If you plan to sell your home in the greater DFW area, there are quite a few factors to consider. Here are some things to keep in mind before you put out that For Sale sign.
To iBuy or Not
iBuyers, also known as instant buyers, are companies that buy homes through cash deals. With one, a seller can bypass most of the steps of the traditional home-selling process. But pay for that privilege. The overall iBuyer cost is usually around 4% to 6% higher than you would pay with traditional real estate agents.
In Texas, sellers pay an average of 6% of the home’s sale price in agent commissions, which covers both the selling agent and the buying agent. If you are willing to pay about 12% for a fast, no-hassle deal, i-buying can be a good way to go.
Traditional vs. Discount Real Estate Agents
With a full-service realtor, you get the peace of mind that you’re working with professionals who can handle the trickier parts of selling a home. And hold your hand for the simple stuff. Taking about 6% off your net proceeds.
And discount realtors in Texas? They’re out there. They cost less than full-service realtors because sellers pay less for the listing fee. A discount broker will often list a home for about 1% of the sale price. But sellers still have to pay 2.5% to 3% for the buyer’s agent.
Do full-service agents do more than discount agents? That’s kind of case-by-case. Top discounters, including Redfin and Clever, claim to provide the same level of service as traditional agents. But all discount agents don’t offer services such as home staging and multiple open houses that are common with full-service agents.
The No Real Estate Agent Route
With for sale by owner (FSBO), the seller performs tasks normally done by a real estate agent: pricing, showings, and negotiating. Due diligence and a heap of homework are recommended here. Where do you list the home? There are lots of FSBO websites with lots of advice on how to handle home sales.
Closing Costs to Consider
Beyond real estate agent’s commissions, home-selling costs you should factor in:
- Title insurance. In Texas, that’s usually from 0.5% to 1% of the purchase price.
- Escrow fees. Texans often negotiate escrow fees and agree to split the burden between seller and buyer. On average, this cost is 1% to 2% of the sale price.
- Seller concessions. Redfin reports that about half of the home sellers in Dallas agree to pay for needed repairs the buyer uncovers.
If you’re selling one home, there’s a good chance you’re buying another one. We can help you there. The loan experts at the Decker Group are ready with a range of financing options for your next home. Contact us online or call us at (972) 591-3097.
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