January 25, 2023 8:00am EST
Question: What’s the true cost of selling a home?
Answer: Usually 7-10% of the sale price.
Here’s a DETAILED breakdown (with 2022 data):
– Agent commissions: 5% of the sale price + applicable taxes (HST), split between the listing and buyer agents.
– Lawyer fees, land transfer taxes, and other administrative costs: 1-2% of the sale price.
– Home repairs and inspection requests: $100-10,000. The most common repair on a home inspection report? Sticky doors that need adjusting. The second? Leaky faucets and shower heads.
– Moving: The average cost of a local move with a two-person team is $1,400. A cross-country move will set you back $2,000-5,000. Save on moving by grabbing a few friends and DIY.
– Interior staging and exterior landscaping: 18% of sellers’ agents said staging increased a home’s value between 6-10%. Staging and landscaping will run 2% of the sale price, making both worthy of your time and money.
– Seller concessions: To sweeten the deal, you may help a buyer with inspection fees, moving costs, or other costs. Usually, no more than 1% of the sale price.
– Home warranty: Some sellers offer buyers a warranty to cover the home leading up to closing and sometimes beyond, so the buyer knows they’re not facing repair costs as soon as they sign. A home warranty costs $300-500.
One mistake I see from sellers? Pouring money into the wrong improvements before getting an agent involved.
If you’re thinking of selling, don’t wait to get an agent’s eyes on your home — it’ll focus your efforts and help you get every dollar out of your home. Want help? Contact me today.
Want to know how much your home may sell for in this market?