How Much Does It Cost to Sell a House?

The idea of selling your home and cashing in on your equity is exciting, but before you start planning how to spend your profits, it’s important to factor in the costs. While each sale is different, the average cost of selling a house is between 10% to 15% of the sale price.

From agent commissions and closing costs to repairs and staging, the costs can add up fast. Whether you’re selling a condo in Los Angeles or a home in Boston, this Redfin article will break down exactly how much it costs to sell a house, so you know what to budget for at every step.

How much does it cost to sell a house?

The cost of selling a home isn’t one-size-fits-all, but most sellers should budget around 10% to 15% of the sale price. Some may pay less, while others could pay more depending on their location, market conditions, and the home’s condition.

Seller closing costs alone usually total 6% to 10% of the sale price, covering agent commissions, title fees, transfer taxes, and more. On top of that, you might need to pay for repairs, staging, professional photography, and moving. If your home has appreciated significantly, capital gains taxes could also apply.

To put that into perspective, if you’re selling a home at the current U.S. median sale price of $447,000, total selling costs could range from $44,700 to $67,000. The good news: most of these expenses are deducted from your proceeds at closing, not paid out of pocket. However, some costs, like repairs or staging, may require upfront payment.

Common costs of selling a house

These are the typical expenses that a majority of sellers can expect to pay, regardless of the market or property type. Some are deducted from your sale proceeds, while others require upfront payment.

1. Real estate agent commission (3% to 6% of sale price)

The real estate agent commission is one of the largest expenses of selling a home. Typically between 3% and 6% of the final sale price, this fee goes to the listing agent and oftentimes the buyer’s agent. Sellers can negotiate commission rates and whether or not they will cover the buyer’s agent fee.

2. Closing costs (1% to 3% of sale price)

On top of commissions, sellers also pay closing costs, which typically are an additional 1% to 3% of the sale price. These costs can include:

• Transfer taxes and recording fees
• Escrow, title search, and recording fees
• Title insurance 
• Prorated property taxes and utilities
• HOA fees
• Attorney fees

3. Mortgage payoff and possible prepayment penalties (varies)

If you still owe money on your mortgage, the remaining loan balance must be paid off at closing. This will be deducted from your home sale proceeds. Most lenders don’t charge prepayment penalties, but some do, especially on loans that are only a few years old. Check with your lender to see if you’ll need to pay any early payoff fees.

4. Capital gains taxes, if applicable (varies)

If your home has significantly appreciated, you may owe capital gains tax on the profit from the sale. However, if you’ve lived in the home as your primary residence for at least two of the past five years, you may qualify for a $250,000 exemption (single filers) or a $500,000 exemption (married couples) on the profit before taxes apply. If you don’t qualify for the exemption, capital gains tax rates range from 0% to 20%, depending on your income level.

5. Moving costs (varies)

Once your home sells, you’ll need to move, which comes with its own expenses. Moving expenses depend on distance, the amount of belongings, and whether you hire movers or do it yourself.

• Local moves: typically $1,000 to $3,000
• Long-distance moves: can exceed $5,000

You may also need to budget for storage if relocating or downsizing.

Optional costs associated with selling a house

Before your home even hits the market, you’ll likely need to invest in a few key areas to attract buyers and maximize your sale price. Some sellers may get by with minimal prep, while others might need to make major repairs or upgrades. These pre-listing costs are typically paid out of pocket.

1. Pre-listing home inspection ($200-$500)

While buyers usually pay for the home inspection, some sellers choose to do a pre-listing inspection to uncover potential issues before listing their property. This proactive approach can help avoid surprises during negotiations and gives you the time to make repairs in advance, rather than under pressure. By tackling issues early, you can either fix them or adjust the price to reflect the home’s condition, giving you stronger negotiating power.

2. Home repairs and improvements ($1,000-$10,000+)

First impressions matter, and even small updates can make a big difference in how quickly your home sells and at what price. Common repairs include:

• Fixing leaky faucets and repainting walls
• Cleaning carpets and power-washing the exterior
• Updating kitchens, bathrooms, or replacing HVAC systems (for bigger returns)

3. Home staging ($500 to $5,000)

Home staging is about creating a welcoming, neutral space that allows buyers to imagine themselves living in your home. While some sellers may be able to handle this themselves, many choose to hire professionals as a well-staged home typically sells faster and for a higher price. The cost for professional staging services can range from $500 to $5,000 depending on the size and location of your home. Some staging companies charge by the hour, the number of rooms, furniture rental, etc.

4. Real estate photography ($200 to $1,000)

The first thing many buyers will see is the online listing, so having high-quality photos and videos is essential. Professional real estate photography, which may include virtual tours or drone shots, typically costs between $200 and $1,000. These visuals help your home stand out from other listings and can lead to more showings and higher offers.

Example: cost to sell a $400,000 home

Here’s an estimate of what it could cost to sell a $400,000 home:

In this scenario, about $7,500 of the expenses are paid out of pocket before the sale is finalized. Once the other costs ($36,000) and mortgage payoff balance ($120,000) are deducted from the sale proceeds at closing, you’d be left with $236,500 in net proceeds from the sale. 

FAQs about the cost of selling a home

1. What is the biggest expense when selling a house?

The real estate agent commission is usually the largest cost, typically ranging from 3% to 6% of the sale price. If there are any major repairs or renovations needed, this would be the next biggest expense for sellers. 

2. Can I sell my house without paying commission fees?

Yes, you can sell without an agent using the For Sale By Owner (FSBO) method. However, FSBO homes often sell for less, and you may still need to offer a commission to the buyer’s agent to attract buyers.

3. Do I have to pay closing costs when selling a house?

Yes. While many closing costs are negotiable, there are costs associated with selling a house that sellers will end up covering. For example, transfer fees and property taxes.

4. How can I lower my selling costs?

Negotiating the agent commission, selling without an agent, or selling your home as-is (which would require no repairs or improvements) are all ways you could reduce the cost to sell your house. However, each option comes with trade-offs. Selling without an agent can be time-consuming and may result in a lower sale price, and selling as-is could limit your pool of buyers or lead to lower offers.

5. How much does it cost to sell a $500,000 house?

Using the estimated 10% to 15% selling cost range, selling a $500,000 home could cost between $50,000 and $75,000 in total expenses.

6. What’s the best way to estimate my total selling costs?

Start by factoring in agent commission (typically 3%-6%) and other closing costs (around 1%-4%). Then add in estimates for additional expenses you expect to incur like repairs, staging, and moving. Using an online home sale calculator can also provide a rough estimate based on your home’s value.

7. Are any selling costs tax-deductible?

Yes – some selling expenses, such as certain closing costs or home improvements made to sell the property, may reduce your taxable capital gain. Consult a tax professional for specifics.