How Much Does It Cost to Sell a House?

The idea of selling your home and cashing in on your equity is exciting, but before you start planning how to spend your profits, it’s important to factor in the costs. From agent commissions and closing costs to repairs and staging, the costs can add up fast. And depending on where you live – maybe it’s a condo in Los Angeles or a home in Boston – your expenses may be higher than initially expected. In this Redfin guide, we’ll break down how much it costs to sell a house so you know exactly what to expect before listing your home for sale.

Key takeaways

• Expect selling costs to add up between 10% to 15% of the home sale price, which includes closing costs and paying off your mortgage.
• Agent commission fees are one of the largest expenses, but they can be negotiated.
• Factor in upfront costs like inspection fees, repairs, and staging.

How much does it cost to sell a house?

The cost of selling a home isn’t one-size-fits-all, but most sellers should plan to spend around 10% to 15% of the sale price on expenses. Some may pay less, while others could pay more depending on their location, market conditions, and the home’s condition.

Seller closing costs alone typically add up to 6% to 10%, covering agent commissions, title fees, transfer taxes, and more. On top of that, you might need to budget for repairs, staging, professional photography, and moving costs. If your home has significantly appreciated, capital gains taxes could also come into play. 

The good news? Most closing costs are deducted from your proceeds at closing rather than paid out of pocket. However, some expenses (like repairs and staging) will require upfront payment. To put this into perspective, the median U.S. home price is currently $418,478, meaning total selling costs could fall between $41,800 and $62,800. Below, we’ll break down every potential cost so you know exactly what to expect.

Pre-listing costs of selling a home

Before your home even hits the market, you’ll likely need to invest in a few key areas to attract buyers and maximize your sale price. Some sellers may get by with minimal prep, while others might need to make major repairs or upgrades. These costs are typically paid out of pocket.

Pre-listing home inspection ($200-$500)

While buyers usually pay for the home inspection, some sellers choose to do a pre-listing inspection to uncover potential issues before listing their property. This proactive approach can help avoid surprises during negotiations and gives you the time to make repairs in advance, rather than under pressure. By tackling issues early, you can either fix them or adjust the price to reflect the home’s condition, giving you stronger negotiating power.

Home repairs and improvements ($1,000-$10,000+)

First impressions matter, and even small updates can make a big difference in how quickly your home sells and at what price. Common repairs include:

• Fixing leaky faucets and repainting walls
• Cleaning carpets and power-washing the exterior
• Updating kitchens, bathrooms, or replacing HVAC systems (for bigger returns)

Home staging ($500 to $5,000)

Home staging is about creating a welcoming, neutral space that allows buyers to imagine themselves living in your home. While some sellers may be able to handle this themselves, many choose to hire professionals as a well-staged home typically sells faster and for a higher price. The cost for professional staging services can range from $500 to $5,000 depending on the size and location of your home. Some staging companies charge by the hour, the number of rooms, furniture rental, etc.

Real estate photography ($200 to $1,000)

The first thing many buyers will see is the online listing, so having high-quality photos and videos is essential. Professional real estate photography, which may include virtual tours or drone shots, typically costs between $200 and $1,000. These visuals help your home stand out from other listings and can lead to more showings and higher offers.

Seller closing costs

Real estate agent commission (3% to 6% of sale price)

The real estate agent commission is one of the largest expenses of selling a home. Typically between 3% and 6% of the final sale price, this fee goes to the listing agent and oftentimes the buyer’s agent. Sellers can negotiate commission rates and whether or not they will cover the buyer’s agent fee.

Other closing costs for sellers (1% to 3% of sale price)

On top of commissions, sellers also pay closing costs, which typically are an additional 1% to 3% of the sale price. These costs can include:

• Transfer taxes and recording fees
• Escrow, title search, and recording fees
• Title insurance 
• Prorated property taxes and utilities
• HOA fees
• Attorney fees

Seller concessions (1% to 3% of sale price)

In some cases, buyers negotiate for seller concessions, meaning the seller agrees to cover part of the buyer’s closing costs. This is more common in slower markets, where sellers may offer 1% to 3% of the sale price in concessions to attract buyers. Concessions can include helping with the buyer’s loan fees, home warranty, or repairs found during the inspection.

Post-sale costs of selling a house

Mortgage payoff and possible prepayment penalties (varies)

If you still owe money on your mortgage, the remaining loan balance must be paid off at closing. This will be deducted from your home sale proceeds. Most lenders don’t charge prepayment penalties, but some do—especially on loans that are only a few years old. Check with your lender to see if you’ll need to pay any early payoff fees.

Capital gains taxes (varies)

If your home has significantly appreciated, you may owe capital gains tax on the profit from the sale. However, if you’ve lived in the home as your primary residence for at least two of the past five years, you may qualify for a $250,000 exemption (single filers) or a $500,000 exemption (married couples) on the profit before taxes apply. If you don’t qualify for the exemption, capital gains tax rates range from 0% to 20%, depending on your income level.

Moving costs ($1,000 to $5,000+)

Once your home sells, you’ll need to move which comes with its own expenses. The cost depends on distance, the amount of belongings you have, and whether you hire professional movers or rent a truck. Local moves typically cost $1,000 to $3,000, while long-distance moves can exceed $5,000. If you’re downsizing or relocating across the country, you may also have storage costs to factor in.

Total cost to sell a home: Example calculation

Here’s an estimate of what it could cost to sell a $400,000 home:

In this scenario, about $7,500 of the expenses are paid out of pocket before the sale is finalized. Once the other costs ($36,000) and mortgage payoff balance ($120,000) are deducted from the sale proceeds at closing, you’d be left with $236,500 in net proceeds from the sale. 

FAQs about the cost of selling a home

1. What is the biggest expense when selling a house?

The real estate agent commission is usually the largest cost, typically ranging from 3% to 6% of the sale price. If there are any major repairs or renovations needed, this would be the next biggest expense for sellers. 

2. Can I sell my house without paying commission fees?

Yes, you can sell without an agent using the For Sale By Owner (FSBO) method. However, FSBO homes often sell for less, and you may still need to offer a commission to the buyer’s agent to attract buyers.

3. Do I have to pay closing costs when selling a house?

Yes. While many closing costs are negotiable, there are costs associated with selling a house that sellers will end up covering. For example, transfer fees and property taxes.

4. How can I lower my selling costs?

Negotiating the agent commission, selling without an agent, or selling your home as-is (which would require no repairs or improvements) are all ways you could reduce the cost to sell your house. However, each option comes with trade-offs. Selling without an agent can be time-consuming and may result in a lower sale price, and selling as-is could limit your pool of buyers or lead to lower offers.

5. How much does it cost to sell a $500,000 house?

Using the estimated 10% to 15% selling cost range, selling a $500,000 home could cost between $50,000 and $75,000 in total expenses.

6. What’s the best way to estimate my total selling costs?

Start by factoring in agent commission (typically 3%-6%) and other closing costs (around 1%-4%). Then add in estimates for additional expenses you expect to incur like repairs, staging, and moving. Using an online home sale calculator can also provide a rough estimate based on your home’s value.

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