26 min read Jul 01, 2022

Selling A House In America: 7 Things You NEED To Know

Selling a House: A Comprehensive Guide for Home Sellers

In only 24 months (since April 2020) US home prices soared by 37%. Fed has planned to curb this growth by increasing the mortgage rates. This may lead to a fall in the home prices in 2022 & 2023. If you are planning on selling your house, it is best to do it asap.

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1. When is the Best Time to Sell a House?

The home-buying season starts in late spring and runs throughout the summer, peaking somewhere in the months of June and July. Selling during these months can help you fetch premiums of 10% or more.

21% of the homes are listed on a Thursday as they sell quickly and are more likely to sell above the list price.

So the best time is June or July on a Thursday. Several other factors like holidays, the start of school, etc. should also be taken into consideration. Also, note that the best time to sell your home can vary by state.

That said, never try to time the market. Interest rates are going up, and the economy is facing headwinds. So, the best time to sell your house is when you’re ready.

2. How Do I Price My Home Competitively?

Pricing your home competitively is critical to a successful sale. The good part is it is simple to arrive at a list price. An analysis of the current active and recently sold similar listings in your neighborhood will get you close. And you can refine the price further to nail down the exact list price.

In a hot sellers’ market, you can price your home up to 10% more than the neighborhood prices because of limited inventory and competing buyers.

Whereas, in a buyer’s market you need to set your list price slightly lower than the competition as there will be more homes for sale and lesser buyers.

REMEMBER! The purpose of the LIST PRICE is to ATTRACT BUYERS to your listing. It’s not your SALE PRICE!!!

What happens if you under-price or over-price your listing?

If you price it too lowYou will get multiple offers. You’ll likely call for “Highest & Best Offer” or counter the best offers. And you will sell at market price.
If you price it too highYou will get little traffic. It’ll make you drop the price, and you will sell at the market price.

Real estate agents create what’s called a Comparative Market Analysis (CMA) to determine what’s an ideal listing price for a property. If you are opting for “For Sale By Owner” (FSBO) then you can easily create your CMA with Zillow and Redfin and understand how selling a home works.

» How Much Can I Sell My House For: See how to nail down your list price in 6 steps!

3. How to Sell My House?

You have several options to sell your house. For most sellers, we’ve compiled the best ones below:

3.1. Best Way to Sell Your House: Flat Fee MLS Listing Companies

The average Realtor commission of 6% makes selling a costly affair for the homeowners. Though this percentage varies state-wise, it still lingers around 5%-6% on average, which is significant. This is where Flat Fee MLS companies are gaining popularity.

A Flat Fee MLS Listing Service Combines the Best of Both Worlds:

  • Save Thousands in Commission: Instead of paying a 2.5% to 3% listing agent commission, you just pay a $349 listing fee.
  • Maximum Exposure: You get full exposure to the MLS, Zillow, Realtor.com, Redfin, and hundreds of other websites.
  • Help When You Need It: Services like Houzeo.com offer the “Contract to Close Coaching Package”. So if you need help during the transaction at any time, a licensed broker is there to help you sell!
  • Full Control Over Your Sale: You retain full control over when to sell and whom to sell. Houzeo captures all leads and displays them on your dashboard. All offers and showings are summarized online, along with the buyer’s or their agent’s contact info. It doesn’t get easier.
  • Fast Listing & Changes: Houzeo is 100% online, and allows you to request changes instantly. Contracts are auto-generated, and turn-around times are fast!
  • A-la-carte Options: Need a yard sign, ShowingTime, lockbox? You can purchase them easily from your Houzeo dashboard!

BEST FLAT FEE MLS LISTING SERVICE

Houzeo.com

Houzeo - Selling a House
  • Listing Fee: $349
  • 5 Stars  4.9/5.0 (out of 3,264 reviews)

Why It’s The Best: Houzeo has thousands of 5-star reviews. It offers the best combination of maximum savings, advanced technology, 5-star customer support, and listing exposure.

