How Much Does It Cost to Sell a House?

Selling your house can bring in a big chunk of cash—maybe even the biggest payday you’ve ever had. You might be dreaming about how much you could make from the sale. But before you start counting your dollars, here’s the real question: How much does it cost to sell a house?

 

We’re going to walk you through the most common expenses people run into when they sell their home—so you can plan ahead, set a solid budget, and steer clear of any financial surprises.

What’s the Average Cost to Sell a House?

The average cost to sell a house is about 15% of the sale price. So if you sell a home for $300,000, you might pay around $46,000 to cover selling costs, from agent commissions to closing costs and moving expenses.

That may sound like a lot. But keep in mind, the cost to sell a house is different for every seller. In fact, you might be able to skip certain selling expenses depending on your situation.

Here’s what a home-selling budget might look like:

What Are the Most Common Home-Selling Costs?

The most common home-selling costs are real estate agent commissions, improvements and repairs, closing costs, staging, moving expenses and a prelisting inspection—in that order, from biggest to smallest.

Home Sale Price: $300,000	Seller’s Cost	Percentage of Sale Price
Real estate agent commissions	$18,000	6%1
Improvements and repairs	$15,0002	5%
Closing costs	$9,000	3%3
Home staging	$1,9004	<1%
Moving costs	$1,7005	<1%
Prelisting inspection	$4006	<1%
Total selling costs	$46,000	~15%

Remember, we’re not including mortgage payoff here since it’s money you already owed before you ever listed the house. “Selling costs” means the fees you pay to get the transaction done. We’ll cover more on mortgage payoff later.

How Much Are Real Estate Agent Commissions?

Agent commissions are usually around 3% per agent, totaling about 6% of a home’s selling price.⁷ In some cases, sellers may offer to cover part—or even all—of the buyer’s agent fees to sweeten the deal and to attract more offers. But actual rates vary and are always negotiable.

How much does that come out to? If you sold a $300,000 house and paid both your agent and the buyer’s agent a 3% commission, the bill would come out to $18,000. That may seem like a lot, but paying for a real estate agent is worth every penny.

Here’s why: Agents who eat, sleep and breathe real estate can communicate the right expectations so you’ll feel confident throughout the selling process. They’ll give you experienced advice about how to prepare your home for buyers and give you a tried-and-true marketing plan to get your home sold on your timeline. Agents can also earn you the big bucks by providing muscle at the negotiating table.

Last year, the median sales price for sellers who worked with an agent was $65,000 (18%) more than people who sold on their own.⁸ Cha-ching!

So, while some folks may try to tell you that selling without an agent is a good way to save money, they’re just plain wrong. It’s a bad idea!

How Much Do Improvements and Repairs Cost?

Major home repairs typically cost $4,200–25,400, so we used the midpoint—about $15,000—as the estimate in the chart above.⁹

Many sellers make at least one improvement to their home before selling it, and you may want (or need) to do the same. Common repair projects include fixing roof damage, addressing structural issues, and updating outdated electrical or plumbing systems.

A home inspector may also discover you need some repairs, and those can be costly. If your house is brand-spankin’ new, you probably don’t have to worry about this. But if your house was built by pilgrims, it might need some work.

What Are Seller Closing Costs?

Seller closing costs typically run 1–3% of your home’s sale price.¹⁰ They include prorated property taxes, remaining homeowners association (HOA) fees, lender’s title insurance, title transfer fees, attorney costs, and other local government fees.

In some cases, you might want to sweeten the deal by offering to cover some of the buyer’s closing costs too. This is known as a seller concession, and it can make your listing stand out from the crowd.

How Much Does Home Staging Cost?

On average, home staging costs about $1,900.¹¹ Staging a home is all about transforming it into a warm, welcoming space buyers will want to call their own—which means bigger bucks for you on a faster timeline. The actual cost will depend on how much work your home needs to get it ready and how much of the work you decide to do on your own.

