When it comes to selling a home, the first factor to consider is location, particularly for larger markets such as Texas. Home to two of the country’s most largest real estate hubs, Houston and Dallas-Fort Worth (DFW). Although both cities boast a strong real estate market, the actual selling costs of a home can vary depending on different variables.
It is important to understand how house-selling costs differ between Houston and Dallas-Fort Worth for home sellers who expect to sell and market their homes and investors looking for long-term opportunities and good returns.
So, let’s explore the core cost components of selling a home and how the two cities compare to each other to gain a deeper understanding.
Key Components to Consider Before Selling a Home
Before diving into the main selling costs, having a clear idea about the key factors before putting your property on the market is essential.
Preparation of the Property
First impression is everything. Therefore, the initial step to follow prior to selling a house is to beautify its curb appeal and present it as attractive as possible to the buyer. Make the exterior look good by cleaning, painting, and repairing any defects of the house.
De-personalize the house, invest in a professional to help stage the house by redesigning it to make it look more attractive. They sell quicker and command a better price than when initially listed.
Repairs and Renovation
Ensure that all visible and hidden defects of a home are detected and fixed before the home is put up for sale. Invest an extra little grand in renovating and upgrading the house. A renovated property holds a greater selling value and attracts more buyers, as many homebuyers prefer a rather modern and upgraded home.
Market Research
It is important to research previous similar sales, regional economic market conditions, and the surrounding area demand before establishing the price. These avoid overpricing or underpricing within a fluctuating market, creating maximum interest and security.
Hire Professionals
Having experts like a real estate agent assist you in setting the ideal listing price on your property. They contribute their market knowledge, negotiating power, and presentation skills that appeal to the buyers and ultimately get you a higher price and quicker sale.
Closing Costs
Closing costs include insurance, escrow charges, HOA fees, property taxes, home inspection fees, and legal fees.
Houston vs Dallas-Fort Worth: Regional Home Selling Cost Comparison
Now that we’ve addressed the important considerations, let’s take a look at a side-by-side home selling cost comparison in Houston and Dallas-Fort Worth.
Houston
Houston, which is Texas’s biggest city, has a huge, dynamic housing market. The market price of a home in Houston varies based on numerous factors. The value of selling a home in Houston depends on many things,
Real Estate Agent Commission:
The real estate agent commission in Houston is typically about 5% to 6% of the actual sale value of the house. Both the buyer and seller split the commission.
In Houston, excellent marketing is essential in order to put your house in the spotlight amidst this saturated housing market and to impress prospective clients.
Marketing and Promotion Strategies:
In Houston, excellent marketing is essential in order to put your house in the spotlight in this saturated housing market and to impress prospective clients.
The majority of sellers have professional photographs taken, virtual tours, and 3D walkthroughs. These elements will cost about 0.5% to 1% of the home’s price, depending on the house and marketing package.
Repairs and Renovations:
In response to a competitive housing market in Houston, repairs and renovations within the house are necessary. Repairs and upgrades usually cost $2,000 to $7,400 for minor repairs and replacements to prepare the house better.
Closing Costs:
Closing costs for a real estate property include title insurance, transfer taxes, property taxes, escrow fees, and HOA fees, which cost 2% to 5% of the selling price.
Dallas-Fort Worth
The Dallas-Fort Worth metropolitan area has a huge inventory of homes for sale. The cost of selling a home in DFW varies depending on different factors, much like Houston, however, slightly different.
Real Estate Agent Commission:
The commission agents receive in the DFW area is similar to Houston, 5% to 6% of the selling price of the house. This commission is also divided between the seller and buyer.
Marketing and Promotion Strategies:
Due to the competitive DFW real estate market, a sale requires good marketing. It takes $250 to $5000 to advertise and market your home in DFW. A good advertisement attracts more attention, quicker sales, and better offers for the property.
Repairs and Renovation:
Cost of repairs and renovations in DFW generally fall in the same price range as Houston, which is anywhere from $1,000 to $10,000, depending on the scale of the upgrades.
Closing Costs:
DFW closing costs are also the same in the 2% to 5% of the selling price range, as in Houston. But DFW, being a larger and more diversified metropolitan area, there are certain places where closing costs are relatively lower or higher.
Comparison of Market-Specific Selling Expenses: Where do the Two Cities Differ?
Although both Dallas-Fort Worth (DFW) and Houston have similar percentage-based selling fees, such as realtor’s commission ( 5% to 6%) and closing costs ( 2% to 5%), total costs vary depending on regional trends, market conditions, and buyer demand, as well as any extra costs.
DFW requires higher preparation, marketing, and renovation costs because of its fast-paced, competitive market and lower inventory of homes. So, sellers are required to spend more to get noticed. Sellers invest around $250 to $5000 in marketing and staging the home. Repairs and upgrades cost $1,000 to $10,000.
DFW – Median home selling price- $400,000 ($205 per sqft)
In contrast, Houston’s slightly higher inventory provides more room for price flexibility and less marketing cost. Houston sellers invest between $2,000 and $7,400 in repairs and renovations of homes. Staging and marketing costs between $1,500 and $2,500.
Houston – Median home selling price – $322,766 ($176 per sqft)
Houston and Dallas-Fort Worth homes for sale rely on similar factors and have the same trend. But one always dominates the other, the difference being in the market dynamics and trends of either location. Keeping this in mind, the sellers need to carefully navigate through these factors to reach the best possible result
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