Want to sell your house in Hawaii? Make sure you run your numbers so you know exactly what to expect and what you’ll be walking away with at the end of the day! A traditional sale can cost quite a tidy sum whereas a direct sale to a company that buys houses won’t usually cost you anything. In today’s blog post, we discuss the costs and timeframe you can expect when selling your house in Hawaii! Here we go….
Most home sellers will sign a listing agreement with a [maret_city] real estate agent without first considering how the process will play out – after all, that’s how it’s always done, right? Well, usually but not always. Before signing an agreement or deciding what method to sell your house in Hawaii, you should try to estimate how long it will take and what your total costs will be. You should also consider multiple selling methods and how they will affect the overall sales process and your personal situation if that’s a concern. Keep reading below to learn more about running the numbers for selling your house in Hawaii.
Repair Costs
The trouble with repair costs is that they can tend to snowball….. and quickly. A leaky pipe that seems like a quick fix may actually be the source of major water damage to the home – next thing you know, you’re paying a contractor to rip out drywall and rebuild a shower. Many homeowners find that once they fix one thing, several more repairs will follow – it just seems to be the law of home improvement. When putting your house on the MLS in Hawaii, you’ll want to put your best foot forward. What does this really mean? It means attending to any repairs you can now while also being prepared for the buyer to request more after they’ve paid for the home inspection — yes, this can be costly. Potential buyers will often try to negotiate after the inspection, forcing the seller to cover even more expenses even if they seem rather ticky-tack. Some sellers will pay for an inspection on their own before listing so they know exactly what they are getting into – that’s not a bad call but will cost you $300-$500 in most cases.
Preparation Costs
A lot can go into preparing your house for sale on the MLS in Hawaii. You’ll probably want to remove all your personal items. As painful as that may be to take down family photos going back generations, new home shoppers will want to view your property as a potential clean slate for them to customize as they wish should they decide to buy it. Along those same lines, you may want to professionally stage the house, making it decoratively pop to get more attention. Staging can cost $1000-$4000 depending on the size of your home — it’s not a small expense but it can help in many cases.
Marketing Costs
If you decide to list your house with a real estate agent in Hawaii, make sure you know which types of marketing will be used to sell your home. Some agents all full-service, pulling out all the bells and whistles, while others will simply put your house on the MLS with their low-grade cellphone photos (and no photography skills), just hoping for a buyer to come along. Many homeowners find themselves paying for premium listings, professional photography, and other marketing materials. Be clear upfront what is — and what is not — your responsibility.
Holding Costs
Do you know how much it costs to own your home month after month? Not only are you likely paying a mortgage each month, but you should also account for the utility bills, repairs costs, property taxes, insurance policy, and the usual maintenance expenses. Ask any real estate investor and they will tell you that the longer you own a house, the more it is costing you. To put a quick stop to your ongoing holding costs right away, consider a direct sale of your house in Hawaii to us. Selling in days, not months, has the potential to save you thousands (or tens?) of dollars that you would have otherwise spent on keeping the home in your name.
Agent Commissions and Costs
Your agent’s commission will be somewhere around 6% of your final sale price. Let’s say your house sells for $750k. You will immediately be out about $45k plus any other fees or reimbursements due to your agent. When you include this hefty amount with all the other costs and fees you will likely face, you may find that a direct sale will be a better way for you to sell, especially since you’re eliminating the future holding costs discussed in the above paragraph.
Closing Costs
Closing costs for a property seller will usually run about 1% of the final sale price, depending on the price of your home. So again, if your house sells for $750k, you will likely be spending about another $5,000 or so once you reach the closing table. With a direct sale to Oahu Home Buyers, you won’t have to worry about the closing costs. We will handle everything so you can sell your house fast and move on — yes, we will pay your closing costs.
When deciding whether to list your house with a Hawaii real estate agent or sell it on your own, it’s important to truly understand all the various pieces that come together and all the financial ins and outs. Don’t just rely on your estimated final sale price to tell you which method is better. You must factor in all of the costs you will face, too. Putting your house on the MLS can be expensive. However, for some houses, it does make the most sense – if you have all the time in the world and really need to shoot for the moon. For other properties, a direct sale will ultimately help the seller keep more money in their pocket while saving time and energy. It’s important to look at your property and your situation to determine which selling method will be the best for you – and then let us know!