How much does it cost to sell a house?

If you’re thinking about selling your house, you’re likely thinking about how much money you’ll make from the sale. However, you don’t get to keep all the cash when you sell your most valuable asset — some of it goes toward a variety of expenses, including taxes and closing costs.

But how much does it cost to sell a house, exactly? The answer depends on the home’s sale price, where you’re located and what you manage to negotiate with the buyer. The costs can include real estate agent and attorney fees, title-related fees, taxes and all the other little administrative expenses that go into sealing a deal. If you’re paying off a mortgage, your lender will probably have a few charges for you, too. Being prepared can help ensure you don’t get an unpleasant surprise at the closing table.

Costs of selling a home

Here’s are some of the typical costs home sellers can expect:

Real estate commissions

If you work with a real estate agent, your agent’s commission will likely be the biggest fee you pay. A listing agent’s fee is typically somewhere between 2.5 and 3 percent of the home’s sale price. So, if you sell your house for $400,000, say, you could end up paying your agent $12,000 in commission. However, you may be able to negotiate a lower commission, especially if the sale price is relatively high.

Heads up: While it has long been the case that sellers pay the fees for both agents involved in a transaction, that is about to change due to a recent lawsuit settlement by the National Association of Realtors. Starting in August 2024, buyers may need to compensate their agents directly — but it will depend on the details of each individual deal. So you as the seller may, or may not, be on the hook to pay your buyer’s agent’s fee as well.

Seller’s closing costs

In a real estate transaction, many closing costs are the buyer’s responsibility. But there are closing costs for sellers as well. Some of the most common include title insurance, recording and settlement fees, and prorated property taxes up until closing day. You’ll likely also pay fees for things like escrow and wire transfers. Additionally, if you have hired a real estate attorney, the legal fees will be due at closing. Don’t be surprised if you are asked to foot the bill for some of the buyer’s costs, too, especially as the market shifts and buyers gain more traction. You aren’t required to agree, but this is a normal part of negotiations.

Mortgage payoff

Your existing mortgage doesn’t magically disappear when you transfer ownership of the property: You have to pay off any remaining balance before that transfer can occur. You’ll probably have to add prorated accrued interest to the total balance, and there might be an additional fee if your mortgage carries a prepayment penalty (check your loan documents or contact your lender to find out).

Moving costs

When you sell your place, you’ll have to move all your stuff to your next place. Paying for pro movers will set you back between $878 and $2,555, with the average moving price being $1,699, according to HomeAdvisor. However, that price tag can be a lot higher if you’re moving long-distance.

Taxes

Here are three common tax implications to consider:

• Property taxes: Property taxes are often paid in advance. You may need to pay the prorated share of property tax up to the closing date, with the money placed in escrow. However, if you already paid them past your closing date, you might be in for a partial rebate.
• Transfer taxes: Many states levy a real estate transfer tax, which is a tax on transferring the property’s ownership. Amounts vary based on where you live, but they’re typically a percentage of the sale price (usually less than 1 percent).
• Capital gains taxes: If you make a sizable profit on your home sale, you may trigger the federal capital gains tax. It depends on the dollar amount of the profit, whether you file on your own or jointly with your spouse, how long you lived there and whether it was your primary residence. If you’ve owned the home for a very long time, give some extra thought to this piece of the puzzle. For example, if you bought the home 35 years ago for $200,000 and it’s now worth over $1 million (not out of the question in certain parts of the country), your sale could mean a big tax hit.

Optional fees when selling a home

While some expenses are mandatory, like taxes, others are optional. Here are some things you might choose to do to improve your home’s appeal before you list it, all of which will incur extra expense.

Home repairs and improvements

Before you sell, you might be tempted to undertake a renovation project in the hopes that it will increase your home’s value. Consult your real estate agent first about whether the cost will be worth it.

