How Much Does It Really Cost to Sell a House?
If you’re selling your home, you want to squeeze every dollar out of the sale, but selling expenses can quickly add up and reduce your profit. To give you an idea how much you should expect it to cost, we have broken down the typical selling expenses for an average $200,000 home.
Staging and Cleaning
The first expense you may run into is staging and cleaning your home to enhance its best features. Although you can stage your home yourself, a professional home stager knows all the local trends and has resources to have your home looking its best. The average seller will spend around $2,000 for staging.
Repairs of some sort are almost always necessary, and can increase the home’s resale value. Some examples of these repairs include kitchen, bathroom, plumbing, electrical repairs, and even paint renovations. The average seller ends up spending about $1,500 on repairs prior to inspections, $2,500 on code repairs, and $6,000 on home updates following the inspection, for an average total of $10,000.
A seller’s assist is when the seller pays a portion of the buyer’s closing expenses, which can be up to 6% of the home’s purchase price.
“When a buyer doesn’t have enough money, it’s very common for them to request the seller to provide them about 3-6% of the purchase price to pay for their closing cost,” says Don Wenner, CEO of DLP Realty.
If the buyer asks the seller to cover 6% of their closing expense, the cost of seller’s assist on the average home add up to $12,000.
Closing Costs/Title Fees
Sellers usually pay about 1% in transfer taxes as a part of their closing cost. On the average $200,000 home, that’s $2,000. Title insurance and mortgage-related fees average to about $500, for a total of $2,500.
An expense often overlooked is holding costs. Holding costs are the typical monthly expenses that you’ll need to continue paying until your current home is sold. These include your mortgage, taxes, insurance, and your utility bill expenses. If you buy a new home before selling your old one, you’ll end up paying holding costs on both homes until you sell your current home. For the average home, this expense averages about $1,700 a month.
“In total, the average cost to sell a home can add up to about $49,000,” says Wenner. That can be quite an unpleasant surprise to most home sellers.