|Posted on August 6, 2021 at 5:55 PM|
Did you think that selling a house costs nothing and is only a way to make some money? Well, sorry to disappoint, but selling a house in New Hampshire, or anywhere else for that matter, comes with a set of expenses you probably know little about. So, the whole ordeal can turn up pretty expensive. Think about the repairs and staging you will have to do before listing, then the agent's commission and closing costs. Unfortunately, it all adds up and can eat up as much as 10% of your home value.
In some cases, the sale costs can be even higher. This article will go over all the hidden expenses of selling a home in New Hampshire. Also, we will give you some tips on how you can reduce these costs. Real estate rebates are one example of how you can do that.
Average expenses of selling a house in New Hampshire
Average homes sell for $300,000 to $400,000 in New Hampshire. So, if we take that you want to sell your home for about $320,000, you may end up paying a whopping $55,000 to actually sell it. Of course, the exact amount will depend on various factors and your situation, but, as we have mentioned, prepare yourself to pay 10% or more to finalize the transaction. It will be the most realistic expectation if you get full service from your real estate agent.
These are the most common expenses that home sellers in New Hampshire face:
• Preparing your home for sale - home improvements, renovations, staging
• Realtor commission
• Buyer incentives, i.e., seller concessions
• Closing costs
• Relocation costs
Of course, the exact costs of these are not set in stone. Firstly, sometimes you can negotiate your agent's commission. Also, you may want to opt for an FSBO (For Sale By Owner) option and bypass an agent. Secondly, every home is different, and the improvements and renovations will cost differently for different houses depending on the work done. Also, relocation costs are very case-specific and depend on how far you are moving and how big of a household you will transfer. The experts from fit2movenh.com advise getting free moving estimates from several companies to get the idea of how much your relocation will cost and pick the company that will suit your needs best.
Furthermore, keep in mind that a portion of the money will also go on mortgage payment if you haven't paid off the house you are selling.
Now, we will discuss each of the points mentioned above in more detail.
Preparing your home for sale
You always have an option to sell your home "as-is." However, if you want to make more, increase your home value, and attract qualified buyers, you will have to invest in some improvements. Of course, you will have to consider what type of improvements to implement to ensure the most ROI.
Depending on the age and state of your home, its size and layout, the garden size, and repairs your real estate agent has deemed necessary, the costs of preparing your home for sale will vary considerably.
Still, there are some improvements you will be best off making:
• painting the interior
• replacing or cleaning the carpeting
• hiring professional deep cleaning service
• doing minor repairs
More extensive projects will require a more considerable budget. Therefore, you should discuss your plans with your agent to determine whether they would be a wise investment. You don't want to spend a tremendous amount of money on a renovation project, and the added value it brings is nowhere near the amount you invested.
Agent's commission fee
In New Hampshire, real estate agent commission fees are typically around 5-6% of the home's final selling price. Since there will likely be the buyer's agent as well, this percentage is shared between the two agents.
Now, this is where Top Agent Rebate comes to the rescue. They will connect you with an agent who has the expertise to guide you through the entire process and ensure you get the best deal possible. On top of that, they will rebate you 15% of the commission fees back. Whichever type of real estate transaction you need, they will pair you with a reliable agent.
Thus, if you are in the business of selling your home, why do it on your own when you can benefit from expert advice from an experienced agent and get a portion of their commission back. So, fill out the application and sell your home quickly and most affordably.
Negotiations and incentives you may offer
Once you list your home for sale and an interested buyer places an offer you are willing to accept, negotiations begin. Sometimes, you may want to incentivize the buyer to purchase your home by making specific concessions. Depending on the area you live in, the market, and the demand, offering incentives may be necessary to ensure the deal actually happens.
Seller concessions may include offering to pay for home inspection fees or even home insurance, giving some repair credits (if the buyer notices some issues with the house they don't like, they will likely use it as room for negotiation), or covering closing costs. Typically, these concessions range from 1.5% to 2%, and the type of loan the buyer got limits them in terms of how many demands they can make. However, concession can take up as much as 9% of the total selling price in some cases.
Closing costs actually imply a variety of different fees and expenses. Both the seller and the buyer pay for these. Closing costs include the title insurance, outstanding bills, taxes, and fees, transfer taxes, and recording fees. Moreover, they also involve attorney fees which are required in New Hampshire. Finally, it may include a loan payoff fee if that is applicable. All in all, closing costs take up between 1% and 3% of the total home selling price. That is, that is the amount the seller will typically cover. The remainder of the costs falls on the buyer.
However, when it comes to closing costs, everything is negotiable. So, who will pay for what exactly depends on the situation. Having a real estate agent by your side is good to have in these situations as they can explain and predict how much you, as a seller, can expect to pay.
Moving expenses are most commonly an integral part of the home selling process, and you have to consider them as a good chunk of your final home sale profit may go to cover them. Again, depending on how far you are moving and how many items you are relocating, the costs will vary. Moreover, there is also an option of a DIY move, in which case you can save considerably. However, it is crucial to determine what the simplest way to transfer to a new home is. Sometimes, hiring residential movers is the best and the most cost-efficient option.
Furthermore, it's not only the move itself you will have to pay for. Sometimes, the new home is not ready for moving in yet, but the house has already been sold. If that happens, you may have to pay for temporary accommodation and/or a storage unit. If there are such gaps, and this is not something you can easily predict, you must factor in all the potential expenses.
The bottom line
As you can see, there are many hidden expenses of selling a house in New Hampshire. So, the process may prove pretty costly. It doesn't help that closing costs in this state are above the national average. However, they are inevitable, and you should prepare to cover these expenses. Still, with the help of real estate referral companies, such as Park Place Realty Network, you can lower these expenses.
Written by: Lisa Roberts with US Moving Experts