The total cost of selling a house includes agent commissions, closing costs, repairs, taxes, and moving costs, which can add up to 10% to 15% of the sale price.
When people think about selling a home, the conversation almost always starts with the sale price. That makes sense. But what a lot of sellers don’t realize is that a big chunk of that sale price goes right back out the door in fees, commissions, taxes, and other expenses. The cost of selling a house is everything you have to pay between the day you decide to list and the day you hand over the keys. It includes the obvious stuff, like your real estate agent’s commission and the closing costs that get deducted at settlement, and it includes the less obvious stuff, like the money you spend fixing a leaky faucet or repainting your living room so the place shows well.
According to the National Association of REALTORS®, the vast majority of home sellers work with an agent, and commission remains one of the largest line items in any sale. On top of that, sellers can face transfer taxes, title insurance premiums, outstanding property tax balances, and attorney fees depending on where they live. So why does this matter to you? Because if you don’t account for these costs upfront, you could walk away from closing with thousands less than you expected.
This entry breaks down every major cost that will come with selling your home, shows you worked examples with real dollar amounts, and gives you practical ways to keep more of your equity. AmeriSave can also help if you’re thinking about buying your next home once the sale goes through.
The short answer is that most sellers spend between 10% and 15% of the home’s sale price on the full bundle of selling expenses. That range comes from Freddie Mac and multiple industry sources, and it holds up across most markets. On a $400,000 home, that’s somewhere between $40,000 and $60,000 that comes off the top before you see your net proceeds.
Let’s walk through a worked example so you can see where all that money goes. Say you’re selling your home for $400,000 and you still owe $200,000 on the mortgage. Your listing agent’s commission is 2.88%, which comes out to $11,520. You also agree to cover the buyer’s agent at 2.82%, which is another $11,280. That’s $22,800 in commissions alone. Then you have closing costs of about 2% of the sale price, or $8,000, covering things like title insurance, transfer taxes, and attorney fees. You spend $5,000 on minor repairs and a fresh coat of paint, $1,500 on staging, and $3,000 on movers. Your total costs run about $40,300. After you pay off the remaining $200,000 mortgage balance, you’re left with roughly $159,700 in net proceeds. That’s real money, but it’s a lot less than the $200,000 in equity you thought you had.
Every sale is different. Your costs will be higher or lower depending on your market, the condition of your home, and how you structure the deal with your agent.
Not all selling costs hit you at the same time. Some you pay out of pocket before the sale, some get deducted from your proceeds at closing, and some pop up after the fact. Here’s what to budget for.
Agent commissions have traditionally been the biggest single expense for sellers, and that hasn’t changed much even after the landmark National Association of REALTORS® settlement that took effect in August of the same year. Under the new rules, sellers are no longer required to offer a commission to the buyer’s agent through the MLS, and buyers now have to sign a written agreement with their agent that spells out the fee. In practice, though, many sellers still choose to offer buyer’s agent compensation because it can attract more offers and keep the deal moving.
Recent survey data shows total real estate commission sits at about 5.70% of the sale price, with listing agents averaging around 2.88% and buyer’s agents around 2.82%. On a $400,000 sale, that works out to roughly $22,800 if you’re covering both sides. This is the cost that gets the most attention, and for good reason. It’s usually the largest check you’ll write in the whole transaction. You can negotiate this rate, and you should have that conversation with any agent you interview. AmeriSave’s team recommends getting quotes from at least two or three agents before you commit.
Closing costs for the seller typically run between 1% and 3% of the sale price, according to Freddie Mac. These fees get pulled from your sale proceeds at the closing table, so you don’t usually write a check for them. They can include title insurance premiums, transfer taxes, recording fees, settlement or escrow fees, prorated property taxes, and attorney fees if your state requires one. In some states, transfer taxes alone can run 1% to 2% of the sale price, while other states don’t charge them at all.
This is one of those costs that varies a lot by location, so ask your agent what to expect in your market.
You don’t have to fix up your home before you sell it, but most sellers find that some level of prep work pays for itself. A fresh coat of paint, a deep clean, and fixing things that are obviously broken can make a big difference in how buyers see the property.
This doesn’t have to cost a fortune. Minor cosmetic fixes might run a few hundred dollars, while bigger projects like replacing worn-out carpet or fixing a roof issue could push into the thousands. The key is to focus your dollars on repairs that affect how buyers feel when they walk through the door, not on full-blown renovations that you won’t get back dollar for dollar.
