Selling a home isn’t easy — or cheap. There are a number of costs that home sellers can expect to pay when putting their homes on the market.
Some of the costs you need to keep in mind are things like taxes, repairs and renovations, real estate commissions, and closing costs. Here’s what you need to know about the cost of selling your Oklahoma home.
How Much Can I Expect for My Oklahoma Home?
A median home value in Oklahoma is $123,700, and rising. Demand far exceeds supply and it is a very hot seller’s market. Prices have gone up 4.4% over the last year and are expected to go up another 2.5% in the next year
Within every state, real estate prices vary based on location, and Oklahoma is no different. The median home value in Edmond is $203,300, while in Midwest City it’s $89,600.
One of the first steps in selling a home is getting a competitive market analysis (CMA), to ensure your home is priced appropriately. A good CMA will analyze your house’s condition, location, and the timeframe of the sale in your part of the state.
If you’re thinking about selling your house, talk to a local real estate agent. Local realtors are experts in their areas and can help you be certain you’re getting the right listing price for your home.
Some Typical Costs and Fees to Expect When Selling an Oklahoma Home
Real Estate Agent Commissions
Every seller needs to budget for real estate commissions. The commission for both the listing agent and the buyer’s agent generally comes from the seller. Typically each realtor involved gets paid 3%, equalling 6% of the final sale price.
A median home in Broken Arrow is worth $155,800. If you pay a full 6% commission on that median home, you’ll pay $9,348 to the realtors involved in the sale. To maximize your margins, consider partnering with a full-service, low-commission agent, instead.
Learn More: What Is a Low-Commission Real Estate Agent?
Renovations and Repairs
Almost every seller makes at least a few improvements and repairs before putting their house on the market. Whether your home is new or old, there are certainly a few upgrades that will help it sell faster and for more money.
One of the most common repairs is a fresh coat of paint on the walls. Bright, newly painted walls and good lighting make your home look bigger and more inviting. Most sellers pay around $1,000 to have their house painted.
A deep clean of your home is another important thing for all sellers. General cleaning and carpet cleaning will cost around $150 each. Small items like these can add up, but they can also make a lot of difference in the world of home sales.
You should probably expect to pay at least $2,500 on pre-listing improvements and additional repairs requested by the buyer after your home inspection.
Learn More: 6 Low-Cost, High-Value Renovations & Repairs
Another thing that most sellers can benefit from is professional staging. Staging your house properly helps buyers see themselves in your home, which makes them more likely to put in an offer. Stage homes often sell faster and for more money than homes that aren’t staged.
Staging usually costs somewhere between $150 and $600 for the initial design and another $500 to $600 per room in the house per month. This sounds like a lot, but remember that a properly staged home can help you get another $6,000 to $10,000 at the final sale.
Learn More: How Much Does Home Staging Cost? Is It Worth It?
You may have to pay capital gains taxes and transfer taxes when you sell your home, but if you’re selling your principal residence, you’re likely exempt from capital gains tax.
Capital gains are the difference between your selling price and what you’ve spent on the house. To calculate capital gains, add the amount you initially paid for the home to any improvements or remodeling costs and subtract that number from the final sale price. If your capital gains are less than $250,000 (or $500,000 if you’re married and filing jointly), you’ve owned and lived in the home for at least two years, and you didn’t exclude capital gains taxes on the sale of another property in the last two years, you won’t need to pay capital gains taxes.
Real estate transfer tax is another common cost involved in real estate transactions. The transfer tax is the cost of legally transferring the title of a property from one owner to another. In Oklahoma, the transfer tax, or documentary stamp tax, is customarily paid by the seller. However, Oklahoma law allows either the buyer or seller to pay the tax, so the parties can come to their own agreement during contract negotiations.
In Oklahoma, the documentary stamps are $0.75 per $500 (or 0.15%) of the sales price of the property. For median value home in Oklahoma worth $123,700, the transfer tax would be $185.55.
Learn More: The Tax Implications of Selling a House: What to Expect in April
Buyer and seller alike will have costs associated with closing on a home. The buyer will have a few smaller fees to pay, but the seller will pay the bulk of the costs. Closing costs are often part of the negotiation process.
Generally, closing costs are between 2% and 4% of the final sale price. For an Owasso home worth $154,000, closing costs will probably be in the range of $3,080 to $6,160. For this reason, it’s important to work with an agent who is an expert negotiator to minimize your responsibility for these additional costs.
Learn More: Who Pays Closing Costs on a House?
3 Tips to Maximize Profits on the Sale of Your Oklahoma Home
1. Time Your Sale to Get Top Dollar for Your Oklahoma Home
The time of year you choose to sell your home can have a big impact on your profit margin. Like in most of the country, the best time to sell in Oklahoma is the spring, specifically May. Homes listed in May sell faster and for more money than homes sold the rest of the year. Start getting your home ready to list in late winter and early spring so you’re ready for this hot selling season.
Learn More: When Is the Best Time to Sell a Home in Oklahoma
2. Negotiate Like a Pro
Be sure to know your limits before you start negotiating. How much money can you spend on repairs and renovations? How low are you willing to go on price? How much can you afford to pay in closing costs?
Decide your priorities as early in the process as possible and discuss them with your realtor to help you get to everything you want from your home sale.
3. Work With a Flat-Fee or Low-Commission Real Estate Agent
To save even more money, work with a Clever Partner Agent. A Partner Agent will sell your home for a flat fee of $3,000 if your final sale prices was under $350,000 (1% commission if the sales price was more than that). This can mean significant dollars in your pocket at the end of the home selling journey.
For example, if you’re selling your Yukon home for $157,700, you would pay a traditional agent $9,462. However, our Partner Agents charge a flat fee of $3,000 plus a 3% commission for the buyer’s realtor, coming to a grand total of $7,731. That’s a savings of $1,731 that you can put towards closing costs, another down payment, or moving costs.
Clever Partner Agents not only save you money, they also give you the same high-quality service and support as a traditional real estate agent.
Get in touch with one of our experts today to learn more and get connected to a top-rated, local Partner Agent for a no-obligation consultation.