Staging costs include things like hiring a staging company, ordering cleaning services, renting furniture, installing brighter lighting, updating cabinets, and applying a fresh coat of paint.

Some of these costs might be covered by your real estate agent as part of their marketing services.

How Much Does Moving Cost?

On average, hiring professional movers costs about $1,700.¹² That might be a smart tradeoff if it fits your budget and gives you back some time. But if not, there are other routes that can save money—like renting a truck or trailer and doing the heavy lifting yourself.

The important thing is to plan ahead. Compare your options, calculate the cost, and make a choice that works for your budget.

How Much Does a Prelisting Inspection Cost?

A home inspection typically costs about $400, and can uncover problems with plumbing, electrical systems, HVAC, the roof, or even the foundation a house is sitting on.¹³

You can either fix any issues you find before you list the house for sale, or you can adjust your sale price and list the home as is.

Typically, the buyer pays for a home inspection to avoid getting hoodwinked into buying a money pit. But if you budget for an inspection before listing your home, you’ll have a chance to fix things ahead of time. That way, home repairs won’t slow down the closing process—or cause frantic buyers to change (or cancel) their original offer.

Is Your Mortgage Payoff a Selling Cost?

Your mortgage payoff isn’t technically a selling cost—it’s a separate debt repayment that comes out of your sale proceeds. Even so, it’s usually the single biggest chunk of money leaving the table after a sale.

For example, let’s say after 10 years of paying down your mortgage, you’re left with a remaining balance of $80,000. Now suppose you sell your home for $300,000. You use $46,000 of the sale earnings to cover selling expenses and $80,000 to pay off the mortgage. That leaves you with $174,000—a pretty sweet down payment for your next home! That’s called your “net proceeds,” which we’ll go into more detail on later.

If, for any reason, you’re upside down or underwater on your mortgage (meaning the loan balance is higher than the current value of your home), now probably isn’t a good time to sell your house. Because if you did sell, you wouldn’t earn enough money to pay off your mortgage. Plus, you’d have to pay all the costs that go along with selling a house.

So hang tight and keep paying down your mortgage if it’s upside down. Let the value of your home grow until you can earn enough from the sale to knock that mortgage out of the park!

How Do You Calculate Net Proceeds?

Net proceeds are the amount of cash you actually walk away with after your home sale closes. To calculate your net proceeds, subtract your total selling costs and your remaining mortgage balance from your home’s final sale price.

Sale Price − Selling Costs − Mortgage Payoff = Net Proceeds

Using our $300,000 example: $300,000 − $46,000 in selling costs − $80,000 mortgage payoff = $174,000 in net proceeds. That’s the actual cash you leave the table with. It’s the number that matters when you’re deciding what to do next, whether that’s using it toward a down payment on your next home or other financial goals like investing for your retirement (Baby Step 4) or saving for your kids to go to college debt-free (Baby Step 5).

 

How Can I Reduce the Cost of Selling My House?

You can lower selling costs by tackling repairs, handling your own move, and seeing if your employer offers any relocation help.

• DIY what you can. Break out your power tools and safety goggles! If you’re handy with landscaping, carpentry, painting or other small repairs, doing the work yourself can save you hundreds—maybe even thousands—on home repair and staging costs. Just make sure the quality holds up. Buyers notice the details.
• Trim your moving costs. The less you move, the less you spend. Start by decluttering and selling anything you don’t need to take with you. Ask local stores for free boxes and skip the moving company if you can rally some friends to help. (Just don’t forget to thank them with pizza!)
• Ask about relocation assistance. If you’re moving for a new job, check to see if your company offers a relocation package. Many employers will cover part or all of your moving costs—like transportation, temporary housing or professional movers—as part of their hiring package.

Ready to Sell Your House?

If you’re ready to put the calculator down and start selling, get the ball rolling with a local real estate agent. For a fast and easy way to find the top-performing agents in your market, try our RamseyTrusted^® program. We only recommend reliable agents who make it their personal mission to help you crush your real estate goals.

 

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