3 Common Costs When Selling Your Home

Learn about the expenses that can impact your home sale profits: pre-listing, Realtor commissions, and closing costs.

Are you planning to sell your home soon? With plenty of equity in your pocket, now might be the perfect moment to cash in. But don’t forget—selling isn’t all profit. Plenty of costs can sneak up on you if you’re not prepared. Today, I’ll break down the most common expenses that come with selling a home and share some tips to help you tackle them head-on:

1. Costs before the sale. Before listing your home on the MLS, these are all the things you should do, including inspections, repairs, renovations, and cleaning. While not all of these steps are mandatory, most Realtors will recommend them if you want to get the highest price possible for your home. For example, a clean house with a few simple repairs and cosmetic upgrades will get more attention from buyers than a home listed “as is.” That’s why I always recommend having a pre-listing meeting with your Realtor to review which costs will improve your sale and fit your budget.

2. Costs of selling. These are the costs that come with the real estate transaction, such as Realtor commissions, marketing costs, and more. Depending on who your Realtor is and what they offer, commissions can range from 3% to 6%. Many Realtors also provide different commission packages, allowing you to customize the services you receive based on your budget. Other marketing costs can include Facebook ads, professional photography, and staging—though some Realtors include these items as part of their commissions.

“Selling your home isn’t all profit—there are costs you need to consider so you’re not caught off guard.”

3. Closing costs. Closing costs are transferring property ownership from one person to another. These can include title fees, escrow fees, mortgage insurance, seller concessions, notary fees, and more. While some costs, like seller concessions, can be negotiated, closing costs can vary based on the value of your property. You will generally pay between 0.5% and 1% of the total sales price in closing costs.

Many sellers get caught off guard by unexpected costs at closing, but you don’t have to be one of them. By discussing potential expenses with your Realtor upfront, you can dodge those surprises and keep more cash in your corner. Ready to turn your home into a sold sign? Contact us today at (951) 264-7544, and we’ll help you crunch the numbers and figure out precisely what you’ll need to make your home sale as smooth and profitable as possible.