How much does it cost to sell a house?

Short answer: most sellers spend roughly 8–10% of the sale price on the total cost of selling, with agent commissions being the biggest piece at around 5.5–5.7%. On a $400,000 sale, that's $32,000 to $40,000 coming out of your proceeds before you see a dollar.

Most first-time sellers underestimate this badly. They think about the sale price, subtract the mortgage balance, and assume the rest is theirs. The reality is a stack of fees, commissions, and costs that eat a meaningful chunk of the equity. None of them are surprising once you know to expect them — so let's make sure you do.

Agent commissions: the biggest line item

Real estate commissions remain the largest cost of selling a home. In 2026, the national average total commission runs about 5.5% to 5.7% of the sale price, according to industry surveys — roughly 2.8–2.9% to the listing agent's side and a similar amount to the buyer's agent's side. On a $400,000 home, that's $22,000 to $22,800.

One thing that changed recently: after the National Association of Realtors settlement that took effect in August 2024, sellers no longer automatically cover the buyer's agent commission. Sellers now decide whether to offer buyer-agent compensation as a concession, and buyers sign written agreements with their agents upfront. In practice, most sellers still offer it — homes that do tend to attract more buyers — but it's now an explicit, negotiable choice rather than an assumption.

Commissions are always negotiable, even if agents don't advertise that. Discount brokerages and flat-fee listing services can cut the listing side significantly, sometimes to 1–1.5%. The trade-off is that you take on more of the work — pricing, marketing, showings, negotiation — yourself.

Closing costs on the seller's side

Beyond commissions, sellers pay their own set of closing costs, typically 1–3% of the sale price. These vary by state and locality, but the usual items include:

Title insurance for the buyer (in many states, the seller pays for the owner's title policy), transfer taxes or recording fees (some states and cities charge a meaningful percentage — it's worth checking your local rate specifically), attorney fees (required in some states, optional in others), and prorated property taxes and HOA dues up to the closing date.

You'll also pay off your remaining mortgage balance at closing, including any accrued interest, and possibly a prepayment penalty — though those are rare on most modern mortgages, it's worth confirming yours doesn't have one. If you have a home equity line or second mortgage, those get settled too.

Repairs, staging, and getting the house ready

The costs start before the house ever hits the market. Most sellers spend something on preparation, and it ranges from a few hundred dollars to tens of thousands depending on the home's condition.

At the minimum, expect costs for deep cleaning, minor repairs (the leaky faucet, the cracked tile, the scuffed paint that you've stopped noticing), and curb appeal basics like landscaping touch-ups. Many sellers also pay for a pre-listing inspection — a few hundred dollars that can prevent nasty surprises during the buyer's inspection.

Staging is the bigger discretionary spend. Professional staging for a vacant home can run into the thousands per month, while a consultation plus partial staging of an occupied home costs much less. Whether it pays for itself is debated, but in competitive markets, a well-presented home tends to sell faster, and time on market has its own costs.

Then there's the buyer's inspection. Even in a hot market, buyers typically ask for repairs or credits after inspection. Budget for at least a small concession — it's rare for a sale to close with zero inspection-related cost to the seller.

Carrying costs while you sell

Every month the house sits on the market, you're paying to own it: mortgage payments, property taxes, insurance, utilities, HOA fees, and maintenance. On a typical home, that's easily $2,000–$4,000 a month or more.

This is why pricing strategy is a cost decision, not just a marketing one. An overpriced home that sits for four months and then sells after a price cut often nets less than a well-priced home that sells in two weeks — once you account for four months of carrying costs plus the stigma of a stale listing.

If you've already bought your next home, the carrying costs double up. Some sellers in that position consider a bridge loan or a temporary rental, but both add expense. The cheapest move is usually to sell first or to time the two transactions close together.

Moving and the overlap

Moving costs are easy to forget in the sale math because they feel like a separate event. They're not — they're part of the total cost of the transaction. A local move might cost $1,000–$2,500 with professional movers; a long-distance move can run several times that.

There's also the overlap period: temporary housing, storage units, double utility bills, eating out because the kitchen is packed. If your closing dates don't align neatly, budget for at least a few weeks of friction costs. They're small individually and annoying collectively.

Selling without an agent: the FSBO option

For-sale-by-owner (FSBO) sales cut out the listing agent entirely, saving roughly half the total commission — typically 2.5–3% of the sale price. On a $400,000 home, that's $10,000–$12,000 staying in your pocket. You can list on the local MLS through a flat-fee service for a few hundred dollars, getting the same exposure as an agent-listed home.

The catch is that you become the agent. You'll handle pricing research, photography, showings, negotiations, paperwork, and the inspection dance — during evenings and weekends, while living in a house you're trying to keep show-ready. Sellers who are organized, comfortable negotiating, and in a straightforward market do fine. Sellers who dread confrontation or have complicated properties often find the savings aren't worth the stress.

A middle path exists: flat-fee MLS listing plus hiring an attorney for the contract and closing. You get professional handling of the legal side for a fraction of a full commission. And remember that even with FSBO, most sellers still offer compensation to the buyer's agent — a home that's harder for buyer's agents to show tends to get fewer offers.

Taxes: the one people forget until April

In the US, the sale of a primary residence comes with a generous capital gains exclusion: up to $250,000 of profit for single filers and $500,000 for married couples filing jointly, provided you've owned and lived in the home for at least two of the last five years.

Most sellers of a primary residence owe no capital gains tax at all because of this exclusion. But it doesn't cover everything. If you've owned the home for less than two years, if it was a rental or second home, or if your gain exceeds the exclusion, you could owe tax — and the rules get complicated quickly with depreciation recapture on former rentals.

Keep records of what you paid for the home plus the cost of major improvements over the years. Improvements increase your cost basis and reduce your taxable gain. This is one of those areas where a tax professional earns their fee, especially for investment properties or unusual situations.

How to keep the total down

You can't eliminate selling costs, but you can trim them. Negotiate the listing commission — interview multiple agents and compare both their rates and their marketing plans. Consider whether you need full-service representation or whether a flat-fee MLS listing plus an attorney would suffice for your situation.

Timing the market helps too. Spring listings in most US markets draw more buyers and stronger offers, which can mean selling faster (lower carrying costs) and closer to asking price. Listing in the dead of winter in a cold climate often means fewer showings and longer market time. You can't always choose when you sell, but if you can, the season is a real cost variable.

Price the home to sell promptly rather than testing the ceiling; the carrying-cost math usually favors speed. Handle the small repairs yourself if you're handy, and be selective about pre-sale renovations — most don't return their full cost, so focus on the cheap, high-impact ones like paint and landscaping.

Finally, get a net sheet from your agent or title company before you list. It estimates every cost against your expected sale price so you see your actual walk-away number upfront. Sellers who do this rarely get surprised at closing; sellers who skip it often do.

Selling a house typically costs 8–10% of the sale price once you add up commissions, closing costs, preparation, carrying costs, and the move. That's not a reason to avoid selling — it's just the real math. Run the numbers before you list, negotiate the pieces you can negotiate, and you'll keep more of your equity where it belongs: with you.