costs? What if you need cash? What if you don't have time to wait weeks on end for the deal to close?
There is a better way- you can work with a home-buying company.
With a cash buyer, it really can be as easy as sell your home and collect your check. To sell your Phoenix, AZ home on your time with no hassle, call AZ Home Buyer today.
