If you’re like many people, you already know that the cost of selling a home varies depending on several factors. Your home’s location, market conditions, price and the services you choose to use will make a big impact on your bottom line after you find a buyer. This guide explains how much it costs to sell a home.
How Much Does it Really Cost to Sell a Home?
When you sell your home, you need to factor in:
- Closing costs
- Repairs and improvements
- Moving expenses
Here’s a closer look at each.
Cost #1 of Selling a Home: Commissions
Real estate agent commissions make up a significant part of the cost of selling a home. Usually, agents make between five and six percent of a home’s selling price. Usually, the commission is split between the seller’s agent and the buyer’s agent, and the broker typically gets a cut of each. For example, if your home sells for $1 million, closing costs will likely be in the $60,000 range.
Usually, the seller pays commissions for both agents representing both parties in the transaction. Commissions are separate than the rest of the closing costs.
Cost #2 of Selling a Home: Closing Costs
Closing costs are the fees and charges that the buyer and seller need to pay to close the transaction. Often, closing costs for the seller include things like transfer taxes, title insurance, escrow fees and attorney fees. Usually, sellers can expect to pay between 1% and 3% of their home’s selling price in closing costs, although some of these fees are negotiable and may vary. Sometimes, buyers ask sellers to pay their closing costs for them, but this doesn’t always happen. And as a seller, you have the right to say no if a buyer asks you to pay their closing costs.
Cost #3 of Selling a Home: Repairs and Improvements
Regardless of how well you’ve taken care of your home during the time you’ve owned it, there’s a good chance that you need to make some repairs or improvements so buyers fall in love with your space. There’s no way to predict how much you’ll spend on repairs and improvements here, so the best thing you can do is get an estimate from a licensed contractor to find out how much everything you need will cost.
Your real estate agent may also tell you that making a few upgrades can help you sell your home faster and for more money. Your cost will depend on what those upgrades are.
Cost #4 of Selling a Home: Staging
It’s entirely possible to stage your home yourself, without spending a dime. However, many people choose to hire a professional home stager because a good staging job can help you sell your home faster and at a higher price. The cost of home staging varies depending on your home’s size and the level of staging necessary. Your real estate agent can put you in touch with a local stager who can give you a quote if this is something you’re interested in doing.
Cost #5 of Selling a Home: Inspections
Some home sellers hire inspectors before they put their homes on the market. That way, they know exactly what they need to repair or replace before a buyer’s inspector comes along. The advantage to getting this done before listing a home for sale can be pretty significant, particularly when you consider that if a buyer’s inspector discovers flaws in your home, the buyer can use them as negotiation points to lower the price.
Cost #6 of Selling a Home: Moving Expenses
After you sell your home, you’ll have to incur moving expenses to get to your next place. Whether or not you hire movers makes a big impact on how much you spend.
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