Okay, so you’re thinking about selling your house. Maybe you’ve outgrown your starter home, or you’re eyeing that cute bungalow across town. Whatever your reason, I bet there’s one big question on your mind: “How much is this gonna cost me?”

Look, I’m not gonna sugarcoat it – selling a house isn’t cheap. It’s kind of like planning a wedding. You start out thinking, “Oh, it can’t be that expensive,” and before you know it, you’re wondering if you can sell a kidney to cover the costs. (Pro tip: Don’t do that. You need both kidneys, and they’re not great at paying for houses anyway.)

But don’t panic! I’m here to walk you through the costs so you can plan ahead and avoid any “Oh crap” moments down the road. Think of me as your financially savvy friend who’s been through this before and is here to spill the tea. Ready? Let’s dive in!

 What’s the Cost of Selling a House?

Alright, here’s the deal. On average, you’re looking at spending about 15% of your home’s sale price on the whole selling shebang. I know, I know – that sounds like a lot. If you’re selling a $300,000 house, we’re talking about $45,000 in costs. 

Before you start hyperventilating into a paper bag, remember that this is just an average. Your actual costs could be lower (fingers crossed!) or higher (sorry, buddy) depending on your specific situation.

Now, let’s break this down piece by piece. Grab a cup of coffee (or something stronger – I won’t judge), and let’s get into the nitty-gritty.

Real Estate Agent Commissions

First up, the big kahuna: real estate agent commissions. This is usually the biggest chunk of your selling expenses, typically around 6% of your home’s sale price. For our $300,000 house example, that’s $18,000, split between the buyer’s and seller’s agents.

I can practically hear you groaning from here. But hear me out – a good real estate agent is like a secret weapon in your home-selling arsenal. They know all the tricks of the trade, can market your home like a pro, and have the negotiation skills of a hostage negotiator (which, let’s face it, sometimes comes in handy when dealing with buyers).

Plus, check this out: In 2019, people who used an agent sold their homes for about $120,000 more than those who went solo. So yeah, that commission might make you wince, but it could pay off big time in the end.

Closing Costs

Next up, we’ve got closing costs. These are all those annoying little fees that pop up at the end of the sale. It’s like when you’re checking out online and suddenly there’s a “handling fee” that wasn’t there before. Except, you know, a lot more expensive.

We’re talking things like prorated property taxes, HOA fees, title insurance, and a bunch of other stuff that’ll make your eyes glaze over. Sometimes, to sweeten the deal for buyers, you might offer to cover some of their closing costs too. It’s like saying, “Hey, I’ll buy you dinner if you buy my house.” Except dinner is several thousand dollars. Real estate is fun, right?

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Home Inspection

Now, let’s chat about the home inspection. This is basically a full-body check-up for your house, and it usually costs around $280-$400. Typically, the buyer pays for this, but here’s a sneaky tip: consider getting one done before you even list your house.

Why? Well, it’s like getting a peek at the test answers before the exam. You can fix any issues before buyers start poking around, which means fewer surprises and less chance of deals falling through. Plus, if everything checks out, you can use it as a selling point. “Look at this pristine inspection report! My house is basically the valedictorian of houses!”

Improvements and Repairs

Unless your house is fresher than Will Smith in Bel-Air, it probably needs a little work before you put it on the market. We’re talking about things like landscaping, updating that bathroom that’s straight out of “The Brady Bunch,” or finally fixing that wobbly step you’ve been ignoring for years.

In 2022, about 71% of sellers did some kind of improvement before selling. And if your home inspector uncovers any major issues, you might be looking at some serious repair costs – on average, about $13,234. I know, I know, it’s enough to make you consider just burning the place down and collecting the insurance money. (Don’t do that either. It’s illegal, and frankly, a bit dramatic.)

Home Staging

Next up: home staging. This is all about making your house look like it belongs in a Nancy Meyers movie. You know, the kind of place where Meryl Streep would bake bread and have a mid-life crisis.

On average, staging costs about $1,773. This might include hiring a staging company, getting everything professionally cleaned, or renting furniture that doesn’t have decade-old pizza stains on it.

But here’s some good news – sometimes your real estate agent might cover some of these costs as part of their services. It’s worth asking about, right after you ask them if they’re sure about that commission rate.

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Moving Costs

Last but not least, we’ve got moving costs. Because unless you’re planning to leave all your stuff behind and start a new life as a minimalist monk, you’re gonna need to move your things.

On average, you’re looking at about $1,715 for this. Now, you’ve got options here. You can hire movers and sip lemonade while they do all the work, or you can rent a truck and bribe your friends with pizza and beer to help you. Just remember – friends who help you move are friends who expect you to help them move someday. Choose wisely.

Remaining Mortgage Balance

Oh yeah, almost forgot – if you’ve still got a mortgage, you’ll need to pay that off when you sell. But don’t freak out! This should be covered by what you make on the sale.

Let’s say you’ve got $80,000 left on your mortgage. If you sell your $300,000 house, you’ll use $45,000 for selling expenses, $80,000 to pay off the mortgage, and you’ll still walk away with $175,000. Not too shabby! You could buy a lot of avocado toast with that. (Just kidding, millennials. Buy whatever you want with your hard-earned money.)

How Can I Reduce the Cost of Selling My House?

Feeling a bit overwhelmed by all these costs? I get it. But don’t worry, I’ve got some tips to help you keep more cash in your pocket.

First, channel your inner DIY warrior. If you’re handy with a paintbrush or know your way around a garden, you can save a bundle on repairs and staging. Just be honest with yourself about your skills. If your idea of home improvement is putting a poster over a hole in the wall, maybe leave the big stuff to the professionals.

When it comes to moving, start by decluttering. It’s like going on a diet, but for your house. The less stuff you have to move, the less it’ll cost you. Plus, you might make a few bucks selling things you don’t need. That bread maker you’ve used once in five years? Time to say goodbye.

And hey, if you’re relocating for work, don’t be shy about asking for relocation benefits. Many companies offer this perk – in fact, nearly 64% of employees got some kind of moving reimbursement in 2022. It never hurts to ask, right? Worst case scenario, they say no and you’re right back where you started.

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