A critical review, being made to us often, mostly on social networks, is linked to the cost of our service. Here too, Casavo has decided to be transparent right from the start, by accurately informing all our potential customers of the costs associated with our selling service.
Because we’re not an agency, and thus we aren’t brokers, we do not perceive a fee, but when we buy the property, we apply a discount on its value. Meaning that, if the value of a property is 100, we will offer a lower sum, equivalent to 8% less. This percentage, representing the cost of our service, may vary from case to case.
We often hear comments like “Why should we sell to you if an agency only takes the 3%?”, so we decided to tell you about all the costs linked to selling a house. If you add up all the costs, the overall expenditure on the sale of your property can reach 10% of its value – without taking into account the investment of time that the process takes.
Let’s analyze one by one the different types of costs, to understand where they come from.
Getting the house ready to be sold: details that make the difference
Each person that wants to sell his house is obviously interested to get the highest price out of it. For this reason, making improvements to your apartment before you list it can be effective. But who would ever invest money before selling? For sure the perspective of making renovation is not appealing. Anyway, is good to know that it is possible to add significant value to your house, without having to make big investments. After all, if anything properly communicated acquires an added value, why shouldn’t be the same for your apartment?
The practice of homestaging, that means working on some details of the house to improve the first impression, comes to the rescue: the buyer focuses his attention on what he sees, it’s harder, in fact, to imagine how the property will be once it’s been renovated. This service is usually offered by professionals or can be done independently: however, it hides a cost related to the purchase of lights, curtains or carpet cleaning. These little improvements can simplify the selling process, by decreeing selling times and discount on the demanded price.
Another thing to take into account is related to the reparation of certain elements of the house. When you get an offer from a buyer, he tends to notice everything that is wrong with the house and consequently lowers his offer. We’re talking about small details: a noisy boiler or a blind that is not working properly. Before the start of the inspections, it would be better to fix everything, if you don’t want to see the value of your property drop. These kinds of jobs can cost quite a lot and are often underestimated. By selling your house to Casavo, though, you can forget about that: we take care of possible work that needs to be done, without any cost for the seller.
After deducting the reparations, additional small jobs can be done to increase the property’s value. For example, it might be important to improve the kitchen: many consider the kitchen to be the most important room of the house, therefore, it is often a decisive element when choosing whether to buy a property or not. It is probably the place of the house we spend most of the time in: a modern, well-planned kitchen can help the visitor to identify himself in that environment. However, buying a new kitchen before selling a house is absolutely a waste of money. Thus, you can think of making small recoveries to give the idea of cleanness and freshness. By painting the walls and cabinets (at least the visible side), your kitchen will have a new image. Adding modern accessories or modern looking ones is another way to increase the value of your house.
Agencies fees: let’s clear things out!
The biggest cost comes from the agent’s fees, which represent on average 6% of the property’s value. In Italy there is no uniform regulation for the fees you pay to the real estate agent. In fact, every agency suggests the fees they want to receive when the mandate of sale is made. It is commonly proposed to the seller to split these fees with the buyer. On average, the fees you will have to pay as seller, amount to 2 to 3% of the final price. The buyer, on average, will pay 3 to 4% of the final price.
Keep in mind though, that the cost of the fees for the buyer mirrors a loss of profit for you. Let’s say a buyer has a budget of 100 for the purchase of a new house. If he doesn’t have to spend 3-4% for costs and fees linked to the purchase, he could pay the new property 100, instead of 96. This results in a loss of earning for the person who’s selling the house! So basically, the seller pays for all the fees.
According to the survey “Tecnoborsa 2018”, more than half of the families who carried out a transaction between 2016 and 2017 relied on a real estate agency. That means that you could hardly avoid this expense.
Papers, taxes and other expenses: undervalued but not insignificant
An additional cost is represented by the process of retrieving all the documentation related to the selling process and taxation. Furthermore, if you decide to involve professional figures to support you during the sale, such as a notary, an architect, a lawyer, they will represent an additional cost.
As we explained in this post, this is the reason why the overall cost can reach 8 to 10% of the property’s value, representing a high value, that the seller usually doesn’t take into account. From this uncertainty, Casavo’s will to make life easier to the person who wants to sell a house was born: by selling your house to Casavo you will no longer have to worry about any of these costs!
Casavo will directly take care of the improvements or the renovation that your property need to undergo, and you will be able to sell without the need to invest money. Casavo again will pay the professional figures that will possibly be needed during the process, such as surveyors or designers. Moreover, the evaluation, key to the selling process, will be paid by Casavo itself, removing an additional cost for the seller. Casavo will also support you for the retrieving of documentation and will take charge of the notary fees.
In view of these services, Casavo’s cost amounts to 8% of your property’s value. As we explained, if you were to sell on the traditional market you may have the same costs you have with Casavo, but it would take over 7 months and with few warranties.
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