Hey everyone, welcome back to my channel, I am Ledeana Strand, I am a realtor in Orland Park. If this is your first time to my channel, and you want to learn everything about working, eating, sleeping, living playing, Make sure you tap that subscribe button and click the little bell so you’re notified every time I do a new video. I get calls, emails, texts, every single day, I’m helping them, and I absolutely love it. People, if you’re thinking about moving, relocating here to the Orland Park area, make sure you give me a call, shoot me a text, or send me an email, However you want to get ahold of me. I’ve got your back when moving to the Orland Park Area.
So, I get this question all the time, what is it going to cost to sell my home? Assuming that you were going to hire a real estate agent? These are the typical expenses that you’re going to incur. Number one, you’re typically going to pay the commission to the real estate agents involved in the transaction. You hire an agent and you agree to pay them X percentage of the sales price of the house when the buyer comes along. If they are represented by a different agent, your agents brokerage pays that person the other half of the commission. Now, I’ve done a whole other video about where the commission goes.
If you’re interested, click that right up there, but just know that we do not keep the whole thing ourselves. We are splitting it with the other agent. We are splitting it with our brokerage. We are paying all of the marketing expenses, so don’t go thinking that we’re all millionaires cause that’s not really how it works.
Number two, you will have to pay the property taxes for the time that you lived in the house. After the property changes hands, the buyer will pay that. If you’ve already paid your property taxes for the whole year, then from the date of your closing to the end of the fiscal year, you’re going to actually get a credit back, because you’ve already paid those property taxes and the buyer should be paying them so you’ll get the money back
#3. You will have the real estate excise tax, which is dependent on the price of your home, but normally ranges from 1.1% to 1.28 % of the sales price of the home. Again, it can go up from there depending on the price of the home.
In the Orland Park area, it’s very common that buyers ask you to pay their closing costs or at least a portion of it. We have a lot of first time buyers and nobody puts 20% down anymore. I mean people don’t have $100,000 just sitting in the bank waiting to buy a house as a general rule. So, they may ask you, Hey, can you chip in $3000 towards my closing costs? And depending on what the market is, whether it is a buyers market, or where we are currently at, at the recording of this video, we are in a very strong sellers market. So, right now, here locally, buyers are finding it a challenge to get their closing costs paid, and I did another video a while back on the hidden costs of buying a home, you can click right up here to check it out, where I explain closing costs.
Now, if you decide to sell your house, for sale by owner, you will not be paying the real estate agent’s commission. Instead, you’re going to be paying for all of the marketing of your home. Just sticking a for sale by owner sign in your front yard is probably not going to get the job done. Typically, the people that buy for sale by owners are looking for a great deal, so they’re going to come and offer you far less than the actual market value of your home.
As a typical rule, you’re going to be paying for the photographer, for the video, for the drone photography, for all advertising. You’re going to have to put a nice sign in the yard. You’re going to have to show the property every time somebody calls you to make an appointment. You will have to deal with all the negotiations, forms, etc. So, the money that you save in the commission, you’re going to be incurring a lot of additional costs in marketing and in time where it’s going to be all on you. You don’t have an agent who’s doing all this stuff for you.
So now you know how much it costs to sell the house, but do you know what your home is valued at? Do you know what your market value is? It’s not enough to just say, Oh, the house down the street sold for blah, blah, blah, because half the time that number is not really accurate.
Your neighbor might tell you, Oh, I sold it for 300,000 they actually sold it for 285, I’m just saying sometimes people have the tendency to exaggerate just a little bit. So, if you’d like to find out what your home is worth because you’re thinking of selling in the next six months or so, give me a call, or shoot me a text, I would be happy to do a free, no obligation home valuation analysis for you so that you can really sit down and say, okay, if I sold, how much money could I expect to make? Because that’s a big factor in deciding is now the right time to sell or should I wait a year or two?