Packages: Houzeo offers 4 flat fee MLS listing packages.

  • Bronze is $299 and is best for selling a lot.
  • Silver is $349, and includes everything competitors like FSBO.com charge $399 for.
  • Gold is $399. It is Houzeo’s signature package and includes all the technology Houzeo is known for Houzeo Showings, Houzeo Offers, and Digital Transaction Management.
  • Platinum is $449+. It includes the assistance of a licensed broker to help you with negotiations, disclosures, and closing.


👉 Our Take:
We recommend the GOLD plan. You’ll have all the access to Houzeo tech, making managing showings and offer negotiations easy!

» Houzeo Reviews: Houzeo is 100% online. You can finish the listing formalities in less than 60 mins.

  • Quick listing
  • Nationwide coverage
  • Mobile app availability
  • Savings on commissions
  • 5- star customer support
  • 100% online – easy listing, fast changes, online showings, and online offers
  • Listings get syndicated to Zillow, Realtor.com, Trulia, Redfin, and 100s of other sites

Houzeo has a 4.9 out of 5 rating on Google & Trustpilot.

Houzeo is available nationwide.

3.2. Sell Your Home For Sale By Owner

For Sale By Owner (FSBO) is a DIY method of selling the property without any third-party help. This means that there is no seller agent involved in the process.

By selling FSBO, though you save up on the listing agent commission, you have to handle everything – from listing to closing – on your own.

✍️ Note: Though the seller will save on listing agent commission, buyer agent commission will still have to be taken care of unless you find an unrepresented buyer.

🚩 Key Downsides of Selling Your Home For Sale By Owner:

  • No MLS Exposure: MLS is the most important tool an agent has. Selling FSBO means limited exposure, so there will be less competition for your property. That will likely reduce the selling price. One study found that homes on the MLS sold for 17% more than homes, not on the MLS.
  • No Help If You Need It: If you need help with paperwork, inspections, negotiations, or closing, you’re on your own as a For Sale By Owner.

3.3. List With a Traditional Full-Service Agent

A full-service Realtor will handle everything for you – right from listing to closing. But of course, you’ll be paying a full 2.5% to 3% listing agent commission.

In the traditional sense, a seller has to pay 3% of the sale price to the listing agent and 3% to the buyer agent. And even if you find an unrepresented buyer, you’re still on the hook for the full listing agent commission.

🚩 Key Downsides of Listing With a Traditional Full-Service Agent:

  • Hefty Commissions Will Cost You Thousands: Traditionally, Realtor commissions stand at 6%. That’s thousands of dollars of fees in commissions.
  • Limited Control Over Your Sale: Everything will go through an agent. That reduces the risk that you will do something wrong, but will also limit the control you have over your transaction. For almost everything, including if a counteroffer was submitted, the status of your closing, and how many showings you’ve had, you’ll have to reach out to your agent.
  • Slow & Manual Process: Agents do things manually. A simple price change is several steps – the agent has to talk to you over the phone, create a price amendment, get you to sign it, then they sign it, and only then can they update the price on the MLS.

3.4. Discount Real Estate Brokers

Among discount real estate brokers, you have three options to choose from.

3.4.1. Flat Rate Brokers

Flat rate brokers are predominantly full-service brokers i.e. they handle everything from listing to closing. They charge a flat rate which is essentially a fixed amount that does not change as per the services or the home value.

A flat rate is perfect for homes priced on the higher end. Let’s say your house is valued at $700,000 and you pick a flat-rate pricing model of a $3,500 listing fee. If you opt for the traditional agent route, you would have to pay a realtor commission of around $21,000. 

Apart from the buyer agent commission, you will also be responsible for concessions, escrow fees, and warranties. 

