If you plan on listing a New Orlean house, there are costs to contend with before and during the listing process, once an offer has been made, and when you find yourself at the closing table. In our latest blog, we will go over some of these listing costs so you can decide if a direct sale of your property is a better solution for your situation.
The cost of selling a house in New Orlean varies depending on the house itself, the needed repairs, the location, etc. EVery agent works differently. Some will charge you for things, while others are “all-inclusive.” Before committing to an agreement, find out what listing your house in New Orlean will really cost you!
Upfront Costs
Take care of the following things before speaking to an agent or starting a listing. You can do some by yourself, while others you may need to pay for. You may not need all of these things, but considering each one is important.
Cleaning
Clean the house from top to bottom to ensure an appealing and welcoming environment. You can do a good job of this by yourself, but a thorough cleaning by a professional can make the entire house look different. Have your carpets and flooring professionally cleaned if you aren’t replacing them. Don’t neglect the outside. If you have a second story, it might be worth it to have your windows professionally washed as well!
Storage
While you are cleaning, consider this the perfect opportunity to pack away unnecessary items. People don’t want to see personal items or clutter when they tour your home, so ensure that everything is packed away. You may want to consider using an offsite storage space until you have moved into a new house.
Repairs & Upgrades
Fix anything that is visibly broken or worn. This includes fixing and painting walls, replacing cracked tiles, and smoothing floorboards. You can also take this opportunity to make minor upgrades to fixtures or hardware. Investing money in these areas can improve the value of your home. You just need to be comfortable paying up-front.
Landscaping
You can’t have a beautiful listing with an ugly yard. The front yard is the first thing people see. It should not only be cleaned up, but should also be used to showcase your home. Adding plants, flowers, new doors, or fencing can make your curb appeal pop.
While The House Is Listed
While the house is on the market, you will still find yourself paying for the property to be on sale. There are many expenses during this time that can be avoided with a quick and direct sale upfront.
Monthly Costs
Even if you have moved out while your house is on the market, you will still need to pay the monthly utilities for the people viewing it. You will also continue paying homeowner’s insurance and property taxes until the day of closing. The cleaning and routine maintenance of the home will also need to be taken care of. With all the properties sitting on the market and going through escrow, it could be months until the house has officially closed. During this time, you could be out thousands of dollars that could have otherwise been kept in your pocket.
Marketing
Some agents include great marketing, while others do not. To successfully sell your house, ensure that the listings and photography of the home are on point. Some people even hire drone photographers to capture their homes from above.
After An Offer Has Been Made
Once an offer has been accepted, you will still be responsible for the insurance, utilities, and taxes up until the day of closing. This can add a few weeks to your time frame, depending on the lender. Most offers are contingent on an inspection and appraisal process. You can avoid the costs listed below with a direct offer from a company who purchases properties as-is.
Negotiated Repairs
Once the inspection is completed, you may need to negotiate repairs based on the severity of the results. Potential buyers will likely request that any major issues be repaired before going through with the sale. (The bank isn’t likely to fund a loan for a damaged property either.) If your buyer rescinds the offer, you will need to disclose the needed repairs to all potential buyers going forward.
At The Closing Table
Commissions
When you are signing final sale paperwork, it’s also time to sign over a check to your agent. This typically runs about 6% of the final sale price of the home.
Closing Costs
Many additional fees are lumped together as closing costs. These include document filing, title search fees, credit check costs, transfer taxes, property taxes, and more. On average, this will run you another 2% of your final sale price.
Once you add up all the costs, you can see that listing may not be right for every property. Many people find greater benefits by choosing a direct sale! Run the numbers for yourself, and make the decision that works best for you!