When homeowners think about selling their house, they often focus on the sale price. But the real question is: how much money do you actually walk away with? Traditional real estate sales come with many hidden costs that can significantly reduce your proceeds.
The Obvious Costs
Realtor Commissions
The biggest cost is realtor commissions, typically 5-6% of the sale price:
- On a $200,000 house: $10,000-12,000
- On a $300,000 house: $15,000-18,000
- On a $400,000 house: $20,000-24,000
This commission is split between the listing agent and buyer's agent.
The Hidden Costs
1. Repairs and Updates
To make your house marketable, you often need to:
- Fix cosmetic issues (paint, flooring, fixtures): $3,000-8,000
- Address inspection issues buyers find: $2,000-10,000
- Update outdated features: $5,000-15,000
- Fix major issues (roof, HVAC, plumbing): $10,000-30,000+
2. Staging and Preparation
Making your house look its best costs:
- Professional staging: $2,000-5,000
- Deep cleaning: $300-800
- Landscaping and curb appeal: $500-2,000
- Decluttering and storage: $200-500
3. Holding Costs
While your house is on the market (60-90 days), you're still paying:
- Mortgage payments: $2,000-4,000+
- Property taxes (prorated): $500-1,500
- Homeowners insurance: $300-600
- Utilities: $200-400
- HOA fees (if applicable): $300-900
4. Closing Costs
At closing, sellers typically pay:
- Title insurance: $500-1,500
- Transfer taxes: $200-600
- Attorney fees: $500-1,500
- Home warranty (often requested by buyers): $400-600
- Prorated property taxes: varies
5. Concessions to Buyers
Buyers often ask for:
- Closing cost assistance: $3,000-6,000
- Price reductions after inspection: $2,000-10,000
- Repair credits: $1,000-5,000
Real-World Example
Let's say you sell a $250,000 house:
- Sale price: $250,000
- Realtor commission (6%): -$15,000
- Repairs and updates: -$8,000
- Staging and prep: -$3,000
- Holding costs (3 months): -$3,000
- Closing costs: -$2,000
- Buyer concessions: -$4,000
- Net proceeds: $215,000
You're walking away with $35,000 less than the sale price—that's 14% of the value!
How Cash Buyers Compare
When you sell to a cash buyer:
- No realtor commissions: $0
- No repairs needed: $0
- No staging: $0
- Fast closing (7-14 days): minimal holding costs
- No buyer concessions: $0
- We handle closing costs: $0
While cash buyers typically offer 70-85% of market value, after accounting for all the hidden costs of traditional sales, the net proceeds are often very similar—and you get your money much faster.
The Time Factor
Time is money. A traditional sale takes 60-90 days, during which you're:
- Paying mortgage and utilities
- Maintaining the property
- Dealing with showings and stress
- Waiting for buyer financing
Cash buyers close in 7-14 days, so you stop paying holding costs immediately and get your money faster.
Making the Right Choice
The best choice depends on your situation:
- Need speed: Cash buyers win
- House needs work: Cash buyers win
- Want simplicity: Cash buyers win
- House is perfect and you have time: Traditional sale may work
Many homeowners get a cash offer first to see their net proceeds, then decide whether traditional listing is worth the extra time and hassle.
Ready to see what you'd actually walk away with? Get your free cash offer or call us at (828) 677-2776.
Author: We Buy Houses In Carolinas