When selling your house in Knoxville, hiring a real estate agent might seem like the obvious choice to get top dollar. However, what many homeowners don’t realize is that there are hidden costs associated with working with an agent. These expenses can quickly add up, affecting your profits and making the process more stressful than expected. Here, we’ll uncover five hidden costs of working with a Knoxville real estate agent and why selling your home directly to a cash buyer could be a smarter option.

1. Repair and Renovation Costs

Before you can list your home on the market, your agent may recommend that you make certain repairs or renovations to attract buyers. These improvements, whether minor or significant, can cost you thousands of dollars before your house is even shown to potential buyers.

Typical repair and renovation expenses include:

Cosmetic Fixes: Small updates like fresh paint, new lighting fixtures, or landscaping can add up to hundreds or even thousands of dollars.
Major Repairs: Issues like a damaged roof, plumbing problems, or an outdated kitchen can require large, costly renovations. Homeowners often need to make these repairs to ensure their house is competitive in the Knoxville market.

Unfortunately, your agent might not fully disclose just how expensive these repairs can be. By contrast, selling your house directly to a cash buyer can save you from these costs, as cash buyers typically purchase homes in as-is condition, no repairs needed.

2. Staging and Photography Fees

Once your home is ready to list, staging and professional photography are often necessary to make your property stand out. Staging involves temporarily furnishing your home to appeal to buyers, and professional photos ensure your house looks its best online.

Here’s what these services can cost:

Staging: Depending on the size of your home, staging can cost anywhere from $500 to $2,500. This involves renting furniture and decor for several weeks or even months.
Professional Photography: High-quality real estate photography costs between $200 and $500. In some cases, you may also need virtual tours or drone photography to compete in today’s market.

These costs are typically out-of-pocket for the seller and can add up quickly. Cash buyers don’t require staging or professional photos, as they purchase homes in any condition, which can help you save time and money.

3. Agent Commissions

The most significant cost associated with working with a real estate agent is their commission. In Knoxville, standard commissions range from 5-6% of the final sale price. This commission is split between the buyer’s and seller’s agents but is ultimately paid by the seller.

How much could this cost you?

On a $300,000 home, a 6% commission amounts to $18,000.

While agents handle marketing, showings, and paperwork, the commission can eat into your profits. When you sell directly to a cash buyer, there are no agent fees or commissions, allowing you to keep more of the money from your home’s sale.

4. Holding Costs

One often-overlooked expense is the holding cost of owning a home while it’s on the market. This includes mortgage payments, utilities, property taxes, and maintenance costs, all of which add up over time. If your home sits on the market for months, these costs can significantly reduce your profits.

Common holding costs include:

Mortgage Payments: Continuing to pay your mortgage while your home is listed can be a financial burden, especially if you’ve already moved out.
Utilities and Maintenance: Even if you’re not living in the house, you’ll still need to pay for utilities and upkeep to keep the home in good condition for showings.

Selling your home quickly is the best way to avoid these holding costs. Cash buyers can typically close in as little as seven days, saving you from months of additional expenses.

5. Closing Costs

Even after finding a buyer, sellers are still responsible for a portion of the closing costs. These costs typically include title insurance, escrow fees, and transfer taxes. While buyers often cover some of these fees, sellers are still on the hook for a significant portion.

Examples of closing costs include:

Title Insurance: Providing title insurance to the buyer can cost several thousand dollars.
Escrow Fees: Sellers are responsible for escrow fees, which range from 1-2% of the sale price.

On a $300,000 home, closing costs can range from $3,000 to $6,000, cutting into your final profit. When you sell directly to a cash buyer, they often cover all closing costs, making the sale more profitable for you.

Why Selling to a Cash Buyer Could Be a Better Option

While working with a real estate agent can be helpful, the hidden costs can quickly diminish your profits. From repair costs and staging fees to agent commissions and holding costs, selling your Knoxville home through an agent isn’t always the best financial choice.

By selling directly to East Tennessee Home Buyers LLC, you can avoid many of these expenses. We purchase homes as-is, cover closing costs, and don’t charge commission fees, allowing you to keep more of your money. Plus, we close quickly, so you don’t have to worry about holding costs.

If you’re looking to sell your house fast and avoid the hidden costs of working with a real estate agent, contact East Tennessee Home Buyers LLC today for a fair, no-obligation cash offer.