Understanding the Costs of Selling Your Home

When selling your home, it's important to have a clear understanding of the costs involved to avoid surprises and maximize your profits. Here, we’ll walk you through the typical and potential expenses that come with selling a property, so you know what to expect at each stage of the process.

Real Estate Agent Commissions
One of the main costs when selling your home is the real estate agent’s commission. This is typically a negotiable percentage of the final sale price (commonly around 5-6%). While some sellers consider going the For Sale By Owner (FSBO) route to avoid paying this, working with an experienced agent often results in a higher sale price, more than covering the commission cost.


Closing Costs
Closing costs typically range from 1-3% of the home’s sale price. These include fees such as title insurance, escrow fees, attorney fees (if applicable), and transfer taxes. It’s essential to factor these into your financial planning.

Common Closing Costs Include:

• Title search and title insurance
• Escrow fees
• Notary fees
• Transfer taxes
• Recording fees

Repairs and Renovations
In some cases, sellers choose to make repairs or minor upgrades before listing their home to increase its market appeal and sale price. Additionally, after a home inspection, the buyer may request repairs or credits to cover certain fixes.

Pro Tip: Consider doing a pre-listing inspection to identify and address issues beforehand, avoiding last-minute surprises.


Home Staging and Preparation
To make your home more appealing to buyers, you may invest in professional staging, photography, or landscaping. These services help showcase your home in the best light and can increase its value, but they do come with upfront costs.

Home Staging Costs: These can range from $500 to $2,500, depending on the extent of the staging required.
Photography & Marketing Costs: While many agents cover this as part of their service, it’s worth clarifying whether any additional fees apply for premium photography, drone footage, or virtual tours.


Mortgage Payoff
If you still have a mortgage on your home, a portion of the sale proceeds will go toward paying off the remaining balance. Be sure to contact your lender for a mortgage payoff amount, which includes any remaining principal and interest, along with potential early repayment penalties.

Capital Gains Taxes
If your home has significantly appreciated in value, you may be subject to capital gains taxes. However, many homeowners qualify for an exclusion of up to $250,000 ($500,000 for married couples) if the home has been their primary residence for at least two of the past five years.

Tip: Consult a tax advisor to understand your potential tax liability.

Moving Costs
Once your home is sold, don’t forget to account for the cost of moving to your new residence. Moving services, storage fees, and packing materials can add up, especially if you’re relocating long distance.

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