Good Customer Rating

Homie

Homie - Selling a House
  • Listing Fee: $3,500 flat fee
  • Restricted coverage
  • 4.5 Stars 4.3/5.0 (out of 787 reviews)

Why It’s #1: Homie has a good customer rating. And various home sellers have appreciated Homie agents for their experience and negotiation skills.

Pricing: Homie charges a $3,500 flat rate. This includes agent charges, real estate photography, MLS listing, and a yard sign.

👉 Out Take: Homie would be a good choice when selling property in Arizona, Colorado, Idaho, Nevada, or Utah. But if you are looking to sell in other states, we recommend Houzeo. Houzeo is more affordable than Homie and has nationwide coverage.

» Homie Reviews: Alternatives, and Everything You Need to Know

  • Full-service brokerage
  • Decent listing fee
  • Rebate for buyers
  • Very limited coverage
  • Limited a la carte options

Homie is rated 4.3 out of 5 on Google.

Homie covers only Arizona, Colorado, Idaho, Nevada, and Utah.

3.4.2. Low Commission Realtors

Low commission Realtors or agents are discount brokers who work on a lower commission rather than the traditional 3% commission.

With the rise of the flat fee models, real estate commissions are declining. This makes low commission real estate companies more relevant to sellers nationwide.

Generally, low commission Realtors work at commissions like 1%-2% instead of the traditional 3%.

Nationwide Coverage

Redfin

logo image
  • Listing Fee: 1.5% of the sale price
  • Available in 80+ U.S. Markets
  • 3.5 Stars 3.7/5.0 (out of 161 reviews)

Why It’s #1: Commission charged by Redfin is more affordable than other low-commission Realtors.

Pricing: Redfin charges a 1% listing fee. But it is subject to the condition that you must buy with Redfin within 365 days of the closing. Else, you will be charged 1.5%.

👉 Our Take: Redfin would be an ideal choice for regular home sellers. For an investor, a real estate wholesaler, or a home flipper Houzeo’s affordable flat fee MLS listing plans would be the go-to choice.

» Redfin Reviews: The Reality of 1% Fees, Pros & Alternatives

  • Strong technology
  • Detailed paperwork
  • Cash offer feature available
  • Thorough listing agreement
  • Rebate of 0.5% (in case of full-service plan) if you buy and sell with them

Redfin has an average rating of 3.7 out of 5 on Consumer Affairs.

Redfin has a reach in  100+ U.S. markets, giving nationwide coverage.

3.4.3. Virtual Full-Service Broker

A virtual full-service broker, as the name suggests, provides all the services, but virtually. This means, there is no physical in-person support.

Lesser fees, good technology, innovative marketing strategies, and better management are some of their key features. Most of these brokers are slowly transitioning into a cloud model to enhance their services.

OUR TOP PICK FOR THE BEST VIRTUAL SERVICE BROKERAGE

Beycome

Beycome - Selling a House
  • Listing Fee: $599 + 1% at closing
  • 4.5 Stars 4.5/5.0 (out of 326 reviews)

Why It’s Best: Beycome offers affordable MLS listing packages and is 100% online.

Packages: Beycome’s Concierge Service Package is virtually full service.

  • Concierge Service Package – $599+ 1% at closing: With this package, you get a licensed real estate professional to assist you with pricing, negotiation, and paperwork.


👉 
Our Take: Beycome is 100% online but has limited coverage and average customer support. But if you want to list with Beycome, we recommend the Concierge Service package.

» Beycome Reviews: Pros, Cons, and Alternatives – Everything You Need to Know

  • 100% online
  • Free open house scheduler
  • Unlimited updates and changes
  • Listings remain active until close
  • Free access to legal forms & disclosures
  • Limited coverage

Beycome is rated 4.5 stars on Google.

Beycome offers MLS listings in Florida, Illinois, Minnesota, Georgia, California, South Carolina, North Carolina, Alabama, and Connecticut.

How to Sell Your House Fast?

