what does it cost to sell your home

Table of contents:

• Cost of selling a house – in a nutshell
• Preparing your domicile to sell
• Staging costs
• Landscaping
• Habitation repairs & maintenance
• Home improvements
• Negotiating the sale
• Real estate agent commissions
• Seller concessions
• Finalizing the deal
• Closing costs
• Buyer's dwelling house warranty
• Relocating
• Moving costs
• Home transition and overlap costs
• Takeaways
• Example: the costs of selling a house

While the average real estate agent commission hovers around v% to vi%, depending on where you alive, the total cost of selling tends to be higher.

When you factor in boosted costs that are common in nearly sales similar repairs, closing costs, and relocating costs, your full expenses can come closer to 10% of the abode's auction toll.

At that place tin can also exist a substantial investment of time as you expect for the correct buyer to make an offer, qualify for a mortgage, and and so shut the deal.

This guide gives yous an overview of how much it costs to sell your abode and then you can choose the best way to sell that makes sense for your budget.

→ If you're exploring dissimilar options, larn how the price of selling to Opendoor compares to a traditional auction.

What is the price of selling a firm, in a nutshell?

Assuming you sell your house for $248,000 (the median price for a single-family home in the U.Southward. in 2018) you lot could finish up paying $41,000 in full costs. The real estate commission volition be almost likely the biggest fee you volition pay every bit a seller.

See out a more detailed breakdown of our estimated domicile selling toll in the section at the finish of this guide.

Preparing your home to sell

Earlier list your dwelling house, you'll want to ensure that it's market-set up to attract interested buyers. There are four main costs to consider equally you prep your habitation.

Staging costs (~i% of auction price)

When prospective buyers see your habitation for the get-go time, you desire them to focus on the dwelling house's best features while visualizing themselves living in the space. That's where staging comes in. Staging involves arranging article of furniture and decor to brand a home every bit visually appealing to buyers every bit possible.

According to price comparing site Fixr, the boilerplate cost nationally to hire a professional stager ranges from $ii,300 to $3,200. You may save money staging your abode yourself, but yous'll have to invest the time to set up and maintain each room.

If you're going the do-it-yourself route, consider what you'll need to purchase. That might include paint, new furniture or calorie-free fixtures, defunction, and decorative accessories. Yous may also want to rent a deep cleaner for carpets, which can price $35 to $50 per twenty-four hours, or pay for professional carpet cleaning, which tin cost $80 to $550 according to HomeAdvisor.

Staging can pay off when you're ready to sell. In a National Association of Realtors (NAR) survey, 29% of sellers' agents reported an increase of 1% to 5% in the dollar value offered past buyers. 20-1 percentage reported that staging increased the sellers' home value by 6% to 10%.

→ Want to skip the hassle of listing, showings, and months of doubtfulness? Learn how selling to Opendoor works.

Landscaping costs (~1%)

The exterior of your home can be about every bit important as the inside when it comes to selling. Curb appeal tin can entice buyers, especially those who shop online and rely on photos to compare homes. Landscape maintenance covers things like mulching, pruning shrubs and planting flowers; standard lawn intendance covers weeding and fertilizing.

At the low end, landscaping tin cost just a few hundred dollars if you're doing something simple similar reseeding the lawn or sprucing up your blossom beds. The average cost of a more comprehensive service—flower beds, plants, trees, etc—is around $3,239, according to HomeAdvisor. This will of course depend on the size of your yard and the extent of the job.

Home repairs and maintenance (varies)

Maintenance and repair issues are one of the primary reasons why awaiting home sales autumn through at closing. If you're selling to Opendoor, we simplify the repair process so y'all take the certainty of a competitive offer and more than flexibility in how you can handle needed repairs. If yous're selling the traditional way, ensuring your home is in good condition before listing can help you avoid making major concessions to the buyer when an offer is on the table.

Equally you prepare to sell, inspect your home for damaged features, broken appliances, and spaces that need to be cleaned or refreshed. Our domicile maintenance checklist will walk you through mutual repair items that can touch on your home's value and specifically what to await for as you inspect each surface area.

Getting a pre-inspection assessment tin likewise help you pinpoint what needs to be fixed. The total cost of repairs will vary based on your home's condition. Every bit you list out necessary repairs, decide what you can do yourself and where you'll need to hire professional assistance. Compare quotes from multiple contractors so you lot have a range of prices to consider.

Home improvements (varies)

Aside from repairs, consider whether you want to make any renovations to the home, what you lot might spend in both time and coin, and the potential render on investment.

For example, kitchens are the most of import space for buyers, according to a NAR survey. A minor remodel could cost you virtually $21,200 on average, according to the Remodeling 2018 Cost vs. Value Report. The upside is an 81.1% recoup of the price at the sale, only you're investing time and free energy if y'all're doing a remodel yourself. Hiring professionals can save time but you might find it inconvenient or cost-prohibitive.

