The Real Question is : How Much Does It Cost to Sell a House?
Selling your home isn’t just about pocketing the sale price — it comes with its own set of costs that can surprise many sellers. On average, you should plan to spend 10–15% of your home’s sale price on fees, taxes, and services, in addition to paying off your existing mortgage. Here’s what you need to know to prepare for a smooth, profitable sale.
The Biggest Cost: Real Estate Agent Commissions
Agent commissions are often the largest expense when selling a house. Traditionally, this ranges from 5–6% of the sale price and is split between the buyer’s and seller’s agents. Commissions are negotiable, so it’s wise to ask upfront what your agent charges and what services they include — from marketing to negotiations.
Taxes and Fees You’ll Pay at Closing
Property taxes: Typically prorated up to your closing date.
Transfer taxes: A fee charged in some states when ownership changes hands.
Capital gains tax: Applies if your profit exceeds $250K (single) or $500K (married).
HOA dues: If you live in a homeowners association, expect prorated fees or a transfer fee.
These costs vary by location but can quickly add up to thousands.
Title Insurance and Closing Costs
Title insurance ensures there are no disputes about ownership. In some states, the seller pays for the buyer’s policy, averaging about $1,000–$4,500 depending on home value. You’ll also pay escrow, recording, and legal fees. Together, these closing costs usually total 1–2% of the sale price.
Mortgage Payoff: What Sellers Forget
Your mortgage balance isn’t just the number on your last statement — it often includes daily interest, and some loans have prepayment penalties. Contact your lender for the exact payoff figure so there are no surprises at the closing table.
Home Preparation and Repairs
Most sellers spend $5,000+ on cleaning, landscaping, and minor updates to make their homes market-ready. Buyers also typically request repairs after inspections, which could mean additional expenses. Smart, targeted upgrades — like painting or curb appeal fixes — often deliver the best return.
Optional but Strategic: Staging and Warranties
Staging: Professionally staged homes sell faster and for more money. Costs range from $600 to $2,000+ depending on scope.
Home warranties: Offering one can reassure buyers and help close the deal, costing about $600–$1,000.
Professional photos & 3D tours: With over 90% of buyers starting online, high-quality visuals are worth the small investment.
Moving Costs and Temporary Housing
Don’t forget about the cost of actually leaving your home. Local moves average around $1,700, while cross-country moves can cost several times more. If your home closes before you buy your next one, you may need to budget for temporary housing and storage.
Buyer Concessions: Negotiation Costs
In competitive markets, sellers may cover part of the buyer’s closing costs, inspection repairs, or even offer credits. This can range from 1–3% of the home price but may be the key to sealing the deal quickly.
How to Save on Selling Costs
Negotiate commissions or use a discount brokerage.
Sell “as-is” if you want to avoid repair costs.
Consider FSBO (For Sale by Owner), but know you’ll take on marketing and negotiations yourself.
Compare offers from iBuyers or cash buyers for speed and convenience — though usually at a lower sale price.
The Bottom Line for Sellers
Selling a house costs more than most people expect. Between commissions, taxes, and preparation, you’ll likely spend 10–15% of your home’s value. The good news? With the right planning — and by working with a trusted agent — you can reduce costs, maximize profit, and walk away with more money to put toward your next home.
