Everyone knows selling a home is no walk in the park. It’s not just about putting up a sign and waiting for buyers to come knocking. This year, selling your home can cost you nearly $55,000, according to a recent survey from Clever Real Estate. And let’s be honest, many homeowners are scratching their heads trying to figure out how things ended up costing so much.
Imagine you’re excited about selling your home. You think about all those family dinners, movie nights, and quiet mornings you’ve had there. But the reality sinks in when you realize selling isn’t just about getting money, it’s about shelling out quite a bit to make the sale happen. A staggering 64% of sellers reported they were shocked by the total expenses incurred through selling.
The breakdown paints quite the picture. Sellers are faced with commissions, repairs, moving fees, and closing costs, among other expenses. Specifically, they are expected to pay around $11,136 for the listing agent’s commission and about $10,467 for the buyer’s agent’s commission. Throw in repairs and upgrades averaging $10,000, closing costs climbing to $8,000, and some buyer concessions of $7,200, and suddenly the numbers add up fast. Even marketing efforts cost nearly $2,300 and staging the home can take up another $2,263. When you add it all together, it quickly adds up to about $54,616 on average per home sale.
Despite going through what feels like the equivalent of selling your child’s belongings at a yard sale, most sellers still walk away with regrets. A staggering 89% of sellers wish they had handled things differently. Many believe they could have pocketed $50,000 more, had they taken another approach. Regrets here include not getting valuable advice from agents and poor communication throughout the sales process.
Interestingly, around 21% of sellers say they regretted paying their agents the hefty commissions. Several of these sellers voiced frustrations, saying things like they didn’t think their agents offered them adequate service. About 57% of those sellers sensed they were dished out bad advice, with many claiming they felt their agents made mistakes or failed to communicate properly.
This begs the question: Is it better to sell with or without an agent? Some might think skipping the agent could save them money, but more often than not, it leads to hefty mistakes. Interestingly enough, sellers who operated without agents ended up making significantly less—an average of $71,000, compared to those who employed agents, who netted around $105,000. Sounds tempting to save on those fees, but often it can hurt sellers financially.
The job of selling homes is complex. It requires not only knowledge of the legal requirements but also to appeal to prospective buyers. About 46% of sellers who went at it alone reported making legal errors during their transactions. The stakes are high, and sometimes, the little things like not disclosing repairs can burn sellers down the road.
On the brighter side, some recent changes may ease the strain on future sellers. A lawsuit against the National Association of Realtors (NAR) aims to shift the burden of the buyer’s agent’s commission back to buyers. Naturally, prospective sellers are left wondering how much this will genuinely impact their overall sales costs. Real estate agent Brett Rosenthal from Philadelphia weighs in, stating, “The consequences are somewhat unknown, and everyone is guessing.” He adds he doesn’t think this change will dramatically affect expenses since homes with buyer agents often receive more attention and higher offers.
“If seller agents aren’t paying for buyer agents, they might still sell well if they manage to attract enough buyer interest,” says Rosenthal. He emphasizes properties competing for multiple buyers tends to drive up sale prices. So, even though they aren’t required, some sellers might still offer to pay buyer’s agent commissions because they foresee the sale price exceeding these costs.
Navigations through home improvements stand as another fundamental part of sales preparation. Approximately 76% of sellers invested considerable sums on repairs and renovations to attract more buyers. The median expenditure on these updates averages around $10,000. It seems logical to spruce things up, but many agents urge home sellers to consult them before making renovations. Rosenthal warns, “Many sellers waste money on upgrades only they like and don’t add value to their home.” It’s all about enhancing property appeal, but it’s key for sellers to focus on what buyers want, not just their personal preferences.
Those homeowners who made improvements didn’t just spend aimlessly. A compelling 80% took their agent’s advice on which upgrades to pursue and 67% confessed they sometimes overspent beyond their comfort zone. Interestingly, about 68% felt the upgrades paid off, saying they were worth their weight and led to increased sale prices—this shows there’s some financial wisdom to be had there.
Closing costs is another term homeowners need to become acquainted with as they lead up to selling their home. These costs encapsulate various expenses buyers might encounter after agreeing on the purchase price. They can include title insurance, credit checks, document preparation, and closing fees—basically, anything beyond just the listing price. Over the past two years, closing costs have increased rather dramatically; they averaged $6,000 back in 2022 but jumped to around $8,000 this year.
Negotiated concessions also require some attention. The average seller dished out $7,200 on these perceptions of goodwill like home warranties or price reductions on repairs, especially too entice hesitant buyers. About 89% of sellers engaged some sort of concession for buyers, but 26% wished they hadn’t offered so much. When confidence is low in the overall market, it can become tempting to toss out multiple concessions to make the sale happen quickly.
Marketing and moving costs are another significant section of this selling puzzle. Sellers may shell out approximately eight grand on these fronts; marketing includes staging expenses and cash out for professional photos—those average around $4,563. When it’s time to move, most people face average moving bills hovering around $3,250. Although these services translate to big expenses upfront, cutting corners here could diminish demand for the home and improperly reflect on the sale price. It’s true; it takes money to make money when it’s time to sell real estate.
With homeowners feeling the heat of all these rising costs, it’s clear the housing market is changing. Economic factors and shifting buyer sentiment can influence everything from pricing to desirability. Future sellers are carefully considering strategies to maximize their return and manage their costs effectively without falling prey to unexpected expenses lurking around the corner.