Focusing on smaller renovations that add value for buyers might make more sense if you don't accept as much time or coin to spare. Instead of a complete kitchen overhaul, for instance, you could spend a weekend updating chiffonier pulls and installing a new backsplash. Both can take hold of a heir-apparent's middle and boost your home'south value.

Negotiating the auction

In one case your dwelling is ready to list, the next pace is waiting for a buyer to make an offer. Afterwards you've accepted an offer, you can move into the next phase of the selling procedure, which usually involves some back and forth negotiation between your agent and the heir-apparent'south agent. There's also some other round of costs to weigh.

→ See our guide to selling your home fast

Real estate agent commissions (~5% to 6% of sale price)

Working with a real manor agent means they handle the selling legwork for y'all, such as arranging tours, scheduling paperwork, updating your listing, and arranging things similar photography of the abode. This saves yous fourth dimension, but these services aren't complimentary. On boilerplate, Bankrate estimates sellers pay five% to 6% of the sale toll as commission fees. For a $300,000 home, that means you'd pay $xv,000 to $18,000.

This commission is split between your agent and the heir-apparent's agent. If you lot're selling to Opendoor, our service charge currently hovers around 5%, which is similar to the 5-vi% existent manor commission that covers both the list amanuensis's commission and the buyer's amanuensis'due south commission in a traditional sale. Larn more nearly our pricing and how it compares to a traditional sale.

You could likewise fly solo and sell your home without an agent, but you lot still might exist responsible for paying commission to the buyer'due south agent, if the buyer is represented by an agent. Assuming that'south half the boilerplate fee estimated by Bankrate, you'd pay two.5% to 3%. Considering that 87% of buyers employ an agent, according to the NAR, that commission is oft an unavoidable expense.

→ A cash offer from Opendoor allows a faster, more certain sale. See what we can offering for your domicile.

Seller concessions (~1.5% to two%)

A concession means you've agreed to pay certain costs for the heir-apparent, ordinarily as a means of sweetening the bargain so the buyer is more likely to shut. For example, they might inquire for aid with inspection fees, processing fees, or other costs. A buyer might enquire for a concession if they don't take enough greenbacks to comprehend their endmost costs or if the dwelling house is older and they desire to preserve greenbacks to brand updates. Buyers can as well utilise concessions as a bargaining tool in a heir-apparent's market, or to outset the cost of having to make a college offer to compete in a seller'southward market place.

The amount a heir-apparent tin can request is express by their loan blazon. Conventional loans adhering to Fannie Mae guidelines allow for concessions of upward to 3%, 6% and 9%, based on the size of the buyer'due south down payment. For FHA and VA loans, which are backed by the Federal Housing Administration and the Department of Veterans Affairs, respectively, concessions are capped at vi% and 4%, co-ordinate to The Mortgage Reports.

The market you're selling in can influence what yous pay in concessions. Opendoor'due south assay of internal and public domicile sale data in our markets indicates that when buyers ask for concessions, they typically ask for near ane.5% to 2% of the domicile auction cost.

Finalizing the deal

As you arroyo your closing, there are nevertheless a scattering of costs to plan for.

Endmost costs (~i% to 3% of auction price)

Closing costs are an assortment of fees—separate from agent commissions—that are paid by both buyers and sellers at the shut of a real estate transaction. We break these down in our weblog on closing costs for the seller. Co-ordinate to Realtor.com, sellers typically pay betwixt one% and 3% on average at closing. If you're hoping to sell your home for $250,000, you could potentially pay $two,500 to $seven,500 in closing costs.

Closing costs are usually lower for the seller because at that place are fewer fees involved. Typically, the main costs you'll pay include the closing fee, which is paid to the closing agent, property taxes, your chaser'south fee, recording fees, a transfer tax, and any costs associated with paying off your original mortgage.

Transfer Taxes

Transfer taxes apply when transferring the championship of a piece of real manor from one person to some other. Transfer tax can be assessed at the country, county, and municipal levels. The amount you pay depends on where the sale takes identify. According to the National Conference of State Legislatures, 12 states charge no real estate transfer revenue enhancement at all. Arizona charges a flat transfer fee of $2. The remaining states have transfer taxes that typically range from 0.01% to 5% of the sale price.

Mortgage payoff

Before yous can officially deem a sale finished, you'll need to pay off your mortgage. The proceeds of the sale are used to pay off your old loan, but there may be a small shortfall if the payoff amount doesn't include prorated interest. You might have to cut a cheque to the lender to make up the difference.

Additionally, you may have to pay a prepayment penalization for paying off your loan ahead of schedule. Prepayment penalties are normally set at 2% to four% of your original loan amount, according to Realtor.com.

Buyer's home warranty (<1%)

While your homeowners insurance usually covers the structural aspects of your home in the event of damages caused by fire or certain types of natural disasters, a dwelling warranty has a different telescopic. According to Realtor.com, habitation warranties can cover repair and/or replacement costs for kitchen appliances and the washer and dryer, every bit well as the electric, plumbing, and heating and air systems.

