Selling your home sounds simple: list it, find a buyer, and cash out. But in reality, a lot of hidden costs can chip away at your profits (sometimes tens of thousands of dollars’ worth).
In total, these hidden costs can add up to 8–10% of your home’s sale price or $30,000+ for a $400,000 home.
Whether you’re upgrading, downsizing, or relocating, here’s what sellers often overlook, and how to keep more money in your pocket.
1. Real Estate Agent Commissions: What You’ll Pay (and How to Lower It)
Estimated cost: 5–6% of the sale price
For a $400,000 home, that’s $20,000–$24,000 (often the biggest single expense when selling).
According to the National Association of Realtors, 5–6% is the standard commission rate.
How to avoid overpaying:
- Negotiate your agent’s commission. Some agents offer flexible rates or sliding-scale options.
- Explore alternatives. Flat-fee MLS listings or discount brokerages can help if you’re comfortable doing more of the legwork.
2. Closing Costs & Legal Fees
Estimated cost: 1–3% of the sale price
This includes title insurance, escrow fees, attorney costs, HOA dues and transfer fees and taxes.
Seller closing costs typically range from 3% to 6%. Source: Rocket Mortgage
How to cut costs:
- Compare service providers. Shop around for more affordable escrow and title companies.
- Split costs with the buyer. It’s common to negotiate who pays what in your contract.
3. Repairs and Pre-Sale Upgrades
Average cost: $14,000+ nationally
From paint jobs to plumbing fixes, most buyers expect a home that’s move-in ready.
A 2023 Zillow survey reports sellers spend over $14,000 on average preparing their home for sale. Source: Zillow
What’s worth it?
- Prioritize function and safety. Focus on essential repairs (leaks, electrical, roof) rather than cosmetic overhauls by a licensed contractor.
- Avoid over-improving. Renovating a kitchen right before selling? It may not pay off.
4. Home Staging and Listing Photos: Are They Worth the Cost?
Estimated cost:
- Staging: $500+ per room/month
- Professional photography: $150–$500
Staged homes sell faster and often at higher prices. Source: NAR Home Staging Report
Save without sacrificing style:
- DIY your staging. Declutter, depersonalize, and rearrange furniture for free.
- Use smartphone cameras wisely. Good lighting and angles can make a big impact.
5. Moving and Storage
Estimated cost:
- Local move: $7,600
- Long-distance move: $9,100
- Storage: ~$600 for 3 months
Moving costs continue to rise with inflation. Source: Forbes Moving Cost Guide 2024
Reduce moving costs:
- Declutter before you pack. Donate or sell unused items.
- Compare multiple movers. Booking early and during off-peak times can save hundreds.
6. Emotional Pricing Mistakes
Many sellers price too high due to sentimental value, causing longer listing times and price drops.
How to avoid it:
- Get a comparative market analysis (CMA). Your agent can pull comps to help you price smart.
- Stay objective. Treat your sale like a business decision, not a personal one.
Final Thoughts
Selling a home comes with more than meets the eye. Between agent commissions, prep work, and unexpected fees, it pays to plan ahead.
Understanding the hidden costs (and taking steps to reduce them) can mean the difference between just selling your house and walking away with real profit.
Quick Seller Checklist
Use this simple checklist to avoid getting blindsided:
Before You List
- Choose a real estate agent (make sure to explore Homie flat-fee agents)
- Set a smart asking price using market data (not emotions)
- Get an estimate of your closing costs
- Fix anything major (like leaks or electrical issues)
- Skip fancy upgrades, just stick to the basics
Get Your Home Ready
- Declutter and deep clean
- Stage your space (DIY or hire help)
- Take bright, high-quality listing photos
Plan Your Move
- Start packing early
- Sell or donate things you don’t need
- Get quotes from moving companies
- Book storage if needed
During the Sale
- Review offers carefully
- Negotiate who pays closing costs
- Stay calm: don’t overprice because of sentimental value
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-The Homie Team