A pre-sale home inspection is another option that can actually save you headaches down the road. The U.S. Department of Housing and Urban Development estimates that home inspections typically cost between $300 and $400. Getting one done before you list means you’ll know about any major issues ahead of time, which puts you in a stronger position when buyers start asking questions.
Staging is optional, but the data says it can make a difference. The National Association of REALTORS® found that about 20% of buyer’s agents reported staging increased the value offered by 1% to 5% compared to similar homes that weren’t staged. Professional staging can cost anywhere from $600 to $2,800 or more depending on the size of the home and how long it’s on the market. Professional photography usually runs $100 to $500 and is often included in your agent’s marketing package.
Worth it? Sometimes. It depends on your home and your market.
If your home is vacant or the furnishings are dated, staging will help buyers picture themselves living there. But if the house already shows well and you’re in a market where homes are moving fast, you might not need to spend the cash.
Taxes are the part of selling that catches a lot of people off guard. You’re making a profit on the sale, and the government will want its share. But there are some protections built in for homeowners that can save you a lot.
If you sell your home for more than you paid for it, the profit is technically a capital gain, and it could be taxable. The good news is that the IRS allows homeowners to exclude up to $250,000 in capital gains from the sale of a primary residence if you’re filing as a single taxpayer, or up to $500,000 if you’re married and filing jointly. To qualify, you generally need to have owned and lived in the home for at least two of the five years before the sale. This exclusion has been around since the Taxpayer Relief Act of 1997, and it shields the vast majority of home sellers from capital gains taxes entirely, though sellers with large gains in high-appreciation markets may still owe something on the portion that exceeds the limit.
You’ll owe a prorated share of property taxes at closing, covering the period from the start of the tax year through the date of the sale. This could be a few hundred dollars or several thousand, depending on when you close relative to when taxes are due. Transfer taxes are a separate fee that some state and local governments charge when a property changes hands. Not every state has them, and the rates vary widely. In states like Delaware, the transfer tax rate can run as high as 3% of the home’s fair market value, while states like Texas and Indiana don’t charge a transfer tax at all. Some sellers also face HOA transfer fees if the property is in a homeowners association.
Ask your real estate agent early in the process what taxes and fees you should expect in your specific area.
Moving is the expense everybody knows about, but nobody really plans for. A local move with professional movers can run $1,000 to $3,500, and a long-distance move can push well past $5,000 depending on the size of your household and how far you’re going. If you’re doing it yourself with a rental truck, costs start lower but can still add up once you factor in gas, insurance, and the pizza you’re buying for whoever shows up to help carry the couch.
The hidden costs are the ones that really sneak up on sellers. If you buy your next home before the old one sells, you’ll be carrying two mortgage payments, two sets of utility bills, and double the insurance premiums for weeks or even months. Short-term storage fees, temporary housing deposits, and cleaning costs for the home you’re leaving can pile up too. The best thing you can do is map out the timeline and overlap period, so you’re not scrambling at the last minute. AmeriSave can help you think through the financing for your next purchase, so you’re not guessing about what you can afford.
You can’t eliminate selling costs entirely, but you can take steps to keep them manageable. Here are a few strategies that will help.
Negotiate the commission. Agent fees aren’t set by law, and the National Association of REALTORS® has consistently stated that commissions are fully negotiable. Interview several agents, ask each one what they charge and what that fee covers, and don’t be afraid to push for a rate that works for your situation. Some agents offer flat-fee structures or tiered service models that will save you cash if you’re willing to take on more of the marketing yourself. At the same time, a skilled agent can often get you a higher sale price that more than covers their commission, so this is a balance between cost and value.
Skip the big renovations. Cosmetic updates like painting, landscaping, and decluttering give you the best return for the cash. Major kitchen or bathroom remodels rarely pay back dollar for dollar when you’re selling, and they can delay your listing. Focus on the repairs that make your home feel move-in ready without going overboard.
Time the market if you can. Listing in a seller’s market, where demand outstrips supply, will give you more leverage on price and potentially let you negotiate better terms on commissions and concessions. This isn’t always within your control, but if you have flexibility, it’s worth paying attention to local market conditions. AmeriSave’s team can walk you through what the buying side looks like if you’re also shopping for your next home.
