What Is the Average Cost of Selling a House?

Marko Leon
August 23, 2021

So you’ve decided to sell your house in order to embark on a new adventure, and you’re curious, “What is the cost of selling a house?”

Some sellers may be unaware of the amount of money they will invest in their home sale before the closing table slaps them in the face. But that will not be the case for you! To smash your home-sale goals and win money, create a budget for selling expenses. We’ll show you the average costs of selling a house so you can batten down the hatches and sail through real estate’s stormy seas. Are you prepared? All is in place. Let’s go!

What is the Cost of Selling a House?

The total cost of selling a home is approximately 15% of the purchase price, which includes agent commissions, home upgrades, closing costs, and moving fees. So, if you sell a home for $250,000, you will have to pay about $37,000 in sale costs.

On the whole, that might seem to be a lot. However, bear in mind that the cost of selling a house varies depending on the seller. In reality, depending on your circumstances, you might be able to save certain sale costs.

Here’s an example of a home-selling budget:

Home sale price: $250,000Seller’s costPercentage of selling a house price
Agent commissions$15,0006%
Major repairs$11,2505%
Closing costs$7,5003%
Home staging$1,100<1%
Moving costs$1,100<1%
Home inspection$350<1%
Total selling costs$36,30015%

The figures in this budget are just educated guesses of what a seller would receive when selling a $250,000 home. in brief, let’s unpack each category to get a better understanding of how much these budget products would cost in your situation.

Selling a House Commision for Agents

Selling a House

Okay, so when you sell a home, one of the major costs will almost certainly be the commission fee. In brief, a percentage of your profits goes to the real estate agents who assisted you in the transaction.

The regular fee is usually 6% of the selling price of your property, divided equally between the seller’s and buyer’s agents (maybe 3 percent each).

So, if you sell a $250,000 home, the real estate agents will receive $15,000 (or $7,500 each).

Is it worthwhile to pay for an agent?

Yes, indeed! This is why: Real estate agents who feed, sleep and breathe real estate set realistic goals so you can feel secure in the sale process. Hence, they assist you in preparing your home for buyers and provide you with a tried and tested marketing strategy to sell your home on your timetable.

Agents will also help you make a lot of money by having bargaining clout. In 2019, for example, sellers who partnered with an agent sold their homes for a median of $280,000. That is $80,000 more than those who did not use an agent.

Real estate agents who feed, sleep and breathe real estate set the right goals so you can feel secure in the sale process. Agents will also help you make a lot of money by having bargaining clout.

Home Examination

A home inspection, which costs around $280–400, may reveal issues with plumbing, electrical equipment, HVAC, the roof, or even the foundation of a building.

That way, any problems you discover will be resolved before you attempt to sell the property, or they will factor into the selling price.

Typically, as a customer is best to pay for a home inspection in order to prevent from being tricked into a “money-trap purchase”. However, if your budget for an inspection before selling your house, you will have the opportunity to make repairs ahead of time. Home repairs would not slow down the closing process or trigger frantic buyers to change their original offer this way.

A home inspection, which costs around $280–400, may reveal issues with plumbing, electrical equipment, HVAC, the roof, or even the foundation of a building.

That way, any problems you discover can be solved before you attempt to sell the property, or they most probably add them into the selling price.

Significant Repairs

Major home repairs range in price from $4,000 to $18,500.

This covers any modifications that are needed as a result of your home inspection. You actually don’t have to think about this if your house is brand new. However, if Pilgrims build your house, it might need some repairs.

Last year, 73% of sellers made at least one change before selling the house.

They completed three home improvement projects on average. This includes landscaping, upgrading bathrooms and kitchens, installing carpet or flooring, exterior painting, and redecorating.

Staging Your Home

The cost of staging a home ranges from $450 to $1,800.12. The goal of staging is to turn your home into an inviting space that customers want to call their own. That means more money for you on a faster timeline.

Hiring a staging business, replacing cabinets, and adding a fresh coat of paint are all examples of staging costs. Keep in mind that your real estate agent can cover these costs as part of their marketing services.

Closing Fees

According to Realtor.com, closing costs normally amount to 1–3 percent of the home’s selling price.

Closing costs are payments for services that aid in the finalization of a real estate transaction. Closing costs for sellers typically include paying for an agent, title insurance firm, title transfer, and taxes.

Moreover, sellers could try to sweeten the deal by paying some of the buyer’s closing costs as well. This is referred to as a seller concession. Last year, an offer to pay some or all of the buyer’s closing costs was included in 20% of seller concessions.

Selling A House Moving Fees

Moving out of your home could cost between $600 and $1,700.15. Moving costs can be managed in a variety of ways, including—you guessed it!—renting a moving truck or hiring a moving company.

Mortgage Remaining Balance

If you have a mortgage on your house, you will still have to pay the outstanding loan balance, which should be offset by the proceeds from the sale.

Assume you’ve been paying off your mortgage for ten years and have a balance of $80,000 leftover. Assume you sell your house for $250,000. You use $37,000 of the sale proceeds to fund selling costs, and the remaining $80,000 is used to pay off the mortgage. That is $133,000, which is a nice down payment for your next home!

If you are upside down or underwater on your mortgage (meaning the loan balance is greater than the current value of your home), now is probably not the time to sell. In case you did sell, you wouldn’t be able to pay off your debt because you’d have to cover all of the sale costs.

Although, if you’re underwater, hang in there and keep paying down your mortgage — let the value of your home rise until you can gain enough from the sale to pay off your mortgage!

How Can I Lower the Cost of Selling My House?

Okay, charge up your power tools and put on your protection goggles because the first way to save money on home sale costs is to do home projects yourself—DIY-style! On the contrary, if you are skilled in landscaping, carpentry, or painting, you will be able to save money on home repairs and staging.

It is also simple to save money on moving costs. Begin by purging unnecessary objects and selling items that can be replaced after the move—fewer items to move equals lower moving costs. Request free packing boxes from department stores, and avoid the expense of hiring a moving company by enlisting the assistance of friends. In fact, be sure to express your gratitude with extra-large pizzas!

If you’re relocating for work, you might ask your employer for a relocation plan, which includes financial support for items like agent commissions, closing costs, and moving expenses. Evidently, in 2019, nearly 90% of workers received some kind of compensation for their relocation costs, thanks to their employers.

Are you prepared to sell your home?

If you’re ready to put the calculator away and start selling, contact a local real estate agent. Try our Endorsed Local Providers (ELP) reviews for a quick and easy way to find the top-performing agent in your market. We only suggest reputable agents who make it their personal task to assist you in exceeding your real estate objectives.

Related articles