Selling a home is exciting…
…but it can also cost you way more than you think. From hidden costs sprinkled throughout the process that suck sellers in like worms on a hook — they add up. In fact, selling costs top $67,245 on average. That’s right. You read that correctly. More than triple what most people think they’ll spend.
Here’s the good news:
When you know what to expect, you can budget accordingly and avoid the surprise most sellers feel when they see the closing day tally.
Why Sellers Get Blindsided By Costs
Buyers get hung up on the sale price of their home and overlook what’s deducted prior to the cheque hitting the bank.
That’s a big mistake.
According to new research, 55% of sellers were surprised by how high selling costs turned out to be. Even more alarming is that 41% of sellers failed to budget for the sale altogether. Nearly half of homeowners go into the selling process completely blind.
The result?
They wind up being cash poor, rushed, and leaving thousands of dollars on the table. Even homeowners that budget typically budget incorrectly – about 18% of sellers regret how they budgeted. Creating a comprehensive budget before listing is the number one way to prevent this.
The Real Cost Of Moving And Storage
One expense that sellers often overlook is moving and storage. Renting a truck, paying movers, purchasing packing materials, and temporary storage can really add up.
Here’s a rough breakdown of what to expect:
- Local movers: $800 – $2,500 depending on home size
- Long-distance moves: $4,000 – $10,000+
- Packing supplies: $200 – $500
- Storage units: $50 – $300 per month
You might not think you need storage…
Most sellers will. You need somewhere to stage your home (and store all your clutter) when it’s on the market or being shown. If you sell before you buy, you’ll need short-term storage for your furniture too. Storage units in Arizona are a popular choice if you’re in the Southwest. They typically offer climate controlled units to keep your furniture safe from the desert temperatures. Budget for moving and storage costs early so they don’t become a panicked last-minute expense.
Pre-Listing Repairs And Improvements
Want to know the single biggest hidden cost of selling a home?
Repairs and upgrades. The average home seller spends just under $21,000 on pre-listing repairs alone. That’s a pretty big chunk of change most people just aren’t accounting for.
The common repairs that sellers get hit with include:
- Painting (interior and exterior)
- Roof repairs
- Plumbing fixes
- HVAC servicing
- Landscaping and curb appeal
- Flooring replacement
You don’t have to fix everything…
However, you do need to make repairs on the major issues a buyer or inspector will notice. In fact, about 85% of sellers end up making an unforeseen repair as well. Choose one or two cosmetic updates that will increase curb appeal, then allocate your budget to repairs that can kill a sale. Neglecting necessary repairs is the quickest way to drop thousands off your bottom line.
Staging Costs That Sneak Up On You
Staging your home can help it sell quicker and for more money. However it can be expensive.
Staging costs average $1,844 per 2025 data. That’s what sellers spend on average, but most fall between $832 and $2,927. Keep in mind this is just for a basic package.
Staging costs typically include:
- Consultation fees: $150 – $600
- Furniture rental: $500 – $1,200 per month
- Decor and accessories: $200 – $500
- Setup and removal: $300 – $700
Empty homes are the most expensive to stage because you have to rent and deliver everything. If you have furnishings in your home you can cut costs by staging around them and decluttering.
There’s another option too…
Virtual staging costs significantly less than traditional staging. Virtual staging involves inserting furniture into pictures of your vacant spaces. While it won’t impress buyers in person, it will save you thousands on marketing pictures.
Closing Costs And Agent Commissions
Closing costs are probably the biggest expense that you’ll face when selling a home.
Between transaction fees, transfer taxes and pre-sale fees, closing costs run 6-10% of your home’s selling price. If you sell a home for $400,000, that’s $24,000 to $40,000 walking out the door.
The main closing costs include:
- Agent commissions (5-6% of sale price)
- Title insurance
- Escrow fees
- Transfer taxes
- Attorney fees (in some states)
- Prorated property taxes
Agent commissions make up the largest percentage of costs. On average, commissions are 5-6% of your home’s selling price, divided between the buyer’s agent and listing agent. Fees vary by state so be sure to look up what’s required in your state. Some sellers cut costs by trying to sell on their own (“for sale by owner”), but FSBO sellers only saw a profit 68% of the time while agent assisted sellers saw a profit 84% of the time.
Carrying Costs While Your Home Sits
Here’s a cost most sellers don’t even know exists…
Every month your home stays on market is money out of your pocket. Extra months add $3,000+ in carrying costs. This number will vary depending on your unique situation. Some homes cost owners upwards of $6,000/month.
These carrying costs include:
- Mortgage payments
- Property taxes
- Homeowners insurance
- Utilities
- HOA fees
- Basic upkeep and lawn care
Sell your home in 4 months instead of 2 and you could find yourself $12,000+ in unexpected expenses. Proper pricing from day one can make all the difference.
One of the biggest mistakes you can make is pricing your home too high to “see what the market will bear.”
The Bottom Line
Selling your home is never as easy as “sale price minus mortgage equals profit”. Costs of selling can devour a large portion of your equity if they’re unexpected.
To quickly recap, make sure to budget for:
- Moving and storage
- Pre-listing repairs and improvements
- Staging costs
- Closing costs and agent commissions
- Carrying costs while your home sits
Individually each of these can amount to thousands of dollars. When you total it up, it’s easy to understand how sellers easily overspend. The solution? Put together an accurate budget before you list so there are no surprises at closing.