Watch out for seller concessions. In slower markets, buyers may ask you to cover some of their closing costs. This is negotiable, and your agent will help you weigh whether the concession is worth it to close the deal. Just make sure you factor it into your net proceeds calculation so you know what you’re actually walking away with.
Selling your house is a business deal, and it costs real money to do it right. Plan on spending 10% to 15% of the sale price, keep track of where every dollar goes, and figure out a sale price that makes sense by working backward from your net proceeds. Talk to a few agents, make some small repairs to your home, and keep an eye on the taxes. If you're buying a new home on the other side of the sale, AmeriSave can help you get the money you need so the move goes smoothly. Do the hard things first. Knowing the numbers makes your next chapter a lot easier.
What are the costs of selling a house worth $400,000?
The total cost of selling a $400,000 home is usually between $40,000 and $60,000. That includes about $22,800 in agent commissions (5.7% of the total), $4,000 to $12,000 in closing costs, and any money you spend on repairs, staging, and moving. The costs you actually pay depend on where you live, the state of the market, and how you negotiate the deal. You can use AmeriSave's mortgage calculator to help you figure out the numbers on your next purchase. You can also start looking at homes while you plan your sale with ComeHome by AmeriSave.
The seller closing costs are the taxes and fees taken out of your sale proceeds at the closing table. They usually cost between 1% and 3% of the sale price and can include title insurance, transfer taxes, recording fees, prorated property taxes, attorney fees, and escrow or settlement fees. The costs differ from state to state and city to city. Freddie Mac says that sellers should also set aside 2% to 4% of the sale price for taxes and fees on top of commissions. Get a seller's net sheet from your agent early on so you know what to expect.
No, sellers don't have to pay the buyer's agent a commission. After the NAR settlement went into effect in August, buyers now have to sign a written agreement with their agent that lists the fees. Sellers can still offer to pay the buyer's agent fee to get more buyers, and many do, but it's not a requirement; it's just a point of negotiation. Your listing agent can help you figure out what works best for your market. The AmeriSave Resource Center has more information about how the buying and selling process works for both buyers and sellers.
Section 121 of the Internal Revenue Code says that homeowners can keep up to $250,000 in profit from the sale of their main home ($500,000 for married couples filing jointly). You usually need to have owned and lived in the house for at least two of the five years before you can sell it. If your gain is less than those amounts, you may not have to pay any capital gains taxes. If your gains are above the exclusion threshold, you will have to pay tax on them at your capital gains rate. A tax expert can help you understand your own situation.
It depends on how the house is and how the market is where you live. Small cosmetic repairs like painting, fixing broken fixtures, and deep cleaning usually pay for themselves because they make the house look better and sell faster. Most of the time, major renovations don't get back all of their costs when the house is sold. A pre-listing inspection, which HUD says costs between $300 and $400, can help you decide which repairs are worth the money. The prequalification tool from AmeriSave can also help you figure out how much home you can afford next. This might affect how much you spend on fixing up your current home.
A seller concession is when the seller agrees to cover some of the buyer's closing costs or other costs as part of the deal. This happens a lot in buyer's markets, where sellers may need to make the deal sweeter to get offers. The buyer's lender decides how much a seller can give by setting limits on the type of loan and the amount of the down payment. Your real estate agent can help you figure out if it makes sense to offer concessions on your sale. At AmeriSave's Resource Center, you can find out more about closing costs and how they work.
The commission for the listing agent is usually between 2.5% and 3% of the sale price. You can also choose to pay the buyer's agent, which adds another 2.5% to 3%. The total commissions on a $400,000 sale could be between $20,000 and $24,000. You can talk to your agent about these rates, and some of them offer flat-fee or lower-rate plans. The price of your home can be affected by how well your agent markets and negotiates, so think about how much they are worth compared to how much they cost. To see what rates are like for your next purchase, go to AmeriSave's mortgage rates page.
Sellers often forget about holding costs like mortgage payments, utilities, insurance, and property taxes that keep going while the home is on the market. These costs are in addition to commissions and closing costs. Costs of moving, temporary storage, times when you're paying for two homes at once, and small repairs found during the buyer's inspection can all add up. If you pay off your mortgage early, some lenders will charge you a prepayment penalty. Ask your servicer about this. AmeriSave can help you figure out how to handle the money side of selling and buying so you know what to expect.
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