Here are three options to sell your house fast:

1.Sell Your House “As Is”Selling a house “as is” means that you sell your house without any upgrades or repairs. An example could be wholesaling real estate. This technique can help homeowners save some money.

» Selling a House As Is: A Step-By-Step Guide for Sellers
2.Offer Your House to a FlipperHome flippers in real estate are buyers that buy a property in its existing condition, repair it, and sell it at a higher price. Selling your house to a flipper will help you save both time and dollars.

» How to Flip a House: An Introductory Guide for Beginners
3.Sell Your House for CashThe sellers who are in desperate need of money usually prefer cash companies to sell their houses. Though the process is quick, a home seller might end up having less money than the market price of the property.

» We Buy Houses For Cash Companies: America’s Best Companies That Buy Houses for Cash
    ✍️ Pro Tip: Consider selling your home to an iBuyer

    iBuyers are companies that will buy your home for cash outright and close quickly.

    » iBuyers Reviews: Selling Your House for Cash in 2022

4. How to Prepare and Market Your Home for Sale?

A clean and well-prepared home combined with the correct marketing strategy can help you attract a large number of buyers.

4.1. Getting Your Home Ready to Sell

Preparing your house for showings is the best way to increase the chances of selling it fast. Some standard preparation pointers can be taken care of while selling your home. These are:

  • Declutter & Depersonalize: Tidy up your place and remove the element of personalization. This means removing personalized items such as photos. It will allow potential buyers to visualize their future in the house.
  • Make Repairs: If there’s anything glaringly wrong, take care of it early. For instance, a squeaky doorknob will not be overlooked by potential buyers. It is best to get such defects fixed.
  • Repaint Neutral: Paint your house in neutral colors, as it appeals to a larger pool of people. This will help in attracting more buyers.
  • Improve Curb Appeal: Go for clear landscape, fresh flowers, or exquisite paintings because the first impression is everything!
  • Implement Staging: The best way to sell a property is by hiring a staging professional. They would be able to utilize the spaces and furniture cleanly and attractively.

There can also be state-specific scenarios (HVAC systems, smoking detectors, fire hazard control, etc.) that you need to into consideration while preparing your house for sale.

What Not to Fix When Selling a House?

Here are the following things home sellers need not do when selling their houses:

  • Don’t do a Major Renovation: Most big home upgrades do not offer much return on investment. For instance, only 59% of the value could be recovered from a complete kitchen renovation worth $68,000.
  • Do Not Make Partial Upgrades: Unfinished upgrades make it difficult for potential buyers to visualize their future in the house. It is best to not start an upgrade project if you won’t be able to finish it.

4.2. Different Ways to Market My Home

Almost 95% of home buyers search and review homes online. So, being online is the #1 priority for the sellers. A good online marketing strategy combined with other marketing tactics can make a difference in getting your house sold.

Here are some powerful ways of marketing your home when for sale:

#Marketing TacticsDescription
1.List on the MLSHomes listed on the MLS sell faster and for 17% more. This doesn’t mean you need to hire a listing agent and pay that extra commission. You can use various types of discount listing brokers to get MLS access. A Flat Fee MLS Company like Houzeo can be a good option to list your home.

Houzeo will help you save the hefty realtor commission and get your property maximum exposure. All of this, just for $349!

✍️ Pro Tip: Research the best For Sale By Owner websites when selling your house by owner.
2.Get a Yard SignOpting for a yard sign can be a good investment when selling your home. It can help in attracting buyers from the neighborhood. On a crowded street, an attractive yard sign can drive the attention of potential buyers.

Houzeo’s yard sign can help you in this. Houzeo custom yard sign comes FREE with a selfie and it is available for $49 only!

✍️ Pro Tip: If you secure a buyer from a yard sign, chances are you’ll save on the buyer agent commission. Well worth the $49 investment!
3.Share Your Listing on Social MediaShare your property listing on social media. This will include your contact info apart from the listing details.

