Understanding the True Cost of Selling Your Home
If you’re thinking about selling your home, you’re probably wondering how much it will cost. The total expenses can vary based on several factors, including the offer you accept, whether you assist with the buyer’s closing costs, any repairs you choose to make, and more.
To give you a better idea of what to expect, let’s explore the typical costs involved in selling a home and how you can prepare for them.
Your Home’s Equity Can Offset Selling Costs
The good news is that most homeowners today have built up significant equity. This means that when you sell, you’re likely to see considerable financial gains—potentially enough to cover your selling expenses and even put some funds toward your next home. Chances are, you’ve accumulated equity as well, making the costs of selling more manageable.
Now, let’s break down some of these costs so you can see where you might save and where it’s worth investing a little extra.
Closing Costs and Agent Commissions
Closing costs are fees paid at the end of the transaction to finalize the sale and transfer ownership. As a seller, you’ll have your own closing costs, and you may also choose to cover part of the buyer’s expenses as a concession.
According to U.S. News Real Estate:
“Closing costs are fees that are paid to finalize the transaction and transfer ownership of the home to the buyer. Sellers can expect to pay 2% to 4% of the home’s sale price in fees and taxes, along with agent commissions.”
Taxes vary by state, and real estate agent commissions are typically agreed upon in advance. However, if you’ve already made payments toward property taxes or mortgage escrow, you might receive a credit at closing to help offset some of these costs.
Pre-Listing Inspections and Repairs
Some sellers opt for a pre-listing home inspection to uncover potential issues before buyers conduct their own inspections. This allows you to address necessary repairs early, which can help make your home more appealing and prevent last-minute negotiations.
If you skip a pre-listing inspection, your real estate agent can still offer valuable guidance on minor updates—such as fresh paint, cosmetic fixes, and other improvements—that will make your home more attractive to buyers.
Home Staging
As housing inventory rises, sellers are looking for ways to make their homes stand out. Home staging is one way to enhance your property’s appeal, whether through renting furniture for an empty home or adding decor to create a welcoming atmosphere. Some staging can even be done virtually after photos are taken.
According to Bankrate:
“Home sellers typically spend between $782 and $2,817 on home staging, though costs can vary widely.”
If you decide to forgo staging, your agent can still offer expert advice on simple steps—like decluttering, rearranging furniture, and depersonalizing spaces—to help your home shine.
Why a Real Estate Agent Is Worth the Investment
If you’re looking to cut costs, you can skip optional steps like staging or a pre-listing inspection. However, one place you shouldn’t cut corners is working with a real estate professional.
A skilled agent provides strategic pricing, expert negotiation, and tailored marketing to ensure your home attracts the right buyers. Their guidance can help maximize your sale price, ultimately putting more money in your pocket and making the selling process smoother.
The Bottom Line
Looking for a better understanding of what to expect when selling your home? Connect with a knowledgeable local real estate agent who can offer expert guidance specific to your market and help you navigate the process with confidence.