What Costs are Involved When Selling a House?

Understanding the costs involved is crucial for homeowners to make informed choices. There are several common expenses associated with selling a property, which can vary depending on factors like location and the method of sale. The following are some common costs associated with selling a house:

If a homeowner chooses to use a real estate agent, the agent will usually charge a commission based on the property's final sale price. This fee is typically around 5-6% of the sale price and is divided between the seller's and buyer's agents.

Closing costs are expenses incurred during the final stages of a real estate transaction. These costs usually comprise title searches, attorney fees, property transfer fees, recording fees, and others. Sellers should expect to pay roughly 1-3% of the sale price in closing costs.

Before listing a property, it is common for buyers to request a home inspection to identify any necessary repairs. The cost of an inspection can range from $300 to $500, while repair costs will vary depending on the nature and extent of the issues identified.

When using a real estate agent, buyers will need to get lender financing in order to purchase your home. The lender wants to make sure that they are not lending on a home that is not worth the purchase price. In a vast majority of cases, home repairs will need to be made before the loan is approved. The seller bears the brunt of those home repair costs.

To make a property more attractive to potential buyers, sellers usually need to stage their home by hiring a professional stager or purchasing new furnishings. Marketing expenses may include professional photography, videography, and advertising costs. Staging and marketing costs can vary widely but generally range from $1,000 to $5,000.

Once the sale is complete, sellers will need to cover the costs of moving their belongings to a new location. These expenses can include hiring a moving company, renting a truck, or purchasing packing supplies, and can range from a few hundred to several thousand dollars.