If you share your listing on Zillow or Redfin, all the leads your listing generates will be sold to buyer agents who’ll demand a competitive buyer agent commission.

Houzeo, on the other hand, doesn’t sell your information or leads. All buyer leads see your contact info, so you might save on the buyer agent commission.

✍️ Pro Tip: If you secure a buyer from social sharing, chances are you’ll also save on the buyer agent commission.
4.Hire a Professional PhotographerAs a seller, you can hire a professional photographer to create a portfolio of your house. Professional photos can greatly impact the selling process by attracting more buyers.

✍️ Pro Tip: A real estate photographer can collate a portfolio that otherwise may not be possible if you take up the job.

» Real Estate Photography: Creating Your Best Listing Photos
5.List on CraigslistCraigslist is still the biggest classified ad platform. And it’s still effective today. Here’s how to sell a house on Craigslist.

» More: Creative Ways To Market a House

5. How to Manage Showings and Offer Negotiations?

5.1. How to Manage Showings When Selling a House?

Once your property is ready for showings, it is critical to manage the showings effectively. You can either opt for online showing tools or host an open house.

5.1.1. Online Showing Tools

Online showing tools provide home buyers and buyer agents with a frictionless way to request and schedule showings.

Houzeo Showings, a cutting-edge solution by Houzeo, helps buyers and buyer agents choose a particular showing slot as stated by the seller. The tool also provides features like rescheduling, updating, canceling, requesting, and more.

Houzeo Showings: How It Works

#FeatureDescription
1.Set Your Showing CalendarBuyers and buyer agents should only be shown times when the property is available for showing. This saves time for all the concerned parties.
2.Buyers can Request & Reschedule ShowingsMake sure that buyers and buyer agents can request showings at available times. In addition, they should be able to reschedule and cancel on an ad-hoc basis.
3.Receive FeedbackFeedback from buyers and buyer agents is critical for home sellers because it allows them to assess their property (priced too high, the backyard needs fencing, rooms need whitewashing, and more).

Where the feedback is actionable, small remedies can go a long way in improving showings and attracting top dollar for your property.

🗓️ Houzeo Showings: See how the most powerful showing app works on mobile and web

Introducing the Houzeo Mobile App!

  • View your listing
  • Manage your showings online
  • Review and compare offers
  • Counter an offer
  • NEW! Buyers can now search your property and save it in “Favorites”

Start Your FREE Listing NOW!

5.1.2. Hosting Open Houses

92% of home buyers find open houses useful. The open houses may also attract unrepresented buyers which can help the seller save on the buyer agent’s commission.

Here are a few things to keep in mind when hosting an open house:

1.Ensure Your House is ReadyBuyers would not want to see a house with a leaky roof or broken doorknobs. Thus make sure you have fixed all the defects and made all the necessary repairs beforehand.
2.Choose a Correct TimeMost people are busy on weekdays. Thus, hosting an open house on weekends, preferably a Sunday, would be the best. Also, you need to take care of the time of day. Usually, afternoons are the ideal choice.
3.Post Open House Online93% of the buyers rely on the internet for their home searches. Thus, posting online will make potential buyers aware of the open house. You can list your open house on the local MLS, real estate websites like Zillow & Trulia, Facebook, etc.
4.Give Visitors their SpaceDuring the open house, you try to stay away from the property. This would give buyers the desired space to explore at their convenience.
5.Get Your Neighbors Involved You can invite your neighbors to the open house. Even if they may not be interested in purchasing your home, they would spread the word.

5.2. How do I Negotiate Offers When Selling My Home?

A counteroffer and requesting the best and highest offers are the two crucial negotiation methods. Negotiating offers also means focusing on other factors like contingencies, concessions, responsibility, and more.

#Advanced TacticWhen to UseHow to Use
1.Counter an OfferSingle or Multiple Offer SituationYour best offer is not just the highest one but is also competitive across several parameters: deposit, financing, inspection contingency, closing timeline, etc.

