The True Cost to Sell a House: What Every Homeowner Should Know

When you're ready to sell your home, the price tag isn’t just about what the buyer pays—it’s also about what you spend to make the sale happen. While many sellers focus on maximizing their profit, it's just as important to understand the costs involved in the process. Here’s a breakdown of the most common expenses you should plan for when selling your home.

1. Real Estate Agent Commissions

This is often the largest cost. Traditionally, real estate agents charge around 5% to 6% of the home’s sale price, which is usually split between the buyer’s agent and the seller’s agent. For a $400,000 home, that could mean up to $24,000 in commission fees.

2. Home Repairs and Improvements

Before listing, many homeowners invest in repairs or upgrades to boost appeal and asking price. Costs vary widely, from a few hundred dollars for minor fixes to several thousand for major improvements like new roofing or kitchen updates. Even staging can cost $500 to $2,000 or more.

3. Closing Costs

Sellers often cover a portion of the closing costs, which can include:

• Title insurance

• Transfer taxes

• Escrow fees

• Attorney fees (in some states)

These typically range from 1% to 3% of the sale price.

4. Home Inspection Repairs or Concessions

Buyers almost always request a home inspection. If issues are found, they may ask you to make repairs or offer concessions. These costs can vary significantly depending on what the inspection uncovers.

5. Mortgage Payoff

Don’t forget—if you still owe money on your mortgage, the payoff amount (including any prepayment penalties) will be deducted from your proceeds at closing.

6. Capital Gains Tax (in some cases)

Most homeowners are exempt from paying capital gains tax if they’ve lived in the home for at least two of the last five years. However, if your profit exceeds the IRS threshold ($250,000 for individuals, $500,000 for couples), you may owe taxes.

7. Moving Costs

The cost to move can range from $1,000 to $5,000+, depending on the distance and amount of stuff. Factor in professional movers, truck rental, packing materials, and temporary storage if needed.

Total Cost: What to Expect

In general, homeowners can expect to pay 8% to 10% of the home’s sale price in total selling costs. For a $400,000 home, that could mean $32,000 to $40,000 in expenses.

Final Thoughts

Selling a home isn’t just about cashing a check—it’s a transaction with many moving parts and expenses. By understanding the true cost of selling, you’ll be in a better position to price your home strategically, plan ahead, and walk away with a satisfying profit.

Looking to sell your current home, reach out today and let at guide you through the process!