How Much Do Sellers Pay in Closing Costs?

How Much Do Sellers Pay in Closing Costs?

Selling a home sounds like it should be an income-only situation.  Unfortunately, it’s nearly impossible to sell a house without any fees or costs popping up.  Here are the top things that sellers have to cover and how it all adds up when you have to close the deal.

Agent or Realtor Fees

You can forego this fee, but these professionals can offer a lot of help when selling.  Realtors and real estate agents can help guide you through the listing, walk through buyers so that you don’t have to, and give you the chance to sit back and let someone else deal with the offers and stress.

Unfortunately, this help can come at a steep price.  Realtors and agents often charge three to six percent of the cost of the home.  For a $200,000 house, that can add up to $6,000-$12,000.  Although their help is fantastic, this is a price that may be hard to stomach.

Repairs Needed

Even if you think you’re in the clear once an inspection has said the house is ready to sell, there may be costs that pop up.  Buyers may request you put in a fence before they close the deal, or they may ask that you hire a cleaning service or even replace windows.  These costs are all part of negotiating, and not every seller has to face them down.

Unfortunately, these costs can rack up.

If you’re unsure about whether the changes they’re asking you to do are reasonable, consider if you’re getting any other offers that are competitive and not asking for so much.  You don’t have to bend to every whim of a buyer.

Sellers Pay in Closing Costs
Sellers Pay in Closing Costs

Staging

Staging a home should be part of the charges that go into every seller closing costs calculator.  Homes that are staged and cleaned up well sell faster and often for more money.  Staging gives homeowners the chance to show off the home in a pristine and personality-free way that allows buyers to picture themselves in the house.

This can add up, though.  Many staging companies charge monthly rent on the furniture you use, so it’s a good idea to get the most out of it. 

Taxes and Fees

There are plenty of taxes and fees that come out of selling your home.  From the cost of paying for an inspection to the capital gains taxes, you’ll have to spend on the property.  These are a smaller fraction of the costs that will pop up when you’re selling, but they still quickly build upon themselves, so it’s essential to have savings set aside so that you can handle the expense.  Although you can pay out of the earnings you make from selling it: many still owe so much to their mortgage that these expenses can be a pain.

Selling a home isn’t cheap. Whether you’re trying to save money by listing it yourself, or you cut out stage in an attempt to cut that price out: the average home seller pays 4-8% of the cost of the home.  Unfortunately, this means you may have to save up to sell your house, so those funds are immediately available.

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