When you want to counter an offer, you can request any of the mentioned parameters updated as per your preferences.

▶️ Learn more: How to counter an offer on Houzeo
2.Request Highest & Best OffersMultiple Offer SituationIf you have multiple offers and a timeline by which you’d like to pick an offer, you can call for Highest & Best offer from all the interested parties.

▶️ Learn more: How to request Highest & Best offer on Houzeo

Most real estate brokers or brokerage companies will give you complex forms to counter an offer, or to request the highest & best one. Houzeo has digitized these, so, you can counter or ask for the highest & best with just a few clicks!

6. What Paperwork is Needed to Sell a House?

The most crucial part of selling real estate is to collate and get ready with all the paperwork to seal the real estate deal. These documents can be disclosures, agreements, forms, etc.

6.1. Disclosures Needed While Selling a House

Some of the generic disclosures that are required in most of the states are stated below:

  • Seller’s Disclosure Notice: A disclosure document that states any known issues in the house including appliances and any other systems.
  • Lead Paint Disclosure: Specifically for homes that were built before 1978. Federal law requires the seller to disclose any dangers related to lead-based paint.
  • Flood Zone Statement: A buyer’s lender may require the concerned property’s flood risk report before providing the loan. This could be important in mortgages that are backed by the federal government.

» Seller’s Disclosure: What Home Sellers Need To Disclose

6.2. Mandatory Documents for All Real Estate Transactions

While selling a house some mandatory documents are needed to make a successful real estate transaction. These documents are more or less required in all the states.

  • The HUD-1 or Closing Disclosure: When homes are purchased with a mortgage, you’ll summarize the detailed costs in the Closing Disclosure. If your sale is all cash, you may get the HUD-1, which is less common. These documents detail the amounts you’re charged for, your loan payoffs if any, and the net proceeds you will take to the bank.
  • The Deed: It enables the legal transfer of title from the seller to the buyer. Read this document carefully, verifying all details including the legal description of the property, the deed book, the deed book page, and the Property Identification Number (PIN), if any.
  • Purchase Agreement: It is a standard form of real estate contract that details the terms of transactions. It contains aspects such as sale price, financing contingencies, property description, etc.
  • Bill of Sale: It contains information about the sellers and the buyer with the selling price.
  • Statement of Closing Costs: This statement summarizes all the expenses involved in the transaction.
  • Certificate of Title: It allows you to state that you have the right to sell the property.

6.3. Additional Documents You May Need While Selling Your House

Some additional documents that may require during the closing process are:

  • Loan Payoff: You need to provide proper documentation if the disbursement of the loan amount has been completed. Else, you need to provide how much you still owe.
  • HOA Forms: If the house is part of HOA, the seller needs to give the buyer all the documentation on restrictions, fees, financials, and more.
  • Survey Papers: The documentation defines the location and the dimensions of the property. This is important while selling your own home.
  • Repairing Proof: While selling real estate, if the seller has made repairs to the property before the sale, they need to furnish the relevant documentation.
  • Closing Disclosure: The disclosure is provided to the lender and contains all the terms and conditions of the loan and closing costs.
  • Power of Attorney: If the property is inherited, then the seller needs to furnish the details of the history and how the property was passed onto him/her.
  • Home Inspection: This contains all the details about the inspection of the property.
  • Home Warranty: It contains all the coverage of the property, period, and cost of insurance.
  • Correction Agreement: A correction agreement is a document that allows the buyers and sellers the scope to correct mistakes in some specific documents like a sale deed, a title deed, etc.
  • Affidavits: A seller will need to provide a few affidavits like name affidavit, non-foreign, etc. This may also include affidavits like “Affidavit of Title” which discloses that you are the rightful owner of the property and that there are no liens on the property.

