How Much Does It Cost to Sell a House? Don’t Overlook These Common Fees
If you’re planning to put your house on the market, you may be wondering how much is my home worth? But your property’s sale price isn’t the only factor to consider before you stick a “for sale” sign in front of your home.
Expenses can add up quickly, from commissions, closing costs, as well as preparatory updates and buyer’s requested repairs. Understanding these costs upfront can help maximize your profit and avoid last-minute surprises. Whether you’re upgrading to a bigger space, downsizing, or relocating, knowing what to expect can make the selling process smoother and more financially rewarding.
Agent Commissions
Typically, home sellers are responsible for paying commissions for the listing agent and the buyer’s agent. On average, real estate commissions run 5-6% of a home’s sale price, with the money typically split equally between the seller and buyer agents. Real estate commissions aren’t set in stone and are negotiable.
Pre-Sale Home Repairs
Many homes—especially older ones—need some updating before they go on the market to get top dollar. And today, buyers have high expectations: most house hunters won't consider a home that isn't move-in-ready. While pre-sale home repair expenses can vary widely, depending on the age of the property, its condition, and other factors, sellers who make repairs before listing their home spend an average of $14,163, according to Realtor.com. Painting the interior and/or exterior of the home, swapping out light fixtures, or updating flooring/carpet are the most common updates to help a home show better. In some cases, having a pre-listing inspection is also a good idea. In many cases, roof and HVAC repairs made at this stage help the transaction run smoothly once you’re under contract.
Staging
Staging your home—where you declutter and decorate your house to appeal to the masses—can help your property sell faster and for more money. This is often as easy as rearranging or getting rid of furniture to make the home appear more open and less cluttered. Remove items that are not to scale for the room and put things away. If items like shoes or pantry items are in plain view, it will appear to potential buyers as if the home does not have enough storage.
Closing Costs
In addition to real estate commissions, sellers typically pay closing costs of about 1% of the sale price to cover title and escrow fees, transfer taxes, recording fees, and any outstanding property taxes or HOA fees.
Moving Expenses
Many people do not budget for moving expenses and supplies. If you're using a professional mover, make sure to get binding estimates when you obtain quotes so that you know exactly what the move is going to cost you. Planning to move yourself? These are the typical costs for moving supplies:
Moving boxes: $1 to $10 per box, depending on size
Packing tape: $2 to $4 per roll
Furniture pads: $8 each
Packing paper: $10 per 10-pound box
Bubble wrap: $20 per box
Foam packing peanuts: $5 per bag
(you can also check OfferUp or Facebook Marketplace for used moving supplies at a much cheaper cost than buying new)
Rental trucks typically cost $150 for a small local move to over $3,000 for a big long-distance move, according to Move.org. That doesn’t include gas, insurance, and towing equipment, such as a trailer or tow dolly.
Selling a home comes with its fair share of costs, but careful planning can help you keep more money in your pocket. By understanding the expenses involved, you can make informed decisions that maximize your profit.
From the initial planning through final closing, TeamHarryRealtors will talk you through and walk with you every step of the way. Our primary goal for our selling clients is to make the process as smooth and seamless as possible, while maximizing your profit. If you are thinking about selling your home, but not sure if it’s the right decision or timing, we’re happy to talk to you about the process so you can make the most informed decision.
Thanks to Kiplinger Magazine for the inspiration for this article.