How Much Does It Cost to Sell a House?

Selling a home represents one of the largest financial transactions most people will ever make. While sellers naturally focus on their potential sale price, many are surprised to learn that the actual cost of selling a house typically ranges from 9% to 15% of the final sale price. For a home selling at $400,000, that translates to $36,000 to $60,000 in expenses that come directly out of your proceeds. Understanding these costs before you list can help you set realistic expectations, price strategically, and maximize what you actually take home from the sale.

Understanding the True Cost to Sell Your Home

When calculating the cost to sell a house, most homeowners significantly underestimate the total expenses involved. The money you receive at closing is not your sale price minus your mortgage balance. Between that number and your actual check, a substantial portion goes toward commissions, fees, taxes, and various closing costs.

According to industry data, the average national total real estate commission rate stands at 5.44% as of mid-2025, with seller's agents typically earning around 2.77% and buyer's agents averaging 2.67%. For a home priced at the median value of approximately $367,711, that amounts to just over $20,000 in agent fees alone. Add in closing costs, potential repairs, staging, and moving expenses, and sellers routinely spend $30,000 to $50,000 or more to complete a sale.

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Real Estate Agent Commissions

Agent commissions typically represent the largest expense when selling a home. Following the landmark NAR settlement in August 2024, the real estate industry saw significant changes in how commissions are structured and disclosed. However, despite initial expectations that commissions would decrease, data shows that average rates have remained relatively stable and even increased slightly in many markets.

How Commission Structures Work Today

Prior to the 2024 settlement, sellers almost always paid both their own agent's commission and the buyer's agent commission, typically totaling 5% to 6% of the sale price. Today, sellers are no longer required to offer compensation to buyer's agents, and commission offers can no longer be advertised on Multiple Listing Services (MLS). Despite these changes, most sellers continue to offer buyer agent compensation as a strategic decision to attract more qualified buyers.

Current commission rates typically break down as follows: seller's agents average around 2.5% to 3% of the sale price, while buyer's agents average 2.4% to 2.67%. For a $400,000 home, this means you might pay $10,000 to $12,000 to your listing agent and potentially another $9,600 to $10,680 if you choose to cover the buyer's agent fee, totaling approximately $20,000 to $22,000 in commission costs alone.

Why Working with an Agent Is Worth the Investment

While commission costs may seem substantial, data consistently shows that homes sold with agent representation sell for significantly more than For Sale By Owner (FSBO) properties. According to the National Association of Realtors, the typical agent-assisted sale in recent years sold for a median of approximately $435,000, compared to $380,000 for FSBO transactions. That $55,000 difference far exceeds what most sellers pay in commissions.

Top-performing agents bring expertise in pricing strategy, marketing, negotiation, and transaction management that directly impacts your bottom line. They understand local market conditions, know how to position your home competitively, and have the experience to navigate complex negotiations. Learn more about how to choose a realtor who will maximize your sale price.

Seller Closing Costs Explained

Beyond commissions, sellers face various closing costs that typically total 1% to 3% of the sale price. These fees cover the administrative, legal, and governmental requirements needed to transfer property ownership. While some costs are fixed, others vary significantly based on your location and specific transaction details.

Common Seller Closing Costs

Title Insurance and Title Search

In most transactions, sellers pay for the buyer's owner's title insurance policy, which protects the new owner against any title defects or claims. This one-time premium typically costs 0.5% to 1% of the sale price. The title search, which verifies clear ownership and identifies any liens, usually costs $200 to $400 and is often included in closing fees.

Transfer Taxes

Transfer taxes, also called deed taxes or documentary stamps, are fees charged by state and local governments when property changes hands. Rates vary dramatically by location. Some states like Texas have no transfer tax, while others like Delaware charge up to 4% when combined with local taxes. Most states fall somewhere between 0.1% and 1% of the sale price.

Escrow and Settlement Fees

Escrow companies or settlement agents handle the closing process, holding funds and documents until all conditions are met. These fees typically run 0.5% to 1% of the sale price, often split between buyer and seller. In some regions, attorneys handle closings and charge flat fees ranging from $500 to $1,500.

Prorated Property Taxes and HOA Fees

At closing, property taxes and any HOA dues are prorated between buyer and seller based on the closing date. If you have prepaid taxes beyond the closing date, you may receive a credit. Conversely, if taxes are due, you will pay your share through closing.

Pre-Sale Preparation Costs

Before your home even hits the market, you may need to invest in repairs, updates, and staging to maximize its appeal and sale price. While these costs are technically optional, skipping them often results in a lower sale price or extended time on market.

