Fees and Costs Associated With Selling a House in 2024
Money is always top of mind when selling a house. But, in focusing on the equity portion, people are often surprised to learn how much it costs to sell a house in the U.S.
“Depending on the price range of the home, I tell my clients that they need to be ready to spend 9%–10% of the sale price on selling costs, including the real estate agent commission and closing costs,” says Joanne McCoy, a top-selling real estate agent in Lincoln, Nebraska.
That doesn’t account for the money spent on preparing the home for listing or moving fees. To assist in tracking your total costs, we’ve put together a list of the common fees associated with selling a home, along with a description and the typical amount of each.
You can use this information to better estimate the amount you’ll actually pocket for reinvesting into your next home or creating your retirement nest egg.
Selling fee
Typical % of sale price
Real estate agent commission
5.8%
Staging and prep costs
1%-4%
Inspections and repairs
varies
Title, settlement, and taxes
1%-3%
Seller concessions
0%-6%
Start with a home value estimate
A quick online price estimate can be a helpful starting point to orient yourself in the process. Using recent sales records, market trends, and your home’s latest selling price, HomeLight’s Home Value Estimator provides a preliminary range of value for your property in under two minutes. Enter your address to get started. It’s fast, and it’s free.
Real estate agent commission (5.8%)
One of the first things you should do when you decide to sell your home is hire a top local agent. Research shows an agent’s expertise makes a big difference: In 2023, agent-assisted sellers sold their homes for a median of $405,000, compared to $310,000 for FSBO sellers.
If you work with a real estate agent, you’ll need to pay a commission for their assistance in pricing your home, marketing it to the masses, and negotiating with the other parties in order to get you the best possible price and terms, among other services.
According to HomeLight’s transaction data, the national average real estate agent commission is 5.8% of the property sales price. That commission covers the listing agent and buyer’s agent fees. (It’s customary for the seller to pay both.)
To access commission data specific to your area, consult HomeLight’s commission calculator and enter your city.
How is your commission divided between agents?
Your real estate agent’s commission is not only split between the buyer and seller agents, but also their respective brokerages. Every agent has an agreement with the brokerages in which they hold their real estate license as to how their commission is split.
For example, say you sell your home for $300,000 with a 6% commission rate and each agent has a 60/40 split agreement with their brokerages. That puts your commission at 18,000. Here’s how that will break down:
Seller’s agent: $5,400 (60% of their $9,000 commission share)
Seller’s broker: $3,600 (40% of their $9,000 commission share)
Buyer’s agent: $5,400 (60% of their $9,000 commission share)
Buyer’s broker: $3,600 (40% of their $9,000 commission share)
