If you’re considering selling your home, you’re probably wondering about the costs involved. Several factors can influence the final tally, including the offer you accept, any buyer concessions, potential repairs, and more. While the expenses can vary, the good news is that the equity you’ve built in your home over time can help you recoup these costs. Here’s a closer look at some of the expenses you’ll likely encounter (see graph below):

Remember, these costs don’t mean you’ll be losing money. Most homeowners today have accumulated significant equity, which can offset selling expenses and may even leave you with extra funds to put toward your next home.

Common Costs of Selling Your Home

• Closing Costs and Commission Fees

When you sell, there are fees due at the closing table, including agent commissions and your own closing costs. Sometimes sellers also offer to help with the buyer’s closing costs as an incentive. 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. Based on the national median home sale price, this means that closing costs in 2023 for sellers are about $7,740 to $15,480.”

These costs vary based on factors like state taxes and your agreed-upon agent commission. It’s worth noting that some fees, such as prepaid property taxes or mortgage escrow, might be credited back at closing, helping offset these expenses.

• Pre-Listing Inspection and Repairs

Some sellers opt for a pre-listing inspection to anticipate any issues that might come up during the buyer’s inspection. This allows you to address any necessary repairs in advance, enhancing your home’s appeal.

If you’re not sure whether to invest in an inspection, your agent can guide you. They’ll provide advice on repairs that could boost your return on investment, like cosmetic fixes or updates, and which ones may not be worth the cost.

• Home Staging

With a growing inventory of homes on the market, staging can make yours stand out. Staging might include adding rental furniture if the home is vacant, or using artwork and décor to create a welcoming environment. In some cases, virtual staging can also be an option once listing photos are taken. Bankrate explains that:

“Home sellers typically pay somewhere between $782 and $2,817 in home staging costs . . . but the price tag can vary widely.”

If staging isn’t in your budget, you can still rely on your agent’s advice to maximize your home’s appeal. Simple adjustments, like decluttering, rearranging furniture, or adding a few strategic touches, can make a big difference.

• Why Working with an Agent Matters

While there are ways to minimize costs, it’s essential to be strategic. You might decide to skip optional items like staging or pre-listing inspections, but selling without a skilled agent isn’t recommended.

An agent provides valuable insight, from staging recommendations to repair advice. They’ll also create tailored marketing and pricing strategies to highlight your home’s best features, making it more attractive to buyers. This expertise can ultimately lead to a faster sale at a better price, adding even more value to your investment.

Bottom Line

Curious about what you’ll need to budget for when selling your home? Let’s connect and review the numbers so you can feel confident and prepared every step of the way.