You tin can offer to purchase a warranty to cover the home leading up to closing, so the buyer knows they're not facing repair costs as presently as they sign. Or, you lot could offer to pay for a twelvemonth or two of warranty coverage subsequently endmost. A heir-apparent warranty can price between $300 and $600, according to Realtor.com. It's a nice perk to offer buyers, only it'due south non a requirement.

Relocate to your new abode

By now, yous might recall y'all've finished paying for all the costs of selling your domicile. But equally you are preparing to relocate to your new home, recollect to take the following costs into business relationship besides.

Moving costs (~1% to 2%)

You may move earlier the closing or later. 3 factors that influence moving costs are:

• Whether you're moving a brusque or long distance
• The number of household items y'all're moving
• Whether y'all're moving yourself or hiring professional movers

Hiring professional movers has its advantages. A full-service mover can handle packing your property, moving them to your new home, and unpacking them. You lot may pay a flat fee or an hourly fee for that convenience.

HomeAdvisor estimates the price of professionally moving a three-bedroom house locally at $760 to $1,000. Movers charge more than for longer altitude moves and to transport heavy or bulky items, such as a piano or your kids' swing set.

For a DIY move, renting a moving truck tin can toll as piffling as $fifty or over $two,000, according to HomeAdvisor, depending on the size of the truck and the number of miles traveled. A local motility could toll just a few hundred dollars when you cistron in the rental fee and gas. You'll as well need to pay for boxes, tape, and other packing materials.

If you have things that need to be thrown away, you may likewise have to pay for either a portable dumpster that tin exist picked up, or to have someone haul those items away. Finally, y'all may need to pay deposits for electric, gas, water and trash collection at your new dwelling house.

Remember that timing matters with a move. HomeAdvisor suggests the cost of a motility may be twice as high during the summertime months. From May to September, demand for moving trucks and professional moving services peaks, as families oft motion in summer while school is out, and higher students motion to and from campus. College competition for moving services often results in higher prices.

Home transition and overlap costs (~i%)

There'due south commonly a transition flow between selling your current home and moving into a new ane. If you've already airtight on a new place, yous might pay ownership costs for two homes simultaneously. That tin can include both mortgages, utility costs, HOA fees, property taxes and homeowners insurance.

If you haven't closed on the new abode or you lot're still searching for the right one, yous'll need to budget for temporary living arrangements. You'll likewise demand to pay to have your article of furniture and other belongings stored until you can settle permanently. According to SpareFoot, the average monthly toll of self-service storage ranges from around $66 to almost $135, based on the size of the unit. Proceed in mind, in this scenario y'all may need to move twice, which aside from being time-consuming, can also be very expensive.

Our analysis of internal and industry data suggests that together, transition costs typically add together up to nearly 1% of the sale price, assuming a transition menses of one and a one-half months. 1 of the advantages of selling to Opendoor is we give yous command of your moving timeline so you can avoid these housing overlap costs.

Primal takeaways

There are typically more costs to selling a habitation beyond real manor agent commissions—10% of the sale cost is a good place to kickoff. Take time to calculate each of the costs listed here individually, assuming they apply to your situation. The more than accurately you're able to estimate the full corporeality you'll pay, the less room there is for surprises. More importantly, yous'll have a amend idea of how much yous stand to walk abroad with, and therefore, how much you tin can put towards your next domicile.

Breaking down the costs of selling a home

In the tabular array beneath, we interruption downward common home selling costs, assuming an offer price of $248,000 – the median single-family home price in the U.Southward. in the quaternary quarter of 2018, according to NAR.

You can see that when you take all the expenses into account, the total cost of selling reaches over 16% of the auction price. Proceed in mind that these costs will vary based on the circumstances of the sale, but y'all can quickly meet how the cost of selling extends beyond real estate agent commissions.

Home sales price	$248,000
Cost item	Cost amount	% of sales toll
Home preparation
Staging costs	$2,480	1%
Home repairs & renovations *	$12,400	5%
Negotiating the sale
Real manor agent commissions	$xiv,880	6%
Seller concessions	$three,720	i.5%
Finalizing the deal
Closing costs **	$2,480	ane%
Relocation
Transition and overlap costs	$2,480	1%
Moving costs	$2,480	1%
Full costs	$40,920	16.7%
Estimated proceeds	$207,080

*For repair costs, we took the national boilerplate in 2018 according to homeadvisor.com.
**Includes estimated cost of title, escrow, notary, and the transfer tax

Rebecca Lake

This commodity is meant for informational purposes only and is non intended to be construed as financial, tax, legal, existent estate, insurance, or investment advice. Opendoor always encourages you to accomplish out to an advisor regarding your ain situation.

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Source: https://www.opendoor.com/w/guides/how-much-does-it-cost-to-sell-a-house

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