You will find that selling a home is not a quick or simple process whether you live in Texas or California. Even if you think that selling a house means you can get plenty of profit, you’ll also find that a home sale initially costs a fair amount.
Here, you will learn all about the typical fees when selling a house in Texas. For example, you will find out about the commission fees of a real estate agent, the closing costs on a home, property taxes, the cost of renovation, and the real estate attorney fees.
You will also find out how fees when selling a house differ between Texas and other states. Keep reading to learn more about house selling fees. Let’s get started!
What Are House Selling Fees?
So, what are house selling fees?
Home selling fees include tons of different costs ranging from the realtor fees and the average cost of renovations to HOA fees and pre-inspections. You will also need to cover the costs of professional cleaning, home staging, and professional photography. You will also have to pay closing costs, moving costs, capital gains tax, and utilities until the sale is complete.
As you can see, the number of house selling fees is enormous. You may also need to pay off the remaining balance on your mortgage loan if you haven’t paid off the loan yet.
Furthermore, homeowners may have to cover escrow costs as well as pay for landscaping work to improve curb appeal and attract more potential buyers. Often, the buyer covers the costs of a home inspection. Some of the biggest house selling costs are usually related to home improvements.
Do House Selling Fees Differ in Texas?
Do house selling fees differ in Texas? Yes,
How house selling fees differ in Texas relates to the average cost of home repairs in different states as well as the total cost of the seller closing costs based on the property price. Every state has different fees for real estate services and the property costs differ as well.
In Texas, the property taxes and transfer fees depend on which county you reside in. Also, the real estate attorney fees may depend on the Texas location as well.
You’ll find that the total cost to sell a home in Texas is approximately 16 percent of the entire home sales price. For instance, if your home gets sold for $400,000, you will have spent around $64,000 to sell the house.
Texas and other regions currently have certain supply chain problems and labor shortages. As such, remodeling the home can cost plenty right now even if it does improve the final home sale price.
Nonetheless, you’ll want to make sure to repair certain problems like a broken air conditioning system or a leaking roof. Major issues will need repairs if you’re selling through the regular real estate market instead of selling to house flippers who can handle these fixes themselves.
Repairing a roof costs anywhere from $4,000 to $30,000 in Texas. Fixing the HVAC system costs $4,000 to as much as $9,000 in Texas. Other than major repairs, consider pursuing DIY renovations to save on costs.
It can cost you $1,719 on average to stage a home in Texas. The real estate agent commission fees, however, remain at 5 or 6 percent in most states including Texas. Nonetheless, you may have a chance to negotiate a lower fee with your real estate agent.
Types of House Selling Fees You Should Be Aware Of
The multiple different types of house selling fees you will need to consider include:
- Property taxes and the transfer tax
- Capital gains taxes
- The commission fees of the listing agent and brokerage fees
- Mortgage payoff to close out your loan
- Escrow fees
- Buyer’s closing costs
- Home repairs and renovations
- Utility costs until the home sale finishes
- Stager fees
- Moving costs
- Seller concessions
- Real estate attorney fees
- Property survey fees
Essentially, the house selling fees are large and you will need to create a budget to cover many of these expenses. You’ll need to figure out which type of costs you can handle and which to bypass.
The realtor fees are usually 5 to 6 percent to cover the commissions of the listing agent, the buyer’s agent, and the brokerage firm. The attorney fees, transfer taxes, and some other minor fees can cost 2 to 4 percent of the final home sale price. Your home value can help cover many of the service fees upon closing.
If you are a first-time home seller, you may not know that you can negotiate realtor fees. The competitive real estate market is making real estate agents more willing to lower their commission fees to get the job.
With higher home sales prices in the seller’s market and houses getting sold faster, realtors are more willing to settle for lower agent fees.
Furthermore, you can reduce costs by choosing a discounted real estate agency or personalized agents who will perform specific tasks like listings and showings. Otherwise, you can choose full-service agents who will still take a lower fee.
When negotiating fees with a realtor, you will need to use the following tactics:
- Understanding how the fee structure works
- Asking whether they’re willing to reduce their fee
- Speaking with multiple listing agents to pick lower prices
- Remaining respectful
- Negotiating realistic discounts
- Researching your local real estate market
- Working to reach a middle ground
- Use creativity, such as developing a deal for a faster sale at a reduced fee
Taking these steps for a discount on realtor commission fees can save you as much as $3,693 on average.
You will need to hire a real estate attorney to negotiate the dealings on the home sale contract. The lawyer will handle all paperwork and documentation for the home sale along with the real estate agent. The lawyer fees get handled at closing. The profit you make from the home sale will cover the real estate attorney fees.
Usually, you can expect the lawyer fees to end up around $500, but this can depend on the location and the amount of workload related to the home sale. In general, real estate attorneys bill anywhere from $150 to $350 per hour.
The cost of the attorney will depend on location, their level of experience, the services provided, and how complicated the real estate transaction was. Sometimes, you may find an attorney who can charge a fixed fee to prepare all closing documents.
You will find that the average mortgage lender, whether a bank or a mortgage loan company, will require a buyer to have a property survey conducted before the loan is approved and finalized.
A property survey fee is either as low as $84 or as high as $600, according to the Federal Reserve Board. The median cost of the survey is about $154. However, on average, the property surveys are about $350 for a regular home sale transaction.
The fee cost can depend on the size of the property, the terrain the house is located in, the shape of the land, and accessibility.
Luckily, you will probably find that the buyer can cover the survey fees. In some situations, however, the seller pays the real estate survey fees. Buyers would benefit from getting a property survey conducted, as it can show any defects of the land and any encroachments that can make it more difficult to landscape the property.
For instance, future homeowners may want to add a pool or a large fence to the property. In such cases, a property survey can help determine if these changes are possible.
Does Selling to a Cash Home Buyer Remove House Selling Fees?
You will benefit greatly by selling your house for cash to a real estate investor, house flipper, or cash home buyer. Selling to a cash home buyer means you won’t have to cover many of the typical house selling fees.
For instance, some real estate agencies will charge an initial fee for listing your home with a realtor. You will also need to pay for cosmetic upgrades and repairs. You may need to pay for a photographer and a home stager. However, selling to a cash buyer means you won’t need to pay for all these initial costs.
Also, you may lose out to a standard buyer after a home inspection, as they may expect you to make more repairs or require a reduced sales price. With a cash home buyer, the sales price agreed upon will stay the same regardless of needed renovations.
Lastly, you won’t need to cover the real estate commission costs of 5 to 6 percent of the final sales price, as working with cash buyers means selling a house without realtor services.
You should now understand the typical fees when selling a house in Texas. When you need to sell a house fast in Texas, you should seek out cash home buyers in Tyler and other Texas towns. And we buy houses Jacksonville loves, so make sure to call us today!