What Are the Costs Associated with Selling a Home? (2025 Guide)

When you sell a home, it's easy to focus on the potential profit—but don’t overlook the expenses that come with it. Understanding the costs associated with selling a home helps you plan realistically and avoid surprises at closing. Here’s a breakdown of typical seller expenses in 2025:

1. Real Estate Agent Commissions

• Typical Cost: 5% to 6% of the sale price

• This is often the largest expense, split between the buyer's agent and the seller’s agent. While commission rates can vary, most sellers agree to pay this fee for professional marketing, negotiation, and managing the transaction.

2. Home Repairs & Improvements

• Typical Cost: Varies widely, from minor touch-ups to major repairs

• Pre-sale repairs, staging, landscaping, and painting can make a big difference in attracting buyers. Some sellers opt for pre-inspections to address issues proactively.

3. Closing Costs

• Typical Cost: 1% to 3% of the sale price

• These include title insurance, escrow fees, prorated property taxes, and transfer taxes. Exact amounts vary by location and deal specifics.

4. Staging and Photography

• Typical Cost: $500 to $3,000+

• Professional home staging and high-quality photography help your home stand out online. In competitive markets, this investment can pay off with faster sales and higher offers.

5. Seller Concessions

• Typical Cost: Negotiated (can range from a few thousand to more)

• In a buyer’s market or if your home needs work, buyers might ask for closing cost credits, repair credits, or rate buy-down assistance.

6. Mortgage Payoff & Prepayment Penalties (if applicable)

• Typical Cost: Remaining loan balance + potential early payoff fees

• Check with your lender if there are any prepayment penalties for paying off your mortgage early.

7. Capital Gains Taxes (if applicable)

• Typical Cost: Depends on gain amount and eligibility for exemptions

• If your home has appreciated significantly, you may be subject to capital gains taxes unless you qualify for the primary residence exclusion.

8. Moving Costs

• Typical Cost: $1,000 to $5,000+ depending on distance and size

• Don’t forget to budget for moving expenses, which can include hiring movers, storage fees, and interim housing if needed.

Bottom Line

Selling a home can come with 8-10% of your sale price in expenses once you factor everything in. However, with proper planning and a trusted real estate advisor, you can maximize your return while managing these costs effectively.

FAQs

1. How much does it cost to sell a home?

Most sellers can expect to pay around 8-10% of the home's sale price in total costs. The largest chunk is typically the real estate agent commission (5-6%), followed by closing costs, repairs, and staging.

2. Do I have to pay the buyer’s closing costs?

Not always. In a competitive seller’s market, buyers typically cover their own closing costs. However, in slower markets, buyers may ask for seller concessions, such as covering part of their closing costs or offering repair credits.

3. Can I sell my home without a realtor to save commission?

You can, but FSBO (For Sale By Owner) homes often sell for less and take longer to sell. A good realtor can net you more money even after commissions due to professional marketing, pricing strategies, and negotiation expertise.

4. How much should I budget for home repairs before selling?

This varies based on your home’s condition. Some homes only need a few hundred dollars in touch-ups, while others may need $5,000-$10,000 in repairs or upgrades to be market-ready.

5. Are there any tax implications when I sell?

If you’ve lived in your primary residence for at least 2 of the last 5 years, you may be able to exclude up to $250,000 (single) or $500,000 (married filing jointly) in capital gains. Always consult a tax professional.

6. Do I have to pay off my mortgage immediately when I sell?

Yes, your remaining loan balance will be paid off directly from the sale proceeds at closing. Your escrow company will handle this during the closing process.

7. What about moving costs?

Moving costs depend on how far you're moving and how much you’re moving. On average, budget $1,000 to $5,000 for professional movers, but it can be more for long-distance moves.

8. Can I roll my selling costs into my next home purchase?

No, most selling costs (like commissions and repairs) need to be paid at closing. However, your net proceeds from the sale can be used for the down payment on your next home.