How much does it cost to sell a house?
How much does it cost to sell a house?
10% – 15% of the sale price
Cost of selling a house
The costs of selling a home range from 10% to 15% of the sale price on average. The fees for selling a house typically include 5% to 6% in realtor commissions, 1% to 4% in mandatory closing costs, and 4% to 5% in optional costs for home improvements and moving expenses.
| Typical expenses | Average percentage of sale price* |
|---|---|
| Realtor commission | 5% – 6% |
| Seller’s closing costs (includes taxes and fees) | 1% – 4% |
| Professional staging and moving | 0.5% – 1.0% |
| Home improvements and repairs | 3.5% – 4.0% |
| Mortgage payoff | Varies |
| Total cost of selling a house* | 10% – 15% of sale price |
*Not including mortgage payoff
Real estate commissions
Real estate agent commissions are a major expense when selling a house, typically totaling 5% to 6% of the sale price split between the seller's and buyer's agents. The buyer's agent may receive a slightly lower 2.0% to 2.5% commission since they do not incur costs to market the home.
Selling the home by owner can eliminate seller’s commissions but most buyer's agents still get paid 3% for bringing a buyer to the sale. However, they handle the paperwork and closing to earn their commission. Also, if your agent brings in the buyer, they often reduce the percentage to 5% to handle both sides of the transaction.
Seller’s closing costs
In addition to the realtor commissions, house closing costs range from 1% to 4% of the sale price. These costs are typically mandatory, non-negotiable and include taxes and fees that are detailed in the following table.
| Fee type | Average cost | Description |
|---|---|---|
| Title search | $100 – $500 | The seller may cover the cost of this public records search to confirm legal ownership. |
| Title insurance | $2,500 – $5,000 (0.5% – 1.0% of the sale price) |
In some locations, the seller must cover the insurance to protect the buyer from ownership claim issues like liens, deeds, or other property claims. |
| Escrow (settlement) fees | $350 – $1,000 | These fees paid by the buyer and seller cover the paperwork and distribution of funds to third parties involved in the real estate transaction. |
| Recording fees | $125 – $200 | These fees paid by either the buyer or seller cover the government recording of the property transfer. |
| Property taxes | Varies | The seller pays the prorated portion of the taxes up to the closing date and the buyer pays for the remainder of the year. |
| Property survey cost | $200 – $700 | The seller may cover this cost to verify the property boundaries, title ownership, and to check for zoning violations before closing. |
| Transfer taxes | Varies | Sometimes split with the buyer, these costs cover the tax levied on the sale of real estate. |
| Attorney fees | $500 – $1,000+ | Either the buyer or seller will pay the fee for legal representation during closing. |
| Home appraisal cost | $350 – $600 | Though more commonly paid by the buyer, some sellers elect to have a home appraisal to set their sales price, especially when selling by owner. |
Optional costs
When you sell your home, optional repairs and costs that can add up to 4% to 5% of the sale price. These include necessary repairs, home improvement projects to increase property value and appeal to potential buyers, and professional services to make the move smoother.
Most sellers make at least one home improvement before listing. Common projects include painting, new flooring, new lighting fixtures, or installing new appliances. A real estate professional can help you decide which home improvements are the best investment.
In addition to home improvements, these optional expenses may make selling your home and moving easier:
Staging a home costs $1,500 to $4,000 for the first month, and $150 to $1,200 for each additional month.
Landscaping costs $4 to $12 per square foot to enhance the home’s curb appeal before the sale.
Real estate photography costs $150 to $300 on average when selling by owner. If you're selling through a real estate agent, they typically cover this cost.
Professional movers cost $900 to $2,800 for a local move or $1,300 to $9,500 for a long-distance move.
Mortgage payoff
Another expense many sellers incur at closing is the mortgage payoff. This is the process of paying off the entire remaining balance on a home loan to satisfy the mortgage contract and effectively own the home free and clear without any lien against the property. Some things to know about mortgage payoffs:
A mortgage payoff involves paying the outstanding principal, any accrued interest, and any other fees stipulated in the mortgage contract in one lump sum payment.
Paying off a mortgage early can save on total interest costs compared to paying it off over the full term, but some loans have prepayment penalties.
Lenders may charge processing or administrative fees for handling the payoff, especially if it occurs mid-billing cycle.
After the lender receives the payoff funds, they must release the lien they have on the home and provide a satisfaction of mortgage document, legally terminating their interest in the property.
Communicate with your lender ahead of time to get an accurate written payoff quote and understand any requirements.
How to save on the cost of selling a house
There are several cost-saving strategies to help you pay less when selling your home, including:
Negotiate fees and closing costs: Negotiate with your real estate agent for a lower commission or ask the buyer to cover some closing costs to help reduce expenses.
Opt out of full-service: In a hot seller's market, you may not need a full marketing blitz. Consider cutting out some services to potentially lower your agent's commission.
Keep an eye on your closing date: Align the closing date of your old home with the move into your new one to prevent paying bills for two homes simultaneously.
Avoid offering buyers more than needed: In buyer's markets, be cautious about offering unnecessary perks that could increase your expenses without significantly benefiting the sale.
Research and understand the process: Understanding all aspects of selling a home can help you make informed decisions and potentially save money throughout the process.
Getting estimates from a realtor
When choosing a realtor for your home sale, be sure to partner with a top real estate agent near you. While online tools provide estimates, consulting with a real estate professional can offer a more accurate valuation of your home based on market conditions and comparable sales in the area.
Additionally, look for these qualifications:
State licensure: A real estate agent must hold a valid real estate license to practice in the state where they operate.
Market knowledge: Realtors should have a solid understanding of the local housing market, including property values and market trends.
Understanding of real estate laws: Knowledge of laws governing real estate transactions is crucial to ensure compliance and protect clients' interests.
Sales skills: Realtors act as salespeople but also provide consultative guidance to clients, requiring strong negotiation skills and the ability to build rapport and trust.
Questions to ask a real estate agent
Asking these questions can help you understand the realtor's approach, expertise, and how they can assist you in selling your home effectively:
What are the expenses involved in selling my home?
How do you determine the listing price for a property?
What factors besides comparative analysis impact the listing price?
How much will I be charged for your services?
What kind of guarantees do you offer?
How will you market my home effectively?
How long should I expect the home-selling process to take?
Will I be working with anyone else besides you?
How should we communicate with each other during the selling process?
What should I do to prepare my home for sale?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.