Bring TWO Forms of Official ID

A licensed notary will likely be involved in the closing process and’ll require you to swear on your identity. You would be required to furnish identity proof (like a passport, driving license, or any other authorized document) during the process. However, the closing process might also require you to produce secondary identity proof.

7. How to Close on Your Home?

The settlement agent (escrow agency, attorney, or title agency) is responsible for the real estate closing process. It is recommended (not mandatory) to hire a real estate attorney to guide you with the whole selling process as there are legalities involved.

Before we discuss the closing costs, it is important to understand some important processes:

7.1. Title, Appraisal, and Inspection

  • Title: A clear title and a meticulous transfer are key to a real estate transaction. The title insurance protects you if there is any problem related to the prior ownership of the property. It makes you whole in case of a legal dispute related to the title.
  • Appraisal: An appraisal officer does market research and evaluates the price of a specific property. The appraisal manager ensures that a correct price is offered by the seller and as per the market value.
  • Inspection: An inspector inspects the property before the home buying process is completed. They check for any defects/repairs in the property and raise concerns accordingly. This ensures that the buyers don’t have to shell out money in case there are defects in the property which the seller did not highlight.

7.2. Overall Costs While Selling a House

The following are the seller-centric costs that a seller should take care of to successfully close the deal:

  • Transfer Tax: A real estate transfer tax is the tax imposed by local jurisdiction when there is a transfer of a real estate property.
  • Property Tax: A property tax is an annual tax paid by the homeowner to the local authorities. It varies state-wise.
  • Agent Commission: The seller will have to go with the real estate commission in case he/she hires one. The seller would be responsible for paying both seller and buyer agent commission which comes out to be 6% traditionally.
  • Attorney Fee: If the seller has hired an attorney to aid in the closing process, he/she will have to pay the attorney fees.
  • HOA Fee: If the seller is related to Homeowner’s association, he/she will have to pay the dues. HOA may also include a fee to transfer the property to the right owner.
  • Title Insurance: It protects the buyer in case an important chain of title ownership is missed by the Title agent/company which could cause issues later. The premium can be paid by either seller or buyer based on the negotiations.
  • Home Inspection: In certain states and based on negotiations, a seller may pay home inspection fees.
  • Home Warranty: A seller may go for a home warranty if some components of the home (water heater, air conditioner, fans, etc.) require attention. This will benefit buyers in case a component of the home breaks down later.
  • Survey Fee: A survey of the property is generally carried out before the purchase deal. It includes all the features related to the property.
  • Escrow Fee: If there is an escrow agent involved in the closing process, then escrow fees will have to be paid to manage the closing transactions. This varies between $500-$2000 or is stated at 1% of the sale price. The escrow fees involved recording documents, holding purchase funds, transferring funds, and more. It may be split 50-50 between buyer and seller.
  • Seller Concession: Sellers may pay some upfront fee to the buyer to cover repair costs, home warranty, property tax, etc.
  • Capital Gains Tax: If a seller sells the house at a price greater than the price at which the property was bought, he/she will have to pay Capital Gains tax on real estate. Any gains should be reported to the Internal Revenue Service at tax time.
  • Other Costs: Apart from the stated costs, multiple other costs are involved to sell a home. These can be local fees related to stamp taxes, recording fees, estoppel fees, and any other as imposed by the city/county. Apart from these, there can be fees to prep your home, relocation fees, and more.

» Closing Costs For Sellers: How Much Closing Costs You Will Have to Pay?

How Much Are Seller Closing Costs?

As depicted earlier, the closing costs depend on multiple other costs like agent commission, transfer tax, property tax, and much more.

You can calculate the seller closing costs using Houzeo’s Advanced Closing Cost Calculator. The calculations are based on the latest prices and give you a detailed estimate of all the costs involved in the transaction.

» Houzeo Reviews: Home Selling made easier with Houzeo.com!

