Selling a home isn’t free — between commissions, closing costs, repairs, and taxes, you’ll spend significantly more than most people expect. Here’s every cost broken down.
Total Cost to Sell: Quick Summary
| Cost Category | Percentage of Sale Price | On a $400K Home |
|---|---|---|
| Agent commissions | 5-6% | $20,000-$24,000 |
| Seller closing costs | 1-3% | $4,000-$12,000 |
| Pre-sale repairs/prep | 1-2% | $4,000-$8,000 |
| Staging | 0.25-0.5% | $1,000-$2,000 |
| Moving costs | — | $1,000-$5,000 |
| Total | 8-10% | $30,000-$51,000 |
Capital gains tax is additional if applicable.
Agent Commission Breakdown
After the 2024 NAR settlement, commission structures have shifted:
| Commission Model | Seller Pays | Buyer Agent | Total |
|---|---|---|---|
| Traditional (pre-2024) | 2.5-3% | 2.5-3% | 5-6% |
| Post-settlement (typical) | 2.5-3% | 0-3% (negotiable) | 2.5-6% |
| Flat-fee listing | $3,000-$5,000 | 0-3% | $3,000-$17,000 |
| FSBO (For Sale By Owner) | $0 | 0-3% | $0-$12,000 |
| Discount broker | 1-1.5% | 0-3% | 1-4.5% |
Commission by Home Price
| Sale Price | 5% Commission | 3% (seller only) | Flat Fee ($4,000) |
|---|---|---|---|
| $250,000 | $12,500 | $7,500 | $4,000 |
| $350,000 | $17,500 | $10,500 | $4,000 |
| $400,000 | $20,000 | $12,000 | $4,000 |
| $500,000 | $25,000 | $15,000 | $4,000 |
| $750,000 | $37,500 | $22,500 | $4,000 |
Seller Closing Costs
| Cost | Typical Amount |
|---|---|
| Title insurance (owner’s policy) | $1,000-$2,500 |
| Transfer tax / recording fees | $500-$5,000 |
| Attorney/settlement fees | $500-$1,500 |
| Prorated property taxes | Varies |
| HOA transfer fees | $200-$500 |
| Escrow fees | $500-$2,000 |
| Outstanding liens/payoffs | Varies |
| Wire transfer fee | $25-$50 |
| Total closing costs | $3,000-$12,000 |
Transfer Tax by State
| State | Transfer Tax Rate | On $400K Sale |
|---|---|---|
| Texas | None | $0 |
| Florida | $0.70 per $100 | $2,800 |
| California | $1.10 per $1,000 | $440 |
| New York | $4.00 per $1,000 | $1,600 |
| Pennsylvania | 1-2% (split) | $2,000-$4,000 |
| New Jersey | Variable (0.4-1%) | $1,600-$4,000 |
| Illinois | $0.50 per $500 | $400 |
Pre-Sale Preparation Costs
| Expense | Average Cost | Worth It? |
|---|---|---|
| Deep cleaning | $200-$500 | ✅ Always |
| Carpet cleaning/replacement | $500-$3,000 | ✅ Yes |
| Interior paint (neutral colors) | $1,500-$4,000 | ✅ Yes |
| Landscaping/curb appeal | $500-$2,000 | ✅ Yes |
| Minor repairs (fixtures, caulking) | $300-$1,000 | ✅ Yes |
| Pre-listing inspection | $300-$500 | ⚠️ Optional |
| Professional staging | $1,000-$3,000/month | ⚠️ In slow markets |
| Photography/videography | $200-$500 | ✅ Always |
| Major repairs (roof, HVAC, foundation) | $5,000-$20,000+ | Depends on buyer negotiations |
Mortgage Payoff Costs
| Item | Typical Cost |
|---|---|
| Remaining mortgage balance | Varies |
| Prepayment penalty (if applicable) | 0-2% of balance |
| Per diem interest (closing month) | $20-$60/day |
| Payoff statement fee | $25-$100 |
Capital Gains Tax on Home Sale
| Situation | Taxable? | Details |
|---|---|---|
| Lived in home 2+ of last 5 years | $250K excluded (single) / $500K (married) | Most sellers pay $0 |
| Gain under $250K/$500K exclusion | ❌ No tax | No reporting needed |
| Gain over exclusion | ✅ Taxed | 0%, 15%, or 20% capital gains rate |
| Owned less than 1 year | ✅ Short-term | Taxed as ordinary income (10-37%) |
| Lived in home less than 2 years | ✅ (partial exclusion may apply) | Prorated if due to job, health, or unforeseen |
| Rental/investment property | ✅ Fully taxed | No primary residence exclusion |
Capital Gains Tax Example
| Scenario | Purchase Price | Sale Price | Gain | Exclusion | Taxable Gain | Tax (15% rate) |
|---|---|---|---|---|---|---|
| Single, lived 3+ years | $250,000 | $450,000 | $200,000 | $250,000 | $0 | $0 |
| Married, lived 3+ years | $300,000 | $700,000 | $400,000 | $500,000 | $0 | $0 |
| Single, high appreciation | $200,000 | $550,000 | $350,000 | $250,000 | $100,000 | $15,000 |
| Investment property | $200,000 | $400,000 | $200,000 | $0 | $200,000 | $30,000 |
Net Proceeds: What You’ll Actually Keep
| Sale Price | Remaining Mortgage | Selling Costs (9%) | Net Proceeds |
|---|---|---|---|
| $300,000 | $180,000 | $27,000 | $93,000 |
| $400,000 | $240,000 | $36,000 | $124,000 |
| $500,000 | $300,000 | $45,000 | $155,000 |
| $600,000 | $350,000 | $54,000 | $196,000 |
| $750,000 | $400,000 | $67,500 | $282,500 |
Key Takeaways
- Expect to pay 8-10% of the sale price in total selling costs — $32K-$40K on a $400K home
- Agent commissions are the largest cost at 5-6%, though alternatives can reduce this significantly
- Pre-sale repairs and staging typically cost $5K-$10K but often help homes sell faster and for more
- Most homeowners pay $0 in capital gains tax thanks to the $250K/$500K exclusion
- Transfer taxes vary widely — from $0 in Texas to $4,000+ in NJ on a $400K sale
- See our average closing costs data for detailed breakdowns by state
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy