If you’re considering selling your home, one of the first questions that might come to mind is, “How much will it cost?” The total cost can vary based on several factors, like the offer you accept, whether you contribute to the buyer’s closing costs, and any repairs you decide to make before listing.
To help you get a better idea, here are some common expenses you’ll need to prepare for (check out the graph below for more details)
But here’s something important to keep in mind—many homeowners have built up significant equity in their homes. This means you could potentially cover these costs and still walk away with a great profit, possibly even enough to help with the purchase of your next home.
Now, let’s break down a few key costs from the chart so you know what to expect and where you might be able to save some money.
Closing Costs and Commissions
These are the fees you’ll need to pay at closing to finalize the sale. You’ll have your closing costs, and you might even offer to cover some for the buyer. According to 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.”
For the average home in 2023, this could mean paying between $7,740 and $15,480 in closing costs. Keep in mind that exact costs depend on your home’s sale price, state taxes, and your agreement with your agent. However, you may get credits back at closing for things like prepaid property taxes or mortgage escrow, which can help offset these expenses.
Pre-Listing Inspections and Repairs
Some sellers opt for a pre-listing inspection to get ahead of any potential issues that could come up later during the buyer’s inspection. This can give you time to address any repairs before listing your home, ensuring it’s in top shape for buyers. While a pre-listing inspection isn’t required, your real estate agent can offer guidance on which repairs or upgrades are most likely to provide a good return on investment. From small cosmetic fixes to more significant repairs, their advice can help you prioritize your spending.
Home Staging
As the housing market shifts, standing out is key. Home staging can make a big difference in how your property shows, whether it involves adding rental furniture to an empty space or using virtual staging for photos. According to Bankrate, home staging typically costs between $782 and $2,817, but prices can vary. However, if you’re looking to save, your agent can also suggest budget-friendly ways to enhance your home’s appearance, like rearranging furniture or decluttering to create a more inviting space.
Why Working with an Agent Is Essential
If you want to keep your selling costs manageable, it’s important to know where to save—and where not to. While some expenses, like staging or pre-listing inspections, are optional, going without an agent could be a costly mistake. Your real estate agent is there to guide you through every step of the process. From offering advice on repairs and staging to creating a strategic marketing plan, they’ll help ensure your home sells quickly and for the best possible price.
Curious about what costs to expect when selling your home? Let’s connect and discuss your options!
