What are the Costs of Selling a House?
Sometimes when life calls us to new and exciting adventures, the homes we buy become the homes we sell. For many first timers, the only thing more exhilarating than buying your first home is selling your first home. But, before you take the journey towards selling for the first time, review some of our helpful tips. It could mean saving you time and money, making your experience a positive one.
Whether you’re trying to sell your home quickly or just looking for the cost of selling a house, we’ve got you covered.
How Much Does It Cost to Sell a House?
Selling a house costs roughly 10 to 15 percent of the sale price. If you were to sell a house for $300,000, you could estimate $30,000 to $45,000 for related costs like commissions, repairs and improvements, closing on your home and relocation. Since each transaction is unique, your costs could vary.
Let’s take a look at cost breakdowns related to selling a home.
A Breakdown of the Costs of Selling a Home
The cost of selling a home can be broken down into a few categories. We took the most common and looked at national averages for each.
Realtor commission fees
At the top of the list of fees for selling a house are the real estate agent fees with five to six percent of the home’s sale going to commission. The commission is divided between buyer’s and seller’s agents with seller’s bearing this cost in most real estate transactions. You can sometimes negotiate a lower rate if the price of the home is high or if the home sells quickly.
Concessions usually take one to two percent of the cost of selling a home and come when a seller agrees to pay certain costs for a buyer. This type of arrangement is usually meant to make the transaction more appealing for the buyer and encourage them to close. Concessions can look like inspection, processing or other fees. Concessions could be made for buyers who aren’t able to cover closing costs or for those who want to save some cash for repairs or remodels after the sale.
According to Fannie Mae loan guidelines, buyer concessions are capped at three, six and nine percent — amounts based on the size of the down payment. Most concessions for home sales are between one and two percent, however.
Home inspection costs
Another traditional cost in the selling process comes from the optional pre-sale home inspection. While buyers normally pay for the inspection, sellers can get ahead on repairs — or account for repair costs in the selling price — and avoid buyers changing their offers. This is usually a relatively small cost in the overall selling process with about $500 set aside for a total home inspection.
Home repair costs
Getting your home ready to sell could also involve some DIY home improvements to increase the home’s value. Simple updates like painting and decluttering, along with simple home repairs, can go a long way to increase the value of a home. However, if your inspection finds some major issues like a leaky or damaged roof, foundation problems or plumbing issues, those would be situations where you would have to make some repairs that could cost a significant amount.
Anticipate up to about five percent of the sale of the home for repairs.
Home staging costs
Home staging is where your buyer visualizes the home they imagined. Springing for a new coat of paint or upgraded flooring could add major value to your home and help sell more easily. Adding to the curb appeal of your home by tending to gardens or budgeting for landscaping upgrades could also play a big part in staging the ideal house for your buyer. Check out some home staging tips for some inspiration on getting your house ready for sale.
Hiring a professional to stage your home could be a big boost to the appeal of your property. Your real estate agent may include this as part of their services, so check before you source one of your own.
Professional stagers make necessary upgrades, adjustments and enhancements to the aesthetics of your home to appeal to potential buyers. With costs ranging from $1,100 to $3,000 on average, look for staging your home to take upwards of one percent of your sale.
Don’t forget to also spring for professional deep cleaning of the house — a modest cost ranging up to about $500 — to go along with your staging.
Typically a cost incurred by the buyer, sellers are often asked to bear the burden of the closing cost if they’re trying to sell a home in a buyers’ market with many homes for sale. Traditional closing costs include any homeowners association fees, property taxes, legal fees and title insurance. In addition, escrow fees may also be included in the closing costs.
This phase of the selling process will likely run a seller between one and three percent if you’re asked — and agree — to pay closing costs.
Now you’re at the step where you’re moving to a new place and you need your things packed, loaded up, hauled and unloaded. Your moving costs should also be factored into the final sale of the home at approximately one percent of the sales price.
Check out our stress-free moving checklist for help on getting your move organized.
Start Protecting Your New Home
No matter where the journey of life takes you, we’re here to help protect your dreams. Contact your American Family Insurance agent to discuss homeowners insurance for your next home and to learn about any discounts or insurance products that fit your evolving lifestyle.