Hidden (and not-so-hidden) costs of selling a home

Are any of your vendors ready to sell? As a real estate agent, you know all about the hidden and not-so-hidden costs of selling a home. But vendors often underestimate the impact of these costs on their sale.

Especially now that the market has turned and margins are reducing, it’s all-the-more important to ensure that your vendors get the most bang for their buck. So, we put together some helpful information that you can share with your clients, on the costs involved and how we can help cover some of those. And of course, let us know if you (or they) have any questions.

Real estate marketing costs

Are you ready to sell your home? With more and more listings coming to market, and reportedly fewer buyers shopping around, competition among vendors is gaining steam. And that’s where a premium marketing campaign can help you stand out from the crowd.

Depending on your requirements, the package can include anything from professional photos through to videos and virtual walk-throughs. Of course, a targeted marketing plan featuring professional photos comes at a price, but it’s also an ‘investment in visibility’.

According to WiseUp.nz, professional real estate photography packages can cost between $200 and $1,200 depending on how sophisticated the service is. Some photographers, for example, may use drones for aerial stills and videos, to give potential buyers an even more immersive experience.

Looking for inspiration? Check out our article ‘Tried-and-true real estate marketing strategies’.

Home staging costs

Professional home staging is all about highlighting the best features of the property. Home stagers know what makes buyers tick, and how to draw their attention to all the right places.

As we reported in our article ‘Vendor tips: How to find the right home stager’, home staging fees are based on the stager’s experience, as well as the property size and period length. So, it’s not easy to provide a ballpark figure. But generally, as a vendor, you can expect to pay between $1,000 to $5,000 (and more) for a five-week period.

It’s important to stress that penny-pinching may not be a good idea. Low-cost packages may use lower-quality furniture that’s not aligned with your property’s look and feel – with the risk of obtaining the opposite result.

Lastly, a quick note about storage costs: if you need to declutter or remove some items, you may also need to factor in those requirements.

Last-minute repairs

From little fixes through to more comprehensive remedial work, properties often need a final spruce-up before being put up for sale.

Your real estate agent will be there to help you decide what fixes are likely to boost the property’s value. It could be something as little as a fresh coat of paint or getting rid of scratches and dents. Or, it could be repairing something that, as it is now, may get in the way of a profitable sale.

Fixing around the house is more than just a nice-to-have. More often than not, sales-and-purchase agreements are conditional to building reports. And if the builder’s inspection identifies hidden issues, you may need to fix those before the agreed settlement date.

Cleaning costs

Some buyers may add a ‘professional cleaning’ condition to the sales-and-purchase agreement. But even if they don’t, ensuring the property is spotless, clutter-free and welcoming is all part of making it sales-ready. Again, costs vary widely depending on the company, so it’s a good idea to ask for quotes, read plenty of reviews, and if possible, ask family or friends who they would recommend.

Legal costs

Last but not the least, let’s talk about lawyers and conveyancer fees. With so many binding documents to make sense of, it’s a good idea to get professional legal assistance, to navigate the intricacies of the sales process with confidence. Based on the complexity of the transaction and your budget, costs can vary widely – but the potential costs of not getting advice can be a lot higher.

How we can help

Here at Lifestyle Finance, our mission is to help Kiwi vendors make the most of their property opportunities, thanks to our smart finance tools.

Our ‘Advertise Now, Pay Later’ can fund the marketing of your home, and you won’t have to make any repayments for the first 90 days. Plus, if the property needs a revamp ahead of going on sale, our ‘Renovate Now, Pay Later’ package can fund your renovation needs. And what’s more, for 90 days you won’t have to repay any of the principal.

Like to know more about our finance solutions? Please don’t hesitate to contact us.

 

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.