Selling a house pretty much anywhere isn’t cheap. Below is a breakdown on many common costs that occur when you want to sell a house in Wisconsin, and how you can avoid most of them.
No matter where you are, selling a house is pretty expensive, and Wisconsin is no different. You have to include repair costs, closing costs, moving expenses, agent commissions, and many more. All of this can end up being over 10% of your profit when you’re selling your house the traditional way! We’ll try to cover most costs that you can expect if you want to sell a house in Milwaukee by listing it on MLS, and how you can avoid some of them.
Average Expenses You Can Expect
In November 2020, the average home value was $203,369. This is the price we’ll take as a base value for all calculations we make further on. If you sell your home for that price, you can expect spending around $34,573 before the sale is closed just so you can sell a house in Milwaukee. While this will depend on your exact situation, this is typically more than 10% of the final sale price. Let’s dive a bit deeper.
Common Expenses When You Sell a House in Wisconsin
When you sell the traditional way, there are some common expenses you should expect. These include overall home preparation, commissions, buyer incentives, closing costs, as well as your moving expenses. These can take 10% to 17% of the home profit. These include 6% commissions, 3% preparations, 1-3% incentives and just as much for closing costs, and a percentage or two for relocation.
Of course, this depends on the method that you choose to sell a house in Milwaukee, as with some selling options you’ll have less expenses. This most notably includes direct buyers that will cover most of these expenses and that will buy your house as-is. However, if you list your house with an agent, these are the prices you can expect.
If you need to break down these prices a bit more, here’s what they’ll look like on average for a house that’s worth $203,369:
Agent commissions: $11,185
Closing costs: $5,084
Seller concessions: $3,051
This totals at $31,522, to which you have to add any additional expenses that might come up, as well as holding costs. And all of this needs to be paid in advance! In other words, if you don’t have cash, you can have a hard time selling your house traditional way.
How to Maximize Profit or Reduce Expenses
There are a few ways to maximize your profit or lower the expenses when you sell a house in Milwaukee. We’ll cover two of them.
1. Negotiate for a better price
One of the ways you can increase your profit is to increase the sale price of your home. However, listing your home at a much higher price isn’t the best idea, as this way you’ll reduce the number of potential buyers. Instead, lift your price for a little bit, then negotiate to keep your price close to the valued price. This way, you’ll end up selling your house for as much it’s really worth instead of lowering the price, which is a common problem in buyer’s markets.
Ensure you know your priorities before you start the negotiating process. If you want to sell a house in Milwaukee fast to cut on holding costs, you might have to prepare yourself to lose a bit of profit. Lowering the price is the best way to cut on holding costs. However, even this isn’t a guarantee. Still, if you want to profit, then negotiating is the best way to go. Offer to give your buyer a gift or to cover closing costs if they’ll pay a higher price. Don’t accept lowering the price too much, even if that means you’ll lose the buyer.
2. Sell to a direct buyer
The best way to avoid expenses altogether is to skip working with a real estate agent and to sell a house in Milwaukee to a reliable direct buyer such as Sparks Property Investors LLC. When you work with direct buyers, you can forget about most expenses associated with a home sale. As they’ll buy your rundown property as-is, you don’t have to worry about repair and renovation costs. The same goes for staging and photographing costs. Direct buyers don’t care if your house isn’t in perfect condition. Often times, you can even just leave things you no longer need in your property, and they’ll take care of that, as well. This lowers your moving costs, as well. Direct buyers will cover closing costs, and sometimes they’ll even agree to cover legal fees. Not to mention they pay in cash, so you don’t have to wait for banks to approve the payment. So, while it is true that direct buyers offer a lower price, in the end you will end up profiting the same as if you were to sell a house the traditional way – and you won’t have to pay anything up front.