If you’re considering selling your house, you’re likely curious about the potential costs. Here’s a breakdown of some key expenses involved in selling your home that you should be prepared for (refer to the graph below):
Here’s something to keep those costs in perspective: most homeowners today have built up substantial equity in their homes, which means they’re likely to see significant profits when they sell—and you probably will too. This equity can help offset your selling costs, and you might even have enough left over to contribute toward the purchase of your next home.
Closing Costs and Commission
These are the fees you’ll pay at closing to cover different parts of the sale. You’ll have your own closing costs, and you might also offer to cover some of the buyer’s as a concession. As explained by U.S. News Real Estate:
“Closing costs are fees that are paid to finalize the transaction and transfer ownership of the home to the buyer . . . Sellers can expect to pay 2% to 4% of the sale price of the home in fees and taxes on top of the agent commission. Based on the national median home sale price, this means that closing costs in 2023 for sellers are about $7,740 to $15,480. . .”
Taxes will vary by state, and agent commissions depend on what you agree upon beforehand. Keep in mind, the figures in the chart above are just examples and not exact amounts. Additionally, if you’ve been paying toward property taxes, mortgage escrow, or similar expenses through your current mortgage payments, you may receive a credit at closing, which could help offset some of your selling costs.
Pre-Listing Inspection and Repairs
Some sellers choose to have a pre-listing inspection, which can highlight potential issues that might come up during the buyer’s inspection. These are often the items a buyer may request a credit or concession for later on. By addressing any repairs upfront, you can prepare your home to make a great impression right from the start.
If you prefer to skip the pre-listing inspection, your agent can still guide you. They can offer advice on paint colors, minor cosmetic repairs, what buyers are looking for, and whether addressing any additional items is worthwhile. This ensures you’re focusing on improvements that are most likely to give you a strong return on your investment.
Home Staging
As inventory increases, you might want to take extra steps to ensure your home stands out. Staging is an optional strategy to enhance your home’s presentation, which may involve renting furniture for an empty house or adding artwork to brighten up the space. Some staging can even be done virtually after photos are taken. But how much does it typically cost? According to Bankrate:
“Home sellers typically pay somewhere between $782 and $2,817 in home staging costs . . . but the price tag can vary widely.”
If you’d rather skip staging, you can rely on your agent’s guidance for optimizing your home’s appearance.
Why Leaning on an Agent Is Key
If you’re looking to reduce your costs, you have several options. However, be cautious about where you make cuts. While you might be able to forgo staging or a pre-listing inspection, both of which are optional, selling without a professional can be a risky move.
An agent is your primary expert throughout the entire transaction. They provide tailored advice at every stage, including guidance on staging your home and which repairs to prioritize. This support can help you avoid the costs of hiring an outside stager or paying for a pre-listing inspection.
However, that’s not the only way your agent adds value. They will also develop customized marketing and pricing strategies that showcase your home’s best features and any improvements you’ve made to prepare it for sale. This approach can ultimately help your house sell for a higher price.
Bottom Line
Looking for a clearer understanding of what to expect when selling your house? Let’s talk and go through the process together.
