If you're thinking about selling your home, you're likely wondering, "How much will it cost?" The answer depends on several factors, including the offer you accept, whether you contribute to the buyer’s closing costs, how many repairs you take on, and more.
To help give you a clearer picture, here’s a breakdown of some of the key expenses to expect when selling your home (see graph below):
Understanding the Costs in Perspective
One major advantage for most homeowners today is the significant amount of equity they’ve built up over time. This equity can help cover the cost of selling and still leave you with a strong return. You might even have enough leftover equity to put towards your next home purchase.
Let’s explore some of the common costs in more detail and where you might be able to save money.
Closing Costs and Commission
Closing costs are the fees you’ll pay to complete the sale. These include your own closing costs and possibly some of the buyer’s if you offer to cover part of their expenses. As U.S. News Real Estate explains:
“Closing costs are fees 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.”
The exact amount will depend on your state’s tax rates and the commission agreement you make with your agent. Keep in mind, these are estimates and you could receive a credit at closing for property taxes or escrow payments, which could help reduce your total costs.
Pre-Listing Inspection and Repairs
A pre-listing inspection is an optional but useful step that gives you a chance to address any potential issues before the buyer’s inspection. This can prevent last-minute negotiations over repairs or concessions, making your home more appealing right from the start.
If you choose not to do a pre-listing inspection, your agent can guide you on smaller improvements that can boost your home’s appeal, like fresh paint or minor repairs, ensuring you’re spending wisely to get the best return on investment.
Home Staging
As housing inventory increases, you may want to consider staging your home to make it stand out. Staging involves adding furniture, décor, or artwork to make the space more appealing to potential buyers. According to Bankrate:
“Home sellers typically pay somewhere between $782 and $2,817 in home staging costs . . . but the price tag can vary widely.”
While staging is optional, your real estate agent can offer advice on simple, cost-effective ways to enhance your home’s appearance—like removing clutter, rearranging furniture, or depersonalizing certain areas.
Why Working with an Agent Matters
While it might be tempting to cut costs by skipping optional steps like staging or inspections, one area you don’t want to skimp on is hiring a professional real estate agent. An experienced agent provides invaluable guidance, from staging and repairs to pricing and marketing your home.
Your agent will also develop a customized plan to showcase your home’s best features, helping you potentially sell for more.
Bottom Line
Want a clearer understanding of what to expect when selling your home? Connect with a local real estate agent who can walk you through the process and help you navigate the costs effectively.