“One of the most common mistakes I see from sellers is spending money on the wrong improvements before getting a Realtor involved,” says Charly Marggraf, an agent with Compass in Minnesota. “Often, a seller will hold certain improvements in a higher regard than the general buying public. If they are making improvements in order to sell, they definitely need to have a conversation with a professional before they spend their money.”

Home inspection

In addition to talking with your agent, it can be wise to consult a professional home inspector. A pre-listing inspection will likely cost a few hundred dollars, and it will fill you in on any major problems before a potential buyer sees them. For example, if a home inspector finds a leak in your bathroom, you can proactively address the problem and remove any possibility of a buyer asking you to lower the price to repair it.

Curb appeal and staging

In real estate, a lot of buyers judge a book by its cover. That means that curb appeal is essential to get those buyers to come on in. Even small, affordable projects, like sprucing up the landscaping or adding a few flowerpots, can make a difference.

You might also consider staging the interior of your home to make it more welcoming. The cost to stage a home ranges widely, depending on the size of the home, whether you’re just reorganizing or renting furniture and more, but an appealingly staged home can make a meaningful difference to buyers.

Cost to sell a house: A rundown

Every property is different, so you’ll need to carefully consider what will impact the math on selling your house. To give you an idea of how this breaks down, let’s consider a property purchased for $350,000 four years ago. You made a down payment of 10 percent, $35,000, so your initial loan was for $315,000. Since then, you’ve managed to pay down the balance to $290,000. In the meantime, thanks to a surging real estate market, the property will sell for $450,000. But how much will really go into your bank account?

In this scenario, your total costs might range from around $326,777 to $345,222. That leaves you with net proceeds from that $450,000 sale ranging from $104,778 to $123,223. Either way, it’s a relatively nice payday that you can put toward a down payment on your next place.

Comparing costs in different states

Your location plays a major role in how much it costs to sell your house. As an example, let’s compare some of the costs of selling a home in California and Texas.

Reducing the cost of selling a house

If you want to pay less to sell your house, you have a few options:

• Sell it as-is: When you sell your house as-is, you’re telling prospective buyers that you aren’t going to budge on repairs and concessions. This means you won’t have to pay any money to fix the cracks in the floorboards or repair the dented garage door — however, as-is listings can turn off some buyers.
• Sell it yourself: The “for sale by owner” route cuts the commission fee for a listing agent, so you’ll save up to 3 percent. You may still need to pay the buyer’s agent’s fee, though, and be ready to do a lot of work.
• Sell it with a discount service: There are low-commission and flat-fee agents whose services are more affordable than a traditional agent. Be mindful of the adage “you get what you pay for,” though: Do your research to determine whether your listing will still be a priority.
• Sell to an iBuyer or cash homebuyer: These companies move fast, letting you speed to the closing table, and they typically buy in as-is condition, meaning you won’t have to spend on repairs or staging. But, while you’ll get your money quickly, you aren’t likely to get as much as you would with a traditional market sale.

Next steps

Now that you have an idea of how much it costs to sell a house, it’s time to find a local agent who knows your market well and can help guide you to a successful — and lucrative — sale. Set up interviews with several candidates to get a sense of their marketing and sales strategy. Remember: You’re paying them out of your proceeds, so you’re the boss. Ask plenty of questions to find the right person for the job.

FAQs

• How do you calculate the proceeds from selling a house?

  Add up the costs you expect to pay to get the deal done, including real estate commission fees, home preparation fees, taxes and all the other items you’ll need to pay for at closing. Subtract that total from your list price to get a ballpark estimate of how much money you’ll make from the deal if you sell for full price.

• What costs can vary the greatest from state to state for sellers?

  Transfer taxes tend to be one of the biggest variables for sellers. Some states don’t have them at all, whereas in some states they can be very steep. In New York, for example, the transfer tax rate is $2 for every $500 in value — sell a home for $450,000 and you’re looking at $1,800 in transfer taxes. In California, where the rate is just $1.10 for every $1,000 in value, the bill for a $450,000 sale would be a mere $495. And Texas charges no transfer tax.