Every year, millions of homes exchange hands through the real estate market. And while it’s obvious that buying a home costs a great deal of money, it’s easy to forget that selling a home can be on the expensive side as well.
If you’re preparing to put your home on the market, it’s essential that you’re well aware of the cost to sell a house. The last thing you want to do is be surprised by selling expenses and lose money on your home sale because of it.
To learn the home selling fees you need to budget for and the average price of each, just keep reading!
How Much Does It Cost to Sell a House?
Before we dive into the details, let’s go ahead and get the average overall cost to sell a house out of the way. The average seller spends almost 15% of the sale price during the selling process. So if your home goes on the market at $300,000, you could pay about $45,000 in home selling fees when it’s all said and done.
Now, this sounds like a lot, right? Well, keep in mind that every sale is different. There are certain selling expenses that might not apply to you, and depending on the condition of your home, you might find that it’s far less expensive to sell than you thought.
This is why it’s important to talk about each expense individually. You’ll have a better idea of what to expect for your specific situation.
A typical home-selling budget includes the following: commissions, repairs, closing costs, home staging, inspections, and moving costs. Let’s break them down.
Real Estate Commissions
For most sellers, this is going to be the largest expense. Realtors are a must in a home sale as they know how to sell a house in the least time for the most money. But their knowledge and expertise come at a price.
In a home sale, you have a buyer’s agent and a seller’s agent, and each agent receives 3% of the sale price at closing. This means 6% of your home sale price will go to the realtors involved in the process. If you sold your home for $200,000, for example, each realtor would receive $6,000 at closing, making your total expense $12,000.
A home inspection itself isn’t all that expensive—a typical inspector will charge around $350 for their services. During their inspection, they’ll take note of any issues with the electrical systems, plumbing, roof, HVAC, foundation, etc.
This is where costs begin to differ. If your home is in peak condition, you’re in the clear! But if you have problems, they’ll need to be fixed before the sale or accounted for in the price of your home. This brings us to the next item in your budget.
The majority of sellers will make at least one repair before selling their home, and repairs don’t have to cost a fortune. For example, some common fixes include landscaping the yard and redecorating, neither of which will break the bank.
It’s when you need a new roof or HVAC system that things begin to get pricey. Depending on your home’s condition, you can spend anywhere from virtually nothing to almost $20,000 on repairs.
Sometimes, however, homes are in such bad condition that making the repairs doesn’t make sense. If you find yourself in such a situation, don’t worry. There are companies that can help sell your house fast, regardless of the condition.
Home staging is completely optional. However, it can mean selling your home for more money in less time, so it’s usually worth the cost.
It’s up to you, but if you do choose to stage your home, you can expect to spend $500-2000, depending on your needs and the size of your home. This cost includes things such as hiring the staging company, professional cleaners, furniture rentals, lighting changes, and new paint.
One of the last things you need to budget for when selling your house is the closing costs. These are fees for services rendered to help close the deal on the sale, including an attorney, title insurance company, and other fees and taxes.
In some sales, the buyers will cover some or all of the seller’s closing expenses to improve their offer, but you shouldn’t expect that. Sellers typically pay between 1-3% of their home’s sale price in closing costs.
Finally, you need to budget for moving expenses. Your moving costs might be a few hundred dollars or a few thousand, depending on the distance you’re moving and the method you’re using.
Hiring professional movers, for instance, will cost more than going the DIY route and moving everything yourself. Likewise, moving across town is much less expensive than moving across the country.
You can keep your moving costs to a minimum by using secondhand supplies (boxes from your local grocery store, t-shirts instead of packing paper, etc.) and forgoing movers.
Know the Cost to Sell a House Before Putting Your Home on the Market
Putting your house up for sale can be tough, don’t make it harder on yourself by going into the process without a game plan.
Every home comes with a different set of needs and expenses, including yours. The numbers listed here won’t fit your situation perfectly but make an excellent guideline. By making a budget and planning for the cost to sell a house in advance, you can come away with more money and less stress.
Looking for more tips and tricks for getting the most out of the sale of your home? Be sure to check out our blog!