The Hidden Costs of Selling Your Katy House
Homeowners dreaming of selling your Katy house are not usually thinking about how much it is going to cost them. However, not all of the money that the buyer offers is going to go into your pocket.
Most Katy homeowners are familiar with the real estate agents commission, but where does the rest of the closing cost money go when selling your Katy house?
Agent Commission Explained
The standard agent commission rate is 6%. Some Katy sellers get annoyed thinking of their agent keeping 6% of their money, but that isn’t the way it works. The commission amount is split between the seller’s agent and the buyer’s agent. It is usually split evenly, but there are times when the seller’s agent receives a larger split.
The commission is not pure profit for the real estate agent. They have many expenses that they need to cover. The commission is their payment for the amount of time they spent working to sell your house, and it also reimburses them for the marketing money they spent to get your house sold. Agents usually work for commission, meaning they don’t receive a steady paycheck. The commission rate is their paycheck.
Closing Costs
In most circumstances the Katy buyer is responsible for covering the majority of the closing costs, but sellers will usually have to cover some as well. On average the seller will have to pay an additional 2% of the sales price for closing costs. This money goes toward escrow expenses, transfer taxes, and prorated property taxes.
Most of the fees involved with closing are set in stone, but if you are planning on using a real estate attorney you can potentially save some money by comparing their fees. Comparison-shopping can save you a few hundred dollars.
For Sale by Owner
You might be tempted to try selling your Katy house as a For Sale by Owner to avoid having to pay the additional fees, however, there are some factors to first consider. Real estate agents are professionals and there are many advantages to listing your house with one.
Your real estate agent handles all the marketing and works on promotion the house to get it seen by as many buyers as possible. They are also able to list your house on the MLS, which allows it to be easily found by all buyer agents in the Katy area.
Your agent also handles all the correspondence with the buyer’s agent. You don’t need to be present for showings, or be the one to answer any questions from the buyer or their agent. An experienced agent will also help you with establishing an accurate market value for your house to determine an appropriate listing price.
No Katy seller is excited about the idea of losing money that they could have kept when selling your house. Foregoing a real estate agent could save you 6% of the fees that you would pay to the agent. However, an experienced real estate agent can help you get and close the sale that you might not have gotten otherwise.
However, if you are in need of selling your house fast – for whatever reason – reach out to our team at CD Empowered Homes. With the ability to make a cash offer, we can help you get out of your home FAST.