Sometimes the costs when selling a house can really pile up quickly. Once you factor everything in, a traditional sale with a Hawaii real estate agent may not be worth it (or may, depending on your situation). In our latest post, you can learn how to sell a house without spending any money in Hawaii.
As a homeowner, you’ve probably already spent some time mulling over the pros, cons and tasks involved with selling your Hawaii house. However, many homeowners avoid getting around to selling because they’re worried about the costs, wasted time, or obstacles they expect to face when working with a traditional agent. Before we discuss how to sell your house in Hawaii without spending any money (!), let’s first take a look at some of the costs that home sellers may incur when working with a Hawaii real estate agent.
Typical Selling Costs
Repairs
Before a house is presented on the Hawaii MLS for public viewing, you’ll typically want to attend to repairs and deferred maintenance. Even the cost of small repairs can add up quickly once you break it all down (you thought hiring help in Hawaii was cheap?). Fixing drywall damage, frozen valves, leaky faucets and broken tile slowly but steadily put a hole in your wallet. You’ll have to disclose any known defects and work you’ve done. Also, you’ll have to keep a budget for when the buyer asks for repairs in their inspection period after going into contract with you. And what if the appraisal comes in too low? Will you have to fix up even more? Perhaps…
Upgrades
Often, homeowners upgrade their home over time to keep up with their neighbors and the overall local market. Some add more than others, but if the other nearby homes are giving the outside a new coat of paint then you may have to do the same just to stay competitive for the day you decide to sell. You don’t want the least attractive home in the neighborhood, even if the other homes aren’t for sale.
Marketing
Marketing is a catch-all term for a variety of tasks, including (but not limited to): professional photography (no iPhones, please), aerial drone views (stay current with tech), premium listing placement, internet syndication, printed materials like flyers and brochures, and more. Don’t just assume everything is included in your agent’s listing package – get clarity on what you’re getting and what is still coming out of your pocket.
Listing + Agent Fees
Not all agents are full service. Some will hit you up for extras like open house fees or the photography. Most won’t ask to be reimbursed but don’t just assume you’re getting it all — ASK.
Commissions
The standard agent commission is 6% of the final selling price. In Hawaii, this is no small amount — it can easily surpass $40,000 by the time your house is sold. You can often negotiate this down, but does it affect the listing package you’re getting? What might you be giving up? Could you use a flat fee broker instead? Perhaps, but the same question remains…. what are you giving up?
Closing Costs
Closing costs cover things such as a title search, surveys, and loan payoffs and any other figures or fees required to wrap up the transaction. While buyers will pay the majority of the closing costs a seller can expect to pay anywhere from 1-3% of the final sale price in closing costs — once again, this is NOT a small amount in Hawaii. When you work with a professional buyer such as Oahu Home Buyers to sell your house, the closing costs can be avoided because we pay your closing costs.
Holding Costs
No question, it costs money to own a house (or condo). If the house is on the market for a while, your costs will rapidly accumulate — mortgage payments, insurance, property taxes, maintenance, yard work, perhaps HOA fees, etc. This is double-so if you’ve already moved out and are paying the same at your new home. Selling your house quickly can alleviate a significant amount of these sunk and wasted costs you’ll incur if watching your home sit on the MLS waiting for an interested buyer.
How To Sell It
Sell As-Is
Selling your house as-is could save you a ton of cash as long as you are able to get the property in front of the right buyers. Focus on showing the home’s potential, even including a cost analysis showing an estimate of what the improvements will cost. You’ll want to make sure you’re primarily speaking with investors and cash buyers
List It
A successful listing will require many of the costs listed above. Save money by choosing a full-service agent so there are no surprises. If you choose to sell without making repairs, consider offering a fair credit for buyers to repair and/or renovate as they see fit.
Sell To A Professional Buyer
Working with a professional seller such as our team at Oahu Home Buyers will allow you to sell your house quickly and for a great price. We’ll work with you to make the process as simple as possible, making sure you don’t ever have to spend a dime.