One of the biggest decisions you can make in your adult life is selling your house. There are many reasons why a property owner might want to leave their home, but there’s one reality we all face in a traditional sale: the transaction will likely be both complex and expensive. Naturally, there are timelines and expenses to think about, along with professionals and companies to work and communicate with.
To help you out, The Easy Home Buyer is here with a guide about the process and what to expect. We’ve also shared some alternative options to a traditional sale if you want to avoid the lengthy and complicated process.
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In Washington State, the cost of selling a home is typically around 11.18% of its total sales price. So, let’s say that your property is valued at $400,000 — taking away 11.18% for sale costs will leave you with $355,280 from the sale. This amount is a substantial loss, but what are the specific expenses that add up to this amount?
A traditional sale will require you to engage with a real estate agent or realtor. While the commission fees depend on their expertise, level of service, and other factors, expect to pay your agent 5.33% of the final sales price on average. That’s almost half of the total expenses for the sale! Thankfully, there are ways you can avoid needing a real estate agent, which we’ll discuss later.
Some property sellers don’t take into account prorated dues charged by their homeowner’s associations (HOAs), such as special assessments before the sale as well as clubhouse or pool memberships. These costs may need to be split between the buyer and seller, depending on the closing date.
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You’ll also need to pay title fees and title insurance, which helps you avoid future issues like conflicts in ownership or hidden liens. You, the seller, will be in charge of these payments in most cases, while the buyer focuses on the lender’s insurance policy. These fees are small compared to the others, but they can still add to the total cost unexpectedly.
Some states don’t charge transfer taxes, but others do. Unfortunately, Washington is one of the latter. The transfer tax is called the real estate excise tax (REET), and you’ll need to pay 1.1% to 3% of the total sales price for this tax liability.
Property taxes may also come up, especially if the sale is delayed. If there are existing liens because of unpaid property tax dues, you may need to address these first to attract more buyers.
You will also need to engage with an escrow company, which serves as a third-party holding the funds from the home sale. A buyer may request this as well, especially as they conduct final inspections or await the fulfillment of specific contingencies outlined in the purchase agreement. Escrow fees are usually split between the buyer and seller.
In some cases, you may consider providing a few concessions to make your property more appealing to prospective buyers. A few examples are the following.
Of course, these concessions will come at a cost, lowering your overall profit.
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When conducting a traditional home sale, here are the steps you can expect.
The first step to a traditional home sale is knowing its current market value. This appraisal is necessary because it helps you understand if now is the best time to sell or if you should wait a few weeks or months later to maximize ROI. Methods like comparative market analysis or professional appraisals can help you arrive at an accurate figure.
There are many types of documentation you’ll need to gather apart from the title. Among the most important ones to have are disclosure requirements. These are documents that reveal certain conditions of the property, such as existing code violations, material defects, structural issues, and health hazards. In Washington, the main disclosure document is Form 17.
Once you’re confident that selling now is the right decision, the next step is preparing the property for the sale. You can conduct inspections, repairs, and upgrades to ready your home for staging and open houses. This step will require you to shell out funds, so be sure to keep track of things to avoid making a huge dent in your expected income.
Realtors will use their network and resources to find photographers and platforms for marketing your property. After staging, taking images, and videos, your realtor will list your property on a multiple listing service (MLS) website, where buyers can find it. Make sure to highlight key features to increase the appeal of your home.
You will need to work with your realtor as offers come in. The realtor will help you analyze the price, financing, and timing from each offer to help you prune your choices and finally choose one that fits your goals.
The final step is closing the sale. This phase will usually last a month or two, and during it, the buyer may conduct their own inspection, secure financing, and transfer funds from escrow. The final step is signing the documents to officially finish the sale, which may require the presence of lawyers (… Yep, more expenses).
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There is no predictable way to calculate closing costs, as every home sale is unique. Apart from the commission fees, transfer taxes, and other expenses outlined above, there are other costs that may come up unexpectedly. For example, a complex real estate transaction involving multiple property owners may need the supervision of a lawyer, adding to the overall costs.
Working closely with your real estate agent becomes essential to help you predict the final expenses and avoid unwanted surprises. The agent’s expertise helps you understand which processes may require funding and how much you’ll need to shell out.
Here are a few strategies you can try to save more when selling a Washington home.
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What issues might you encounter when selling your Washington home? Here are a few challenges that could cause delays.
The pitfalls and complexity of a traditional sale can be intimidating. If you want a quicker and more convenient transaction, then working with The Easy Home Buyer is your best bet. We buy any type of property, including the following:
Ready to learn the current value of your property? Send the details to us and get a free cash offer.
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Expect to pay around 11.18% of your total sales price for agent commissions, taxes, and more.
There are various strategies you can try, such as an FSBO transaction or engaging with a cash buyer like us. These options help reduce or eliminate the expenses you encounter in a traditional property sale.
Yes. We are a legitimate company that offers quality solutions to home buyers. The Easy Home Buyer has helped many property owners in Spokane and various other areas in the region, leading to many satisfied customers.
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DRVN Investing is a cash home buyer that wants to help your family get out of a problem property quickly. We buy houses fast for cash, so trust us to get the best deal for your unwanted or damaged home or house today!
