Thinking about selling your home? Before you jump in, it's essential to understand all the costs involved—not just the obvious agent fees. Let’s unpack these expenses so you can manage your budget effectively, avoid surprises, and potentially save thousands of dollars.
Agent Commission
The largest chunk of your expenses when selling will usually go toward real estate agent commissions. In Illinois, commissions typically average around 5.5% to 6% of the home's sale price, but remember — this number isn't set in stone and can be negotiated.
Marketing & Preparation Costs
Beyond commissions, prepping your home for sale is crucial. Marketing costs can include staging, professional photography, cleaning, painting, and boosting curb appeal. In fact, staging alone can significantly increase your home's sale price and attract more buyers. On average, homeowners spend around 1% to 4% of the sale price preparing their homes for the market, translating to around $9,500 based on current median home prices.
Taxes & Fees
In Illinois, property taxes are paid in arrears, meaning you pay last year's taxes this year. When you sell, you'll pay prorated property taxes covering from January 1st up to your closing date. Additionally, you'll need to account for transfer taxes, title insurance, document fees, and possibly homeowner association fees. These costs should be clearly outlined by your real estate professional upfront, helping you budget effectively.
Selling on Your Own vs. Using an Agent
Considering going the FSBO (For Sale by Owner) route to cut costs? While it can save on agent fees, you'll need to handle pricing, marketing, negotiating, and paperwork yourself. Homes sold without professional help typically take longer to sell and might achieve lower prices. If you do choose this route, invest in professional photos and craft an appealing property description highlighting location and desirable home features.
Ways to Save Money
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Negotiate agent commissions — ask your agent directly.
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Leverage market conditions — a seller's market could mean buyers will cover more closing costs.
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Be strategic in prepping your home — focus spending on areas with the highest return on investment.
Ready to Navigate the Cost of Selling?
Every dollar counts when selling your home. I'm here to guide you through the process, help manage costs effectively, and maximize your profit. Let's discuss your specific situation and strategize together.
