Selling a house can be a daunting task, but it doesn’t have to break the bank. By understanding the costs involved, you can make a plan to minimize your expenses and maximize your profits.
How Much Does It Cost to Sell a House? Example: $500,000 Sale Price
| Cost | Description | Range |
|---|---|---|
| Real estate agent fees | Commission paid to the real estate agent, typically 5-6% of the sale price. | $25,000-$30,000 |
| Home repairs and upgrades | Costs associated with making necessary repairs and upgrades to the home to increase its value. | $5,000-$10,000 |
| Staging and photography | Costs associated with staging the home and hiring a photographer to make the home look its best for potential buyers. | $1,000-$2,000 |
| Closing costs | Costs associated with closing on the sale of the home, such as title insurance, attorney fees, and transfer taxes. | $2,000-$4,000 |
| Moving expenses | Costs associated with moving to a new home, such as packing materials, moving trucks, and storage units. | $1,000-$2,000 |
Real Estate Agent Fees
When working with a real estate agent, you can expect to pay a commission fee, which is typically 5-6% of the sale price. However, this fee is negotiable, so be sure to discuss your options with your agent. There are also many discount real estate brokerages that charge a flat fee or a percentage of the sale price that is lower than the traditional 5-6% commission.
Home Repairs and Upgrades
Before putting your house on the market, you may need to make some repairs or upgrades to increase its value. Some common repairs include fixing leaks, replacing old appliances, and repainting walls. These costs can add up quickly, so it’s important to budget accordingly.
Staging and Photography
In order to make your home look its best for potential buyers, you may need to hire a professional stager and photographer. While this is an optional expense, it can make a big difference in the final sale price of your home.
Closing Costs
At the end of the selling process, you will be responsible for paying closing costs, which typically include title insurance, attorney fees, and transfer taxes. These costs can vary depending on the location and price of your home.
Moving Expenses
Finally, don’t forget to budget for moving expenses, including packing materials, moving trucks, and storage units.
How to Minimize Your Selling Costs
There are a few things you can do to minimize your selling costs:
- Work with a discount real estate brokerage. Discount real estate brokerages typically charge a flat fee or a percentage of the sale price that is lower than the traditional 5-6% commission.
- Flat Fee Real Estate Listing. Get the benefits of listing a house on the MLS and online to reach the maximum amount of buyers, without the commission.
- á la carte Real Estate – Use a flexible real estate broker that will allow you to only pay for the services you want.
- Do your own repairs and upgrades. If you’re handy, you can save money by doing your own repairs and upgrades.
- Stage your home yourself. Staging your home doesn’t have to be expensive. You can stage your home yourself with a few simple tips and tricks.
- Shop around for closing costs. The closing costs you pay can vary from lender to lender. Be sure to shop around and compare rates before you choose a lender.
- Plan ahead for moving expenses. Moving can be expensive, so it’s important to plan ahead and budget accordingly.
Selling a house can be a daunting task, but it doesn’t have to break the bank. By understanding the costs involved, you can make a plan to minimize your expenses and maximize your profits.
Here are some key takeaways:
- The cost of selling a house can range from 10% to 15% of the home’s sale price.
- There are a number of things you can do to minimize your selling costs, such as working with a discount real estate brokerage, doing your own repairs and upgrades, staging your home yourself, and shopping around for closing costs.
- By following these tips, you can minimize your selling costs and maximize your profits when you sell your home.