How Much Does It Cost to Sell a House? A Complete Breakdown

Selling a house typically costs between 6% and 10% of the sale price once commission, closing costs, and other selling expenses are included. The exact amount depends on where you live, the value of your home, and the terms negotiated with the buyer.

Many homeowners focus on what their home might sell for. The more important number is often how much money is left over after the sale. Understanding these costs before listing a home can help set realistic expectations, avoid surprises at closing, and provide a clearer estimate of the equity a seller will walk away with.

Check your market's current List or Wait Score for free to see how conditions in your area compare with the rest of the country before diving into the cost details below.

The Biggest Costs of Selling a House

Most seller expenses fall into a handful of categories. Some are unavoidable, while others depend on local market conditions or decisions made during the selling process.

Real Estate Commission

For many homeowners, the largest expense is the commission paid to real estate professionals involved in the transaction.

Commission rates are negotiated and vary by market, brokerage, and the services provided. There is no standard commission rate in the United States, but because this is often the largest selling expense, it is worth discussing with any agent interviewed for the job.

Nationally, commission rates vary, though ListOrWait's calculator uses 5.70% as its baseline, reflecting a recent national average combining listing agent and buyer agent commission. For example, on a $450,000 home sale, a 5.70% commission would total approximately $25,650.

Commission is typically deducted from the sale proceeds at closing rather than paid out of pocket beforehand.

Seller Closing Costs

In addition to commission, sellers often pay a variety of closing costs. These can include:

• Title and escrow fees
• Recording fees
• Transfer taxes, where applicable
• Attorney fees in states that require legal representation
• HOA document or transfer fees
• Outstanding property taxes or utility balances

Some of these expenses are dictated by state or local law, while others are negotiated between the buyer and seller. Nationally, seller closing costs vary, though ListOrWait's calculator uses 1.0% as its baseline, reflecting a recent national median for the seller's share of closing costs.

A full breakdown of these fees is available in Selling House Closing Costs Explained: What Sellers Actually Pay.

Repairs and Buyer Negotiations

Even if a home is in excellent condition, buyers frequently request repairs after the home inspection.

These requests can range from replacing a broken appliance to repairing a roof, HVAC system, plumbing issue, or electrical concern.

Sometimes the seller completes the repairs before closing. Other times, the buyer accepts a credit instead.

For example, a buyer may request a $4,000 credit after discovering the home's water heater is near the end of its expected life. Rather than replacing the unit before closing, the seller may simply reduce their proceeds by that amount.

The amount ultimately paid depends on negotiations and the strength of the local housing market.

Preparing a Home for Sale

Many homeowners also spend money preparing their property before listing.

These expenses might include:

• Interior painting
• Landscaping
• Professional cleaning
• Minor repairs
• Carpet cleaning or replacement
• Professional photography
• Home staging

Not every improvement produces the same return, and some projects cost more than they are likely to add in value. In many cases, simple maintenance and improved curb appeal may provide more value than large renovation projects completed immediately before listing.

What About the Mortgage?

One expense that surprises some sellers is not really a selling cost at all.

If a homeowner still owes money on their mortgage, the remaining loan balance is typically paid off during closing.

Suppose a home sells for $500,000 and the remaining mortgage balance is $275,000.

The mortgage payoff does not represent a fee. Instead, it simply satisfies the loan before the seller receives their remaining equity.

Many homeowners confuse mortgage payoff with selling expenses because both reduce the amount received after closing.

Could a Seller Owe Capital Gains Tax?

For many homeowners selling their primary residence, federal tax law provides a substantial capital gains exclusion if certain ownership and residency requirements are met.

However, not every seller qualifies, and tax situations vary depending on factors such as appreciation, previous home sales, investment properties, inherited homes, or changes in tax law.

Because tax rules are highly individual, it is worth understanding how they apply before listing a home. Capital Gains Tax on Selling Your Home: What Actually Applies to You explores this topic in more detail.

Anyone with questions about their personal tax situation should consider consulting a qualified tax professional.

A Simple Example

Assume a home sells for $450,000.

The seller has:

• Commission at the national baseline: 5.70% ($25,650)
• Closing costs at the national baseline: 1.0% ($4,500)
• Repair credit to buyer: $3,000
• Home preparation expenses: $2,000

Total selling expenses:

$35,150

If the seller also owes $250,000 on their mortgage, estimated proceeds before taxes would look like this:

Sale price: $450,000

Minus selling expenses: $35,150

Minus mortgage payoff: $250,000

Estimated proceeds: $164,850

This example is simplified, but it illustrates why looking only at a home's market value does not tell the whole story.

How to Estimate Net Proceeds

The easiest way to estimate how much money a sale might generate is to calculate:

Estimated Sale Price

Minus

• Negotiated commission
• Seller closing costs
• Repair credits
• Home preparation expenses
• Mortgage payoff
• Any applicable taxes or liens

Equals

Estimated Net Proceeds

Because each market is different, these numbers can vary significantly from one transaction to another. Enter an address on ListOrWait to generate a personalized equity estimate using current home value data and these cost benchmarks.

Reality Check

Even if selling costs are lower than expected, that does not necessarily mean selling is the right financial decision today. Other factors to weigh include moving expenses, the cost of purchasing a next home, current mortgage rates, potential tax implications, and long-term financial goals. Selling costs are only one part of the overall picture.

The Bottom Line

Selling a home involves more than accepting an offer and collecting a check. Between commissions, closing costs, preparation expenses, buyer negotiations, and a remaining mortgage balance, several factors influence how much money a seller ultimately receives.

Understanding these costs before listing a home can help sellers plan more confidently, compare different selling scenarios, and avoid unexpected surprises during closing.

Housing data can provide useful context, but national trends do not necessarily reflect conditions in any single neighborhood. Real estate markets are highly local, and factors such as inventory levels, buyer demand, and pricing trends can vary significantly from one community to another. Before making decisions about selling a home, consider speaking with a local real estate agent who understands current market conditions in your area.