When homeowners decide to sell, many focus on their home’s value — what they’ll make when it sells. But what they often forget is: selling isn’t free.
From agent commissions to closing costs and prep work, here are the hidden expenses most sellers don’t plan for — and how to budget wisely.
1. Agent Commissions
This is the biggest seller-side cost. Most listing agents charge 5%–6% of the sale price, which is usually split between your agent and the buyer’s agent.
Example: On a $400,000 home, expect to pay $20,000–$24,000 in commissions.
Tip: Commissions are negotiable — and some sellers use discount brokers or flat-fee MLS listings, but those often come with fewer services.
2. Staging and Home Prep
First impressions matter — and buyers often make decisions within seconds of walking in. That’s why home prep is so important.
$200–$500 (professional cleaning) - Staging (partial or full): $500–$2,000+ depending on home size
- Landscaping: $100–$1,000 for curb appeal
- Paint and touch-ups: $300–$1,500
Tip: Talk to your agent — they may have partnerships with staging companies or offer basic services included in their commission.
3. Repairs and Upgrades
Buyers will inspect your home and may request repairs. Some sellers do them in advance to avoid issues during negotiations.
- Pre-listing inspection: $300–$600
- Minor repairs: $500–$2,500 (leaky faucets, door fixes, lighting, etc.)
- Major repairs (roof, foundation, HVAC): varies significantly
Tip: Budget 1%–2% of your home’s value for potential repairs — even if it’s in great shape.
4. Seller Closing Costs
These vary by state and market, but common expenses include:
- Title insurance (for buyer): $1,000–$2,500
- Escrow fees: $500–$1,000
- Transfer taxes: Varies — check local rates
- Attorney fees (in some states): $500–$1,500
Tip: Ask your agent or closing company for a seller net sheet — it outlines expected deductions from your sale price.
5. Mortgage Payoff (Including Prepayment Penalties)
If you still owe on your mortgage, the balance must be paid off at closing. Your lender may also charge:
- Interest through the end of the month
- Prepayment penalties (less common but still possible)
Check your latest mortgage statement or call your lender for a payoff estimate.
6. Home Warranty for the Buyer
Some sellers offer a one-year home warranty to attract buyers or sweeten a deal. These cover appliances and basic systems post-sale.
Cost: $400–$700
Tip: Ask your agent if this is common in your market — it may give buyers peace of mind and reduce post-sale complaints.
7. Temporary Housing or Moving Costs
If your home sells before your next one is ready, you might face:
- Short-term rentals or hotel stays
- Storage unit fees
- Moving company costs: $1,000–$5,000+
Tip: Build in flexibility or negotiate rent-back terms with your buyer if you need more time.
8. Capital Gains Tax (Possibly)
Most homeowners qualify for the capital gains exclusion — $250,000 (single) or $500,000 (married) of profit is tax-free if:
- You lived in the home 2 of the last 5 years
- It was your primary residence
If not, talk to a tax pro. You may owe capital gains taxes on your profit.
Quick Seller Cost Summary
- Agent commissions: ~6%
- Repairs/staging: 1%–3%
- Closing costs: 1%–2%
- Moving and temp housing: varies
Total estimate: 8%–12% of your home’s sale price — before mortgage payoff or taxes.
Bottom Line
Yes, you might sell for $400,000 — but that doesn’t mean you walk away with $400,000. Knowing what’s coming helps you price your home smartly, negotiate more confidently, and avoid unpleasant surprises.
Need help estimating your net proceeds? At Trusted in Town, we’ll connect you with a vetted local expert who can break it all down for your market and home — no pressure, no guesswork.
Contact us here to get started.