In the face of rising real estate prices, sellers need to know the ins and outs of selling a home so they profit handsomely from the sale. For example, they must be able to negotiate smartly, and they must also be able to minimize out-of-pocket expenses wherever possible. Here are a few ways to reduce closing costs and sell a house fast in Phoenix.
Understanding Closing Costs
Closing costs vary greatly by state, but you can expect to pay between 5% and 10% of the home’s sale price in closing costs – Investopedia on closing costs.
Therefore, the closing costs on a $500,000 home could be anywhere from $25,000 to $50,000. These expenses are typically deducted from your proceeds at closing.
Some common closing costs are:
- Realtor commission
- Title transfer fees
- Property taxes
- Escrow fees
- Legal fees
- Home Insurance
- Appraisal fees
- Inspection fees
How To Avoid Or Reduce Closing Costs?
1. Hire A Reputed Realtor
A good realtor will know how to market your house effectively to potential buyers. They’ll also be familiar with the legalities and processes that can help you reduce the costs associated with selling your home. For example, some realtors work with title companies that offer discounts to their clients. Additionally, many realtors will be willing to negotiate their commission with you.
2. Make Cost-Effective Repairs Or Upgrades
There are many things you can do to prepare a home for sale, but one of the most important things is making necessary repairs and upgrades. You can make these repairs and upgrades affordable by shopping around for low-cost appliances and equipment. Also, you should maintain your home well after making repairs, as this way, you don’t run into any problems during the inspection.
3. Have The Buyer Bear Some Of The Costs
Get the buyer to cover some of the closing costs. This is possible if they really want your home. You could also reduce the asking price if they agree to bear the closing costs. In this case, it’s a win-win: you avoid closing costs while they get the house they want.
4. Include Appliances And Furniture In Your Final Offer
This could be an attractive incentive to a potential buyer, as they won’t have to spend money out of their own pocket to furnish the home. If you decide to include this in your offer, make sure you are upfront about it. And don’t forget to disclose all costs associated with furnishing the home.
5. Sell Your Home For Cash
A cash home sale will remove most of the hassles associated with a traditional sale and save you a considerable amount of time and money. Cash home buyers in Phoenix don’t require you to repair or upgrade the house, so you save money there. Moreover, they don’t charge any realtor fees or commissions, so you save big there. And they can even take care of the closing costs, saving you thousands.
Selling a house costs money, but with smart negotiating and reasonable concessions, you can reduce the cost by a lot. Or, you can avoid this lengthy process by just selling your Phoenix home for cash.
We buy houses in Phoenix, regardless of condition or location. And we can close in as little as 30 days.