How Much Does it Cost to Sell a House?

You will pay 10% to 12% of your total home sale value while selling your house. While some of these expenses are necessary, others can be avoided. Hence you need to keep some amount handy.

Say you put your $388,000 home on the market. It will cost you an additional $38,800 to $46,560 to cover expenses like realtor fees, professional cleaning services, closing costs, etc.

How Much Does it Cost You to Sell Your House?

What Fees Do You Pay When Selling Your House?

• Agent Commission
• Settlement fees
• Home Staging fees
• Transfer Tax
• Moving Costs
• Mortgage Pay off

Out of these House Selling Costs, some of them are unavoidable. On the other hand, you can skip paying some fees for selling a house and increase your net profit.

Mandatory Costs When Selling a House:

1. Agent Fees to Sell a House

You pay 5% to 6% of your total home’s sale value in commissions to your real estate agent. This is a major chunk of the fees associated with selling a house.

The real estate commission is split 50-50 percent between the buyer’s agent and the seller’s agent.

Total Commission	$23,280 (6% paid by the seller)
Listing Agent Commission	$11,640 (3%)
Buyer Agent Commission	$11,640 (3%)

In order to sell your home for the asking price, you can quote your home selling price including the agent commission.

For instance, if you want to sell your home for $388,000 and pay a $23,280 agent commission, you would need to list it for $411,280 to achieve your desired sales price.

2. Closing Costs When You Sell a House

The typical closing costs when selling a home could reach up to 8% to 10% of the final sale price of the home, including the commission of the listing and buyer’s agent.

Closing Costs are the addition of many sub-costs that the buyer and the seller need to pay while transferring the house ownership. The closing costs generally paid by the sellers are:

• Recording fees
• Settlement fees
• Escrow fees
• HOA fees
• Title Insurance fees

» Seller Closing Cost Calculator: Calculate how much it costs to sell a home.

3. Property Tax

You pay approximately 1% of the total home sale value to the government as Property Tax. In case you have paid your property tax for an entire year, and you sell before that period ends, you get a rebate. On the other hand, if you have not paid the property tax, you need to pay the tax on a pro-rata basis.

4. Transfer Tax

It is a one-time fee (generally costs less than 1%) that is charged at the time of transferring the ownership between the two parties. You need to pay this tax to the local government body as per your respective location.

You first need to check whether your state comes under the category where Transfer Tax is charged. States like Missouri, Arizona, Idaho, Texas, Louisiana, Mississippi, Montana, Alaska, New Mexico, North Dakota, Oregon, Indiana, Utah, and Wyoming do charge Transfer tax.

While some states like New York City charge a Mansion tax as well for high-valued homes.

5. Mortgage Pay Off

You need to pay off all the dues before selling your mortgage house. The amount you will be paying is the principal amount of the loan plus the prepaying penalty charged by the bank.

You can also consider the Assumable Mortgage process. In essence, an assumable mortgage transfers ownership of the mortgage from the seller to the buyer, subject to some documentation requirements and background checks.

6. Capital Gain Tax

You become liable to pay the capital gain tax if you sell your house at an increased value compared to what you had paid. The amount will include both the loan’s principal and any prepayment penalties assessed by the bank.

7. Moving Costs to Sell a House

Hiring a packaging company for packing and shifting your house appliances and furniture to a new location can cost you $2000-$2500.

Avoidable Selling Costs for a House

1. Major Renovation

If your house is in a distressed condition, then we recommend you to go for real major renovation work. Or you can sell your home as is and reduce your home sale expense.

For example, selling a house with major renovation work like expensive wall works, fancy decor, etc. would cost you $2000 while just fixing the necessary work like plumbing, electrical, or damaged roof repairs would cost you $500.

2. Pre-Sale Home Inspection

You can definitely opt for a pre-sale home inspection. By doing this, you can bargain for the best price for your house. This expense can be overlooked initially before putting your home for sale and can be considered when you get the initial deposit from the buyer. That will allow you to manage the fund appropriately.

