How Much Does It Really Cost to Sell My Home?

How Much Does It Really Cost to Sell My Home?

Hey there, homeowners and future sellers! Are you thinking about putting your house on the market but wondering about the costs involved? It's a great question and one that deserves a detailed answer. Selling a home involves several expenses that many sellers don't anticipate. Let's break them down.

Real Estate Agent Fees

One of the most significant costs in selling a home is the real estate agent's commission. This is typically around 5-6% of the sale price. While it might seem steep, remember that agents bring expertise in pricing, marketing, negotiation, and closing - all crucial for a successful sale. But keep in mind, all commissions are negotiable - there's no set minimum or maximum.

Home Repairs and Improvements

Before listing, you may need to invest in repairs or improvements to make your home more appealing. These costs can vary widely depending on the condition of your home. Small updates can go a long way in boosting your home’s value. Your real estate agent will help you determine the most cost effective upgrades and repairs, maximizing your return with minimum investment. 

Staging Costs

Staging your home can help it sell faster and for a higher price. Professional staging might cost a few hundred to a few thousand dollars, but it helps potential buyers envision themselves in the space. Typically, real estate agents will factor this cost into their marketing dollars. If not, always feel free to hire your own staging company.

Home Inspection

Though usually the buyer's responsibility, some sellers opt for a pre-sale inspection to uncover any hidden problems. This can cost a few hundred dollars but can save you from surprises after you're already deep into a deal. We recommend budgeting $1000 for repairs. 

Closing Costs

Sellers typically pay some closing costs, which can include title insurance, transfer taxes, and attorney fees. These can amount to 1-3% of the sale price.

Capital Gains Tax

If your home has significantly appreciated in value, you might be subject to capital gains tax. However, many sellers qualify for an exclusion if the home was their primary residence.

Moving Costs

Finally, don’t forget about moving costs. Whether you're hiring movers or doing it yourself, moving isn’t free and should be included in your budget.

Final Thoughts

So, how much does it cost to sell your home? While it varies, you can expect to spend a certain percentage of your home’s sale price. Being aware of these costs upfront can help you budget correctly and avoid any surprises. But on average, closing costs and real estate professional fees combined will be somewhere between 7-10% of the sales price. That's a good place to start for planning considerations.

Remember, every home and situation is unique. It's always a good idea to consult with a real estate professional to get a more accurate estimate tailored to your specific case.

Happy selling, and here's to a smooth and successful home sale journey!