Home Repairs and Improvements

The amount you spend on pre-sale repairs depends heavily on your home's condition. Minor cosmetic updates might cost a few thousand dollars, while addressing major issues like roof repairs, HVAC replacement, or foundation problems can run into tens of thousands. Data suggests that average home repair costs before selling range from $5,000 to $15,000.

Not all improvements deliver equal returns. Focus on updates that buyers prioritize: fresh neutral paint, updated fixtures, repaired flooring, and addressing any obvious maintenance issues. Major renovations rarely return their full cost at resale. For guidance on which improvements offer the best value, read about home renovations that give the best ROI.

Pre-Listing Home Inspection

While buyers typically order their own inspection, some sellers opt for a pre-listing inspection costing $300 to $500. This proactive approach lets you identify and address issues before they become negotiation points or deal-breakers. Knowing your home's condition also helps you price accurately and disclose properly.

Home Staging

Professional staging helps buyers envision themselves in your space and can significantly impact sale price and time on market. Staging costs vary widely based on home size and whether you rent furniture. Basic consultations start around $300 to $500, while full staging with furniture rental typically costs $1,500 to $4,000 for a three-month period. Staged homes often sell faster and for higher prices, making this investment worthwhile in competitive markets.

Cost Comparison: What You Can Expect to Pay

Understanding how costs scale with home value helps you plan your budget. The following comparison illustrates typical selling costs across different price points.

Note that actual costs vary significantly by location. States with high transfer taxes (like New York or Delaware) will see higher totals, while states with no transfer tax (like Texas) will see lower overall costs. Your specific situation, including necessary repairs and whether you offer buyer agent compensation, will also impact your final numbers.

Mortgage Payoff Considerations

If you have a mortgage on your property, the remaining balance will be paid from your sale proceeds at closing. While this is technically settling a debt rather than a cost of selling, it directly impacts your net proceeds and deserves careful consideration.

Understanding Your Payoff Amount

Your mortgage payoff amount is not simply your current balance. It includes any accrued interest through the closing date and may include other fees. Request a payoff quote from your lender before listing to understand exactly what you owe. Payoff quotes are typically valid for 10 to 30 days and include per-diem interest charges if closing occurs after the quote date.

Prepayment Penalties

Some mortgages, particularly those originated before 2014 or certain non-conventional loans, may include prepayment penalties. These fees, typically 2% to 4% of the remaining balance, are charged for paying off your loan early. Check your original loan documents or contact your lender to determine if any prepayment penalties apply to your situation.

What If You Owe More Than Your Home Is Worth?

If your mortgage balance exceeds your home's current value, you are considered underwater or upside-down on your mortgage. Selling in this situation means you would need to bring money to closing to cover the difference. Options in this scenario include waiting until you build more equity, exploring a short sale with lender approval, or considering alternatives to selling. Consult with a financial advisor and real estate professional before making decisions about an underwater property.

Tax Implications When Selling

Federal and state taxes can significantly impact your net proceeds, though many sellers qualify for substantial exemptions. Understanding the tax landscape helps you plan effectively and avoid surprises.

Capital Gains Tax Exclusion

The federal tax code provides a generous exemption for home sale profits. Single filers can exclude up to $250,000 in gains, while married couples filing jointly can exclude up to $500,000. To qualify, you must have owned and used the home as your primary residence for at least two of the five years before the sale.

State Capital Gains Taxes

Some states impose their own capital gains taxes on home sales, which can add to your tax burden if your profit exceeds the federal exclusion. Tax rates and rules vary by state, so consult with a tax professional familiar with your state's requirements.

Strategies to Reduce Your Selling Costs

While many selling costs are non-negotiable, there are legitimate strategies to minimize your expenses without compromising your sale outcome.

Negotiate Commission Rates

Agent commissions are always negotiable. About 37% of recent home sellers reported negotiating or attempting to negotiate their agent's commission. Success often depends on market conditions, your home's price point, and the agent's policies. Higher-priced homes often command lower percentage rates since agents still earn substantial fees at reduced percentages.

Shop Around for Services

Title companies, escrow services, and attorneys often have different fee structures. Getting quotes from multiple providers can save hundreds of dollars on closing costs. Your agent can often recommend cost-effective options while ensuring quality service.

Handle What You Can Yourself

DIY repairs, painting, deep cleaning, and landscaping can save significant money on preparation costs. However, be honest about your skills. Poorly executed DIY work can hurt your sale more than the cost of hiring professionals.

Time Your Sale Strategically

Spring and early summer typically see the highest buyer demand and strongest prices. Selling during peak season may allow you to command higher offers, offsetting some of your selling costs. However, market timing matters less than pricing correctly and presenting your home well.

Frequently Asked Questions