How much will I get from the sale of my Utah County home? It’s the question on every seller’s mind when you consider selling your house. Chances are you have a good idea what your home is worth and have already mentally decided where every dollar is going to be spent after the home sells. Whether it’s going to be on a new house you’re buying, new toy boat, or on a long-desired vacation— now might be a good time to take a look at what it’s going to cost to sell your house. That’s right, selling a home in Utah has some costs involved. The professionals you choose to help you unload your property need to be compensated. So here’s the big question every seller needs to know the answer to: How much does it cost to sell a house?
How much do sellers pay in closing costs
While buyers tend to pay more in closing costs, usually about 3% in Utah county, sellers aren’t completely off the hook. You can expect to spend between 1 to 2% of your home’s price on this expense, though, 2% is on the high end. Make sure to shop around, or ask your agent what you should expect to pay. A good Utah County real estate agent should already have this estimate prepared for you.H
Utah county closing costs tend to be fixed, including escrow expenses, notary fees, etc. Thankfully, Utah does not have transfer fees! Just another reason Utah is awesome! You can also expect to pay at closing any outstanding property taxes, a prorated share of the water and sewage bills, and the remainder of your mortgage.
Real Estate Agent Fee
A real estate agents fee, on average in Utah county, usually range between 5% and 6% of the price of the home being sold (this percentage can vary and can be negotiated). During a seller’s market agents might be more willing to discount their fee especially if you’re going to use them to buy your next home. In a buyers market agents don’t usually discount their fee due to the increase risk, time, and costs involved in selling a house.
Big Tip – Offer the agent something in return for discounting their fee!
A real estate agent’s business is dependent on referrals so offering to give a good review on Yelp, Zillow, Facebook, and Google is actually a very attractive offer. Get creative! I’ve had clients post on their social media pages that they are selling their home and are teaming up with me to sell their house. Ultimately, don’t be afraid to ask, but don’t be offended if the agent doesn’t discount his/her fee. A good agent will save you money, get you top dollar for your home, and provide you with exceptional service!
Generally, an agents fee is the largest expense in the sale of a home. Some sellers might think they can save this expense and sell their home on their own, but more often than not the ‘do it your selfer’ options ends up with ‘do it your selfer’ results.
The Truth about Selling Without an Agent
Most people don’t realize if you list your house on your own, you still have to pay for the buyer’s agent’s brokerage fee. 93% of active buyers have a real estate agent representing them. To attract those agents, and theirs buyers, you need to be willing to work with them.
Here’s another tidbit to keep in mind. Here in Utah county, when buyers see a For Sale By Owner (FSBO) home, they see a BARGIN! Chances are the buyers will be represented by a real estate agent who has a fiduciary duty to negotiate the best possible price for their buyers. As a FSBO you are on your own. The buyer and their agent know you are selling your home FSBO to save on the commission and will likely negotiate at least part of that savings into their offer.
So in the end, listing your home yourself might save part of the fees associated with using a real estate agent, but not much and could end up costing you more. Consider what your agent brings to the table:
- Marketing, signs, advertising support, and professional photography
- The time and “hassle factor” savings of not having to be present for showings, managing calls, hosting an open house, setting up legal representation for paperwork, and conduct the negotiations
- The legal protection that comes with working with a licensed real estate agent in Utah county
- The professional market knowledge that can help you wisely price the house
- Negotiating expertise that allows your agent to extract the best terms and price from the buyer
- A wider pool of potential buyers that comes with listing your home on the MLS
- Access to other agents, who have or know potential buyers.
You’ve heard the saying “you get what you pay for.” Selling a home is one of the largest transactions a person will ever be involved in so it’s not something you should cut corners on to save a little bit of money.
If you are considering selling your home, get in touch with me. I will put together what I call a Seller’s Net Sheet (free of charge) so you will know what you can expect to take away from the sale of your home.