Are you thinking about selling your home for the very first time in Minnesota, and you’re wondering what those costs entail? Let’s unpack all the costs associated with getting your home ready for market, all the way up until the closing day.
The out-of-pocket cost that you should expect to pay averages approximately 11.28% of your listing sales price. Now, let’s break down that 11 percent. First up are your pre-market expenses, and those average from half a percent up until two percent, on average. These costs are typically for any repairs that you need to make or any painting that you need to do, cleaning, any professional home staging services that you hire, or big remodeling projects such as putting flooring down or updating a bathroom or a kitchen, for example. So, the rule of thumb is: the more things to do, the more expensive it’s going to be, closer to two percent or over.
Next up are realtor commissions. As a seller, you should know that you will not only pay your agent who’s selling your home, but you will also pay the agent who brings a buyer to purchase your home. Commissions range, but the average is somewhere between five and seven percent, and that depends on the agent. Now, there are some discount brokers that you can find that charge two percent, three percent, four percent—I’ve even seen one percent. But one thing I would caution you to do is to find out from each agent what they do and do not do, and don’t just focus solely on the commission. Your house is an investment, so you want to get the right person to represent your biggest asset. You want the person who’s going to give you the right marketing, the right pricing strategy, and get the most exposure so you sell your home for top dollar in the shortest amount of time. So, don’t take commission lightly and how much you could save or not save.
Next up are your closing fees, and that’s going to range from one to three percent. You, as a seller, typically pay one percent of whatever your purchase price is, and that’s going to be for state fees, tax, and your closing company’s fees that they charge. Now, if you’re contributing to any of your buyers’ closing costs, then you’re going to tack on whatever additional percentage that is to that one percent.
Lastly, your relocation expenses. That’s going to be half a percent to a percent, and that includes your movers, storage, moving supplies, any pads you do in, and perhaps a deep cleaning if you do that before you move out. In short, you’re spending a lot of money to sell your house, so you want to make sure you’re partnered with the right agent. So, do your homework researching agents ahead of time.