3. Home Staging

You need to pay the Home Stager approximately $1000 depending on the house area and location. You can avoid this charge by decluttering and depersonalizing by yourself.

With the assistance of the home staging firm, your house has a better chance of selling. The Home stager would make sure your house looks curb appealing and welcoming for the buyer by rearranging the furniture, cleaning up the house, merry real estate photography, etc.

🚩 How Much Does it Cost to Sell a House Yourself?

Selling a house yourself means saving your 3% buyer agent commission. This, For Sale By Owner (FSBO) is a DIY method of selling a property without any third-party help.

By selling FSBO, though you save up on the listing agent commission, you have to handle everything – from listing to closing – all on your own.

👍 Advantages of Selling Your Homes For Sale By Owner

• Savings on Commission: American home sellers spend around $25,722 on real estate commission (based on median home values). Selling your own house can help you save 2.5% to 3% on the listing agent commission.
• Speed to Market: You can sell your house whenever you are ready. You need not hunt for a real estate agent to begin the selling process. For-Sale-By-Owner websites like Houzeo can get you listed within 24-48 hours, or faster!
• Control Over Transaction: By interacting directly with the buyer or buyer agent, you reduce intermediaries. Also, there is no listing agent contract involved when you sell your house yourself.

👎 Disadvantages of Selling a Home For Sale By Owner

• No Help When You Need: If you need help with paperwork, inspections, negotiations, or closing, you’re on your own as a For Sale By Owner.
• No MLS Exposure: MLS is the most important tool an agent has. Selling FSBO means limited exposure, so there will be less competition for your property. That will likely reduce the selling price. Homes on the MLS sold for 17% more than homes, not on the MLS.

🚩 How Much Does a Realtor Cost to Sell Your House?

A full-service Realtor will handle everything for you – right from listing to closing. But of course, you’ll be paying a full 2.5% to 3% listing agent commission.

In the traditional sense, a seller has to pay 3% of the sale price to the listing agent and 3% to the buyer agent. And even if you find an unrepresented buyer, you’re still on the hook for the full listing agent commission.

🚩 What’s the Cheapest Way to Sell Your House?

Flat Fee MLS listing is the cheapest way to sell your house. You get your home listed on the MLS for a one-time, small fee starting from $249.

For the best real estate transaction experience you can opt for Flat Fee MLS companies like Houzeo that have nationwide coverage and disclose all costs upfront. Unlike other MLS listing services, Houzeo offers additional features like Houzeo Showings, Houzeo Offers, etc. that help you in your as-is home-selling journey.

Why Houzeo is the Best Flat Fee MLS Company?

List with Houzeo.com

Houzeo gets you on the MLS within 2 business days or even faster. Houzeo is 100% online, so you can make fast listing changes. Here’s how you can manage your as-is home selling process with Houzeo in 4 simple steps:

1. List your property on the MLS with Houzeo.com within 2 business days
2. Manage Showings effectively with Houzeo Showings
3. Review, Compare, and Negotiate Cash Offers with Houzeo Offers
4. Opt for “Contract to Close Coaching Package” and get a licensed broker to assist you during the closing

Eager to Know How Houzeo Works?

We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner websites in the U.S.

» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.

Conclusion:

Just to summarise. In order to sell your house, you must be prepared for the costs involved. You will incur some costs that must be paid for right away, while others can be delayed or even avoided.

If you want a real estate transaction that is hassle-free and has a clear fee structure, examine the available packages and register for free.

Frequently Asked Questions (FAQs)

Related Blogs for the Potential Home Seller:

• Real Estate Agents: Click here to know your nearest professional Real Estate Agent
• Sell My House Fast: Find out the different ways to sell your house fast for cash.
• Seller Disclosure: Learn what the Home Sellers Need To Disclose before selling your house.
• Selling Inherited Property: Read this blog before you decide to sell your inherited house.
• Best time to Sell a House: Planning to sell your house and want to know the favorable time to get the best deal? Must read now.
• Selling a house by owner: This would be helpful if you decide to sell your house all by yourself.

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