Real estate commissions, which are typically approximately 5%, are always negotiable. Each real estate office involved gets a portion of the commission. According to the National Association of REALTORS®, this expense is almost always paid by the seller. When the house is projected to sell fast and the local market is strong, or if the home is in the high-end market and in a pricey bracket, a REALTOR® and his brokerage firm are more willing to take a smaller commission.

Basic Seller Services.

A few home sellers will always try to avoid paying commissions by trying to sell themselves. In this case, expect to do all of the tasks of a real estate agent listed here in addition to selling the home at a 20%+ discount. Remember, buyers are not searching for homes listed by homeowners to save the seller any money; they are searching for a home they can buy for 50 to 80 cents on the dollar. The two paths are to either sell your property for full market value with a REALTOR® and pay a roughly 5% fee, or sell it at a 20%+ discount, do all the work, and pay no commission. Even if you sell your home yourself, you will still bear all additional charges, which average between 2% and 3% of the sale price.

For Sale by Owner. 

Repairs and improvements. If you are selling your home, there are always minor improvements you can make to increase its attractiveness and market value. For example: painting the inside and/or outside of your home; fixing a stairway or a leaking faucet; de-cluttering and cleaning. A new kitchen and bathroom can also significantly increase the value. If the buyer’s home inspector observes defects like a leaky roof or faulty plumbing, you may have to pay to address them before closing. Prepare to make some repairs before selling, especially if you expect problems to be discovered during a home inspection. Inspecting the house before selling it may help too. A pre-sale house inspection is optional and may cost around $475. It’s wise to make the effort to find out about structural or mechanical issues before a buyer arrives with his or her home inspector. If you can undertake the repairs ahead of time, you avoid the risk of a buyer requiring them or asking for a price reduction. Ask your Illinois Star REALTORS® agent for a pre-sale home inspection. Remember that if your home inspection uncovers significant flaws, Illinois law requires that you disclose them to the buyer.

How much is my home worth?

Staging. When a buyer views a new home for the first time, they imagine themselves living in that home. As a seller, invest in aesthetic upgrades like new paint and flooring. Adding fresh plants or flowers to the front yard can also help attract buyers. While some staging may be done without professional help, hiring a professional can pay dividends. Professional stagers work to highlight a home’s greatest characteristics while reducing its flaws. They rearrange furnishings and depersonalize the home. They may even repurpose a room in an unexpected way. Expect to pay a few hundred dollars at least. For unoccupied homes, staging can be very helpful. REALTORS® can utilize furnishings to highlight the potential of a house.

Utilities. If you want to vacate your property prior to selling it, you will have to continue paying for water and electricity. Without air conditioning, heat, and enough lighting, a property would be difficult to display to prospective buyers. Your current utility bills will give you an indication of the monthly cost of leaving the utilities on until a new buyer moves in.

 Expired listing. 

Existing mortgage loans The profits from the sale of your property will be used to pay off your mortgage. The amount shown on your mortgage statement may be less than the total amount you owe. You will need to add interest through the day of closing to the final amount. Most mortgages do not have prepayment penalties, but if yours does, you may also be charged a fee to pay the mortgage off prior to its maturity. Check your loan documentation or call your lender to see whether this is the case.

How much does it cost to sell a house and buy a new one? Check out this housing affordability calculator.

Title Company closing and additional fees. Buyers and sellers both pay closing fees. If you’re selling your home in a buyer’s market, don’t be shocked if you’re asked to cover part of the buyer’s costs. For example, there may be assessment fees, unpaid property taxes, attorney fees, transfer taxes, title insurance, escrow fees, a brokerage fee, a courier fee, a wire fee, title endorsement fees, homeowners’ association documentation fees, and others.

Mortgage Payoff Calculator.

Capital gains. Be mindful of the tax implications. When you sell a property for more than you paid for it, the difference between the purchase and sale prices is considered a capital gain and may have to be reported on your federal income tax return. Most homeowners are eligible for a tax-free profit of up to $500,000 if married couples file jointly and the property was their principal residence for at least two of the prior five years. For further information, see your tax specialist.

Free home valuation, market appraisal.

Property tax. Sellers should also consider property taxes. The seller is responsible for paying the prorated portion of the unpaid property taxes up to and including the closing date. You will have to credit the buyer a fair amount for tax bills that are either unpaid or not yet released when taxes are paid in arrears. Payment of any unpaid property tax is NOT a closing cost, but a credit to the buyer for the time you owned the home through the closing date. County tax bills in Illinois are paid in arrears.