It Now Costs an Average of $55K To Sell a Home: Here’s How That Cost Breaks Down
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Prospective home sellers are often so focused on how much they can make from their home sale that they may not realize how much money it will take to get it sold. A new study from Clever Real Estate found that the average cost to sell a home is $54,616 — a significant amount that should be factored in when pricing a home.
Here’s a closer look at how that cost breaks down, where sellers may be able to save on costs and which expenses are truly worth it due to the ROI.
Also see how to calculate net proceeds after selling your home.
Why It Costs Nearly $55K To Sell a Home in 2024
Selling a home isn’t quite as simple as listing it on the market. There are a number of costs that need to be factored in before, during and after the sale. Here are the average costs a seller will contend with in today’s real estate market, according to Clever:
- Listing agent commission (on median-priced home): $11,136
- Buyer’s agent commission (on median-priced home): $10,467
- Pre- and post-listing repairs, improvements and renovations: $10,000
- Closing costs: $8,000
- Concessions to the buyer: $7,200
- Moving costs: $3,250
- Marketing: $2,300
- Staging: $2,263
Those costs total $54,616.
Ways for Sellers To Cut Costs
While the average seller will spend close to $55,000 in the process of selling their home, many of these costs are optional.
“Besides closing costs, sellers can technically choose not to pay for any of the remaining expenses — but that doesn’t mean they should,” said Jaime Dunaway-Seale, data writer at Clever Real Estate. “For example, refusing to pay the buyer’s agent could result in tens of thousands of dollars in savings, but it could limit the pool of buyers and lead to a longer time on the market.”
If you’re on a stricter budget, it’s important to think about your priorities and spend money accordingly, Dunaway-Seale said.
“If they don’t care about selling quickly, they could potentially reduce their budget for buyer’s concessions or cut back on staging and marketing expenses,” she said.
Some costs are also negotiable.
“If sellers want to save money and also work with a real estate agent, they can negotiate with their agent for a lower rate,” Dunaway-Seale said. “There are also discount agents or flat-fee services available for a lower cost.”
One cost that is easy to cut back on is moving costs, which the average seller pays over $3,000 for.
“Sellers can pick up free boxes and packing supplies from grocery stores or call in a favor from friends and family who own a truck,” Dunaway-Seale said.
Seller Expenses With the Highest ROI
Although it’s tempting to nickel and dime your way through the selling process, some expenses are worth the initial investment for the higher payoff in the end. One such expense is working with an agent. Although the average seller’s agent commission is $11,136, sellers typically make this back and then some.
“Working with a listing agent is the biggest expense for home sellers, but it’s definitely worth the cost,” Dunaway-Seale said. “Unrepresented sellers saved about $4,200 on their overall home-selling expenses, but they missed out on even bigger returns by not working with an agent. Sellers who hired an agent made $34,000 more in profit on their home sale than those who did not hire an agent.”
Another expense that can pay off is repairs.
“Making repairs can also yield big returns, but it depends on the project,” Dunway-Seale said. “That’s why it’s important to talk to an experienced real estate agent before making any changes. About 68% of sellers think their agent’s recommendations paid for themselves and 65% think they resulted in a higher sale price.”
According to Clever, the repairs with the highest ROI include garage door replacement (194% of costs recouped), entry door replacement (188% of costs recouped) and installing or repairing a manufactured stone veneer (153% of costs recouped).
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This article originally appeared on GOBankingRates.com: It Now Costs an Average of $55K To Sell a Home: Here’s How That Cost Breaks Down