How Much Does It Cost to Sell a House?

How much does it cost to sell a house? Often, people think about the final sale and don’t consider the fees and costs that drain their profit.

There’s a prevailing assumption that selling a home is a guaranteed way to turn a profit. While the selling price often exceeds the original purchase price, potential sellers are often surprised by the costs associated with selling a home. Third Coast Home Buyers is here to shed some light on the real costs of selling a house and help you make an informed decision.

The Unavoidable Costs with Traditional Sales

Real Estate Agent Commissions

Arguably the most significant cost to consider when selling your home is the real estate agent’s commission, which usually stands around 5 to 6 percent of the selling price. If your home sells for $250,000, you can expect to pay $12,500 to $15,000 in commission fees. If you’re hoping to save on these costs, consider alternatives such as for-sale-by-owner or a flat-fee listing service.

Home Repairs and Improvements

Before putting your home on the market, you’ll need to make sure it’s in top shape. This could involve small fixes like repainting rooms or major repairs like fixing a leaky roof. On average, sellers spend around 1 percent of the home’s value on repairs. For a $250,000 house, that’s $2,500, but the actual cost can greatly vary depending on the condition of your property.

Staging and Home Preparation

Staging your home for potential buyers is another expense you should consider. While it’s optional, a well-staged home can significantly impact the speed and price at which your house sells. According to the Real Estate Staging Association, homes that are staged sell 73% faster, on average, than non-staged homes. The cost of staging a home ranges from $500 to $2,000 or more.

Seller Concessions

In a buyer’s market, the buyer may ask for concessions. These are costs that the seller agrees to absorb to make the deal more attractive to the buyer. Common concessions include closing costs or necessary repairs noted during the home inspection. Seller concessions typically range from 1.5 to 2 percent of the selling price.

Closing Costs

Closing costs are a collection of fees associated with the transfer of property from one party to another. These costs usually include title insurance, escrow fees, transfer taxes, and attorney fees. Closing costs for sellers typically amount to 1 to 3 percent of the home’s selling price.

Moving Costs

Finally, don’t forget to factor in moving costs. Depending on how far you’re moving and how much you have to move, costs can range anywhere from a few hundred dollars to several thousand.

Ready to Sell? Be Sure to Explore Your Options!

So, how much does it cost to sell a house? With the above information, you have a better idea of what it takes for a traditional sale.

Selling a house comes with its share of expenses that are often overlooked. In the end, the total cost to sell a home can range from 6 percent to 10 percent of the selling price. Thus, it’s essential to factor these costs into your calculations when planning to sell your home. 

Want to avoid the fees, commissions, and costs? Consider selling to a real estate investor. At Third Coast Home Buyers, we specialize in providing fair cash offers on houses across the Houston area.