Selling your home is exciting, but it also comes with a price tag that often surprises people. Many focus on the commission, but that’s only one piece of the puzzle. From repairs to closing costs, the total can add up quickly.
If you know what to expect, you’ll make smarter decisions and avoid last-minute stress throughout the selling process.
Real Estate Agent Commissions
Commissions usually run 5% to 6% of the sale price. On a USD$400,000 home, that’s about USD$20,000 in fees. It’s easy to see why many homeowners feel discouraged by how much profit they stand to lose. Some even try selling on their own, but that often means more work, slower offers, and a greater risk of leaving money on the table.
While commissions feel like the biggest hit, they’re only part of the picture. The full cost of selling a house includes staging, repairs, legal fees, and closing costs. Managing all of this can feel overwhelming, and that’s where a REALTOR® becomes invaluable. Their experience helps you focus on what’s worth investing in, cut unnecessary expenses, and present your home in the best light.
In many cases, their guidance leads to a higher sale price, making the fee a smart investment rather than a setback.
Repairs and Renovations
Before you list your home, you’ll likely need to invest in some touch-ups. Small repairs like fixing leaks or updating fixtures can make a strong impression on buyers. Even a fresh coat of paint can make rooms feel brighter and more inviting without breaking the bank.
Larger renovations, like a full kitchen upgrade, often don’t bring a high return. It’s easy to overspend, thinking buyers will pay more, but that isn’t always the case. Focus on cost-effective changes that brighten the space and improve curb appeal without draining your wallet.
Home Staging and Photography
First impressions matter, which is why staging is so important. Professional staging highlights your home’s best features and makes it easier for buyers to picture themselves living there. Staging costs vary depending on your home’s size and market, ranging from a few hundred to a few thousand dollars.
Don’t forget photography. Most buyers start their search online, so high-quality photos are a must. Professional real estate photographers charge a few hundred dollars, and it’s usually money well spent. If your budget is tight, you can stage certain rooms yourself or rent a few key pieces to freshen the look.
Closing Costs
Closing costs often catch sellers off guard. They include fees like title insurance, escrow, transfer taxes, and attorney services. Altogether, they usually total 1% to 3% of the sale price. On a USD$400,000 home, that could mean another USD$4,000 to USD$12,000 deducted from your proceeds.
Some of these fees are negotiable, while others are set by lenders or local regulations. For example, attorney fees and title services may vary depending on who you choose to work with, while transfer taxes are fixed by your state or county. Asking for a detailed estimate early in the process can help you prepare instead of being surprised at the closing table.
By factoring in these expenses ahead of time, you’ll have a clearer picture of your net profit and can make better decisions about pricing and budgeting for the sale.
Mortgage Payoff and Prepayment Penalties
If you still owe money on your mortgage, part of your sale proceeds will go straight toward paying off the balance. You’ll want to contact your lender early to get a payoff statement. This shows you the exact amount, including any interest owed until the closing date.
Some lenders also charge prepayment penalties if you pay off the loan early. These fees vary, so it’s important to ask upfront. The last thing you want is to be surprised by a penalty that eats into your profit.
Moving Expenses
Once the sale is final, you’ll need to move your belongings. Costs here can range widely depending on distance, the amount you’re moving, and whether you hire professionals. Local moves might only cost a few hundred dollars, while cross-country relocations can run into the thousands.
You can save by packing yourself, moving during off-peak times, or even renting a truck if you don’t mind the heavy lifting. Just make sure to plan ahead, since moving expenses often get overlooked when calculating your total selling expenses.
Capital Gains Tax (If Applicable)
Not everyone pays capital gains tax when selling a home, but it’s something to keep in mind. If you’ve lived in the home for at least two of the past five years, you can often exclude up to USD$250,000 of profit if you’re single or USD$500,000 if you’re married filing jointly.
If your gains exceed those limits, or if you haven’t met the residency requirement, you may owe taxes. This is where speaking with a tax professional can save you from surprises and help you plan your finances.
Additional Hidden Costs
Beyond the main categories, there are smaller expenses that still matter. You’ll keep paying utility bills until the sale closes. If you live in a neighborhood with a homeowners association (HOA), you may owe fees or even special assessments.
Other costs can include home warranties for buyers, professional cleaning, or storage if you need to move out before the closing date. These may seem minor, but together they can add up quickly.
The Bottom Line
The cost of selling a house extends well beyond commissions. Repairs, staging, closing fees, and moving expenses all affect your final proceeds. Understanding these costs upfront gives you a clearer view of what you’ll walk away with.
Expert guidance can help you spend wisely, avoid unnecessary setbacks, and position your home for the best possible sale. With the right approach, selling becomes less stressful and more rewarding.
