If you’re considering selling a house, your first question is likely about how much you can sell it. But many homeowners don’t think about the costs of selling a home. There are fees for selling a house. Some expenses you can negotiate or pass on to buyers, depending on the market. But in the end, some costs and fees fall on the seller.
Here is a summary of how much you can expect to pay when you sell a house and what that money will go to.
How much does it cost to sell a house?
In general, total closing costs for sellers are usually 7-10% of the home sale price. This can include:
- Real estate agent commissions: Usually covered by the seller, this is the fee to pay for the realtors’ services and can range between 5-6%
- HOA Transfer taxes: Sometimes covered by the seller, this is a fee to transfer the HOA fees from the seller to the buyer, and the cost can vary.
- Title Insurance: Usually paid for by the buyer but can be on the seller in some states, this is the lender’s title insurance policy, and costs can vary.
- Escrow fees: Usually split between the buyer and the seller, these cover paperwork and the exchange of funds, and costs vary wildly depending on the state.
- Attorney fees: If you choose to work with an attorney, these costs would fall on you and vary.
- Home repairs: Can be paid by the seller depending on negotiations; this would cover anything that comes out of the inspection that the seller agrees to fix before closing. The total cost can obviously vary depending on the scope of the repairs.
The average home in the US sells for around $450,000. This means that an average home seller pays between $31,500-$45,000 in fees for selling a house. That is a lot of money. But keep in mind that the seller controls the asking price and, ultimately, the sale price they choose to accept. The fees should be considered when deciding how much to list a home.
How much are realtor fees for a seller?
The most significant chunk of the closing costs for a seller goes to the real estate agents. The average commission is between 5-6% for real estate agents. The seller is usually responsible for paying their agent and the buyer’s agent.
The total fee split between the two agents is 5-6% of the home price. Realtor commissions pay for marketing, open houses, home pictures, and other time an agent spends on getting your home sold.
The agent’s commission covers house hunting, showings, negotiations, and other expenses on the buyer’s side.
Real estate agent fees are negotiable and should be discussed before entering into a contract with an agent. It’s important to remember that you get what you pay for when it comes to agent fees. Getting a discount sounds great. When you’re in the middle of negotiations and can’t reach your agent, you’ll wish you had spent the extra money.
How much are closing costs for a seller?
All possible fees associated with selling a home generally add up to between 7-10% of the home selling price. This money covers many things but mostly goes to the seller’s and the buyer’s real estate agents.
When buying a home, many costs are associated with closing. Buyer closing costs include lender fees, inspection,, and applicable taxes and insurances.
Sometimes a seller will make concessions and cover some of the closing costs charged to the buyer to make the sale. This is a case-by-case basis and up to the seller how much they want to offer a potential buyer.
There is a limit to the amount of closing costs a seller can pay depending on the loan type. The seller’s concession can not exceed the buyer’s closing costs.
Selling a Home Costs Money
Even though the idea of selling a home can sound like only money coming in, there are fees associated with it. Many people assist with the sale of a home, and because of this, there are fees for selling a house and commissions that fall on the seller.
If you’re ready to take the next step in your home selling journey, the best thing you can do is talk to an experienced, licensed real estate agent. The top agents know the market and how to set your listing price, so closing fees don’t hurt your bottom line.