Selling a House In The US: State-Wise Details

Click on your respective state to understand the home selling process in your state:

RegionStates
NortheastConnecticut, Maine, Massachusetts, New Hampshire, New Jersey, New YorkPennsylvania, Rhode Island, Vermont
MidwestIllinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin
SouthAlabama, Arkansas, Delaware, FloridaGeorgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, TennesseeTexasVirginia, Washington D.C., West Virginia
WestAlaska, ArizonaCalifornia, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming

Final Word: Selling A House in the United States

Selling a house in the United States is complex.

You have different processes in all the states which increases the complexities further. This combined with a hefty real estate commission makes the process expensive.

A good option for the sellers is opting for Flat Fee MLS or FSBO platforms like Houzeo that make the job of the sellers much easier. Not only putting the properties on the MLS, but these platforms also provide a la carte services that can help the sellers go the extra mile.

What is Houzeo?

An overview of what the platform is all about

Start Your FREE Listing NOW!

» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.

Frequently Asked Questions

1. How soon can you sell a house after buying it?

Home sellers can decide how soon they wish to sell their house. A typical seller tends to live for about 14 years in a house before putting it up for sale.

Selling your house very soon after purchasing is not very profitable as you will have to incur various other costs. This includes costs associated with buying, the costs associated with selling, the equity gained or lost, and moving expenses.

2. How much will I make selling my house?

While selling a house in the US, home sellers have to incur various costs such as the Realtor commissions, transfer tax, settlement costs, etc. You can use Houzeo's Advanced Closing Cost Calculator to find out how much you will make by selling your house after paying all the additional costs.

3. What is the capital gains tax on real estate?

If a property is sold at a price greater than the price at which the property was bought, it is said to be a capital gain for the seller. As part of the law in the United States, sellers are required to pay the capital gains tax for the property. The capital gains tax depends on multiple factors like taxable income, marital status, etc. As per IRS, the tax rate is not higher than 15% for individuals.

4. How much does it cost to sell a house?

The cost of selling a home is the overall cost that a seller has to fish out for selling his/her house. Houzeo's Advanced Closing Cost Calculator enables sellers to check out what costs they will have to bear and how much will they make while selling their property.

5. How to get your house ready to sell?

Here are some of the best practices to get your house ready for sale:

(1) Decluttering and Depersonalizing
(2) Making Repairs
(3) Painting with neutral colors
(4) Improving curb appeal
(5) Implementing staging

6. How long does it take to sell a house?

As of May 2022, a typical home spent 31 days on the market. But this depends on several other factors such as the status of the market, listing price, condition of the property, and location. If your house is located in a hot seller's market like Colorado Springs, it can be sold as quickly as 4 days.

7. Do you pay taxes when you sell a house?

Yes, sellers do have to pay some taxes while selling their houses. This generally includes transfer tax, property tax, capital gains tax, and more. These taxes vary across states.

8. How to sell a house fast?

There are several ways using which you can sell your house fast. These include:

(1) Selling a house as is by wholesaling and flipping.
(2) Offering your house to We buy houses for cash companies.
(3) Selling your house to iBuyers.

9. Should I sell my house now?

Yes, now is the best time to see a house. Interest rates in the US are declining and if it continues, home values may also decline over time. By listing your house right now you can sell your house for the best price, quickly.

10. How long should you live in a house before selling?

There is no hard and fast rule about how many years you should spend in a house before putting it up for sale. A typical American seller spends about 14 years in their house before putting it up for sale.

11. How to sell my house that needs repairs?

Here are five tips that can help you sell a house that needs repairs:

1. Carry out a pre-list inspection to understand the actual condition of your house and disclose it honestly while listing.
2. Set a realistic price based on the property's condition.
3. Choose the type of buyer you wish to sell to - developers, remodelers, home flippers, etc.
4. Try to highlight the positive aspects of your house.
5. Try to make minor repairs that can offer a good return on investment.

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