We are local homebuyers in FL, and we buy houses in Pensacola Florida in any condition. When selling your Pensacola home, don’t rush into signing with an agent until you run some numbers and learn about all of your options. There are many costs of listing with an agent, sometimes a direct sell is a more lucrative choice because they offer cash for houses in Florida like what we do here in Take Flight Home Buyers. Educate yourself on all scenarios before you sign a listing agreement that binds you to an agent!
Costs of Listing With an Agent in Pensacola FL
Selling a property in Pensacola, FL can be a daunting task, especially if you are not familiar with the real estate market. Many homeowners choose to hire a real estate agent to help them navigate the process. While hiring an agent can be beneficial, it also comes with its own set of costs that can add up quickly. In this article, we will discuss the various costs associated with listing with an agent in Pensacola, FL, and how you can minimize these costs.
Commissions – 6%+ of the Final Sale Price
The Commission fee is the most significant cost associated with listing with an agent. It is a percentage of the sale price of your property, and it is typically split between the listing agent and the buyer’s agent. In Pensacola, FL, the average commission rate is around 6%, but this can vary depending on the agent and the type of property.
One way to minimize the commission fee is to negotiate with your agent before signing a contract. While some agents may be reluctant to lower their commission, others may be willing to negotiate if you have a high-value property or if you are selling multiple properties.
Another way to reduce the commission fee is to consider listing your property as a “for sale by owner” (FSBO) instead of hiring an agent. While this option requires more work on your part, it can save you thousands of dollars in commission fees.
Marketing Costs – $0 to a Thousand
Another cost that you may incur when listing with an agent is marketing expenses. Marketing costs can include professional photography, staging, advertising, and signage. These costs can add up quickly, and you should discuss them with your agent before signing a contract.
To minimize marketing costs, you should work with your agent to create a marketing plan that focuses on the most effective and cost-efficient strategies. For example, instead of spending thousands of dollars on advertising, you can leverage social media platforms like Facebook and Instagram to promote your property to a wider audience.
You can also consider taking your own photos of your property instead of hiring a professional photographer. While professional photos can make your property look more appealing, taking your own photos can save you hundreds of dollars.
Cleaning – $0 to a Few Hundred
When preparing to sell your house, cleanliness is key. To make your property attractive to potential buyers, it is essential to ensure that it is immaculate at all times. This means that you may need to hire a professional cleaning service to deep clean your home from top to bottom.
Alternatively, if you have the time and energy, you can do it yourself. However, you must keep in mind that open houses, surprise showings, and visits from potential buyers can happen at any time, which means that your home needs to be clean 24/7. If you have a busy schedule, keeping your home in perfect condition may require some outside assistance. The cost of hiring a cleaning service will vary depending on the size of your home and the level of cleaning required. Generally, you can expect to pay around $100 or more per cleaning.
Staging – $0 to a Few Hundred
Maybe your home is already decorated with new hand towels, candles, bright colored throw pillows, and selectively placed houseplants. If so, good for you! For the rest of us, really giving your home that “straight out of a catalog” charm will take a little work. This doesn’t have to cost a ton, there are some great ways to DIY or find deals at a big box store. No matter what you do, make sure you keep your space tidy and pulled together. If interior decorating isn’t your speed, have a friend help, or consult Pinterest. A few small pieces will bring a room together and make it really feel like a home.
Repairs and Improvements – Varies (Can Be Tens of Thousands!)
When you list your property, your agent may suggest making some repairs or improvements to make it more appealing to potential buyers. While these changes can increase the value of your property, they can also be expensive. One of the most common repair that is being required in Pensacola is replacing an “Ivan” roof. Banks and insurance companies are less and less likely to give a buyer a mortgage loan on a roof that is more than 15 years old (and sometimes as low as 10).
To minimize home repair and improvement costs, you should focus on the most cost-effective improvements that can make your property more appealing to buyers. For example, you can repaint your walls or replace your flooring instead of doing a major renovation. You should discuss these costs with your agent and decide which improvements are necessary and which ones you can skip.
You can also consider doing some of the repairs and improvements yourself instead of hiring a contractor. While this option requires more time and effort, it can save you thousands of dollars in labor costs.
Closing Costs – 2-5% of the Final Sale Price
Closing costs are the expenses associated with transferring ownership of the property to the buyer. These costs can include title search fees, attorney fees, transfer taxes, and recording fees. The seller is responsible for paying some of these costs, and they can add up to 2-5% of the sale price of your property.
To minimize closing costs, you should shop around for title companies and attorneys to find the best rates. You can also negotiate with the buyer to split some of the closing costs or include them in the sale price of your property.
Bills While the Home is on the Market – Varies (Can Be Hundreds or Even Thousands!)
Even if you have moved out of your home while it’s on the market, you must keep the utilities connected. The length of time your home takes to sell is uncertain when you list it, and it could be several months before it finds a buyer. You are also responsible for paying property taxes and homeowner’s insurance until the day of closing, regardless of how long your home is on the market. If your home sits on the market for an extended period, these bills can accumulate to a significant amount, causing financial strain.
Opportunity Costs – Priceless
Finally, when you list your property with an agent, you will need to make it available for showings and open houses. This means you will need to vacate the property during these times, which can be inconvenient and disruptive to your daily routine. Additionally, if your property does not sell quickly, you may miss out on other opportunities or have to continue paying for expenses like mortgage payments and property taxes.
To minimize the opportunity cost, you should work with your agent to create a timeline for showings and open houses that is convenient for you.
Sell My House in Pensacola FL
There is an easier way to sell your house in FL that won’t cost you a dime in commissions, doesn’t require any repairs or cleanings, and can be done quickly! A direct sale to reputable Pensacola home buyers like us will ultimately help you keep more money in your 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!