How Much Does It Cost to Sell a House?

What It Costs to Sell a House, Line by Line

Five buckets cover nearly every dollar you spend to sell, and your mortgage payoff comes out of the same closing check, so sellers count it alongside the rest when they work out what they walk away with.

Is Real Estate Commission Negotiable?

Commission is usually the biggest single line on the page, and the amount is negotiable. Since the National Association of Realtors settlement practice changes took effect August 17, 2024, a listing no longer has to offer a set commission to the buyer's broker, and buyer agents sign written agreements with their own clients about how they get paid (National Association of Realtors, 2024). You negotiate what you pay your listing agent, then decide separately whether to offer anything toward the buyer's agent. Get both numbers in writing before you sign a listing agreement.

What Closing Costs Does the Seller Pay?

Seller closing costs are the transaction fees due at the closing table, and they are separate from commission. The list, and who customarily pays each item on it, depends on your state and county, so ask your title company or closing attorney for a written estimate early.

• Transfer or deed taxes, meaning a state or local tax on the transfer of title. Rates vary widely by state, and some states charge nothing at all.
• Owner's title insurance, which the seller customarily pays in many states and the buyer pays in others.
• The escrow or settlement fee, which is the title company's charge for handling the money and the paperwork, and it is often split between the two sides.
• Attorney fees, which are required in some states.
• Recording fees, charged by the county for the new deed.
• Prorated property taxes and HOA dues for the days you owned the home in the current period, plus any HOA transfer fee.
• Final utility bills, settled through escrow.

What to Budget Before the House Goes on the Market

Pre-sale spending is the one bucket you control from start to finish. It is also where sellers who are downsizing or settling a parent's estate tend to overspend, because a house lived in for 30 years always comes with a list. Think hard before a kitchen remodel, because it often doesn't return the full cost, and that is cash you could carry to the next house instead.

• A deep clean and carpet cleaning, which are the cheapest dollars you will spend anywhere in this process.
• Paint in the rooms buyers see first, in neutral colors, and only where the current color dates the house.
• Landscaping and curb cleanup. Read how curb appeal impacts home prices before you budget a bigger exterior project.
• Small repairs, meaning the sticking door, the running toilet and the light that never worked.
• Staging, which for most sellers means editing and removing furniture they already own.
• Junk removal and a storage unit if you are clearing decades of belongings.

Budget for carrying costs too. The mortgage, property taxes, homeowners insurance and utilities all keep running until closing day.

How to Calculate Your Net Proceeds

Net proceeds are what lands in your account once everyone at the table has been paid. Take your expected sale price, subtract total selling costs, then subtract your mortgage payoff. Every line is a number from your own sale, so the worksheet below shows where each one comes from. Collect them as written quotes and statements, then do the subtraction.

Working the sheet with your own figures is the only way to know what selling will cost in your situation, and it also shows you which line carries the most weight. Line 1 sets the size of almost everything below it.

Which Cost Matters Most on a $600,000 House?

Look at the worksheet again. Commission, closing costs and concessions are all percentages of line 1, so the sale price sets the size of every other line. On a $600,000 house, each 1% of price is $6,000, and that is before you count the price cut a home tends to take once it has been sitting.

The top line deserves more care than any other number here, and it is not one to leave to guesswork. The free Kelley Blue Book Homes valuation report is designed to land within 3% of the final sale price. The report is free and it's ready in minutes.

Will You Owe Capital Gains Tax on the Sale?

Many long-time owners owe nothing at all. Under IRS Publication 523, 2024, if you owned and used the home as your main residence for at least two of the five years before the sale, you can exclude up to $250,000 of gain, or up to $500,000 if you're married filing jointly and meet the tests. The exclusion generally may be claimed only once every two years.

Gain is your sale price minus selling expenses minus your adjusted basis, which is generally what you paid plus qualifying improvements, so the commission and closing costs on this page reduce the gain you would be taxed on. Keep in mind that a long-held home, a divorce or an inherited property brings wrinkles a general guide can't settle for you. Confirm your own numbers with a CPA or tax professional.

How to Cut the Cost of Selling Without Cutting Your Price

Five moves will bring your selling costs down, and none of them involve dropping your asking price.

1. Negotiate the commission in writing. Compensation is negotiable, and buyer-broker pay is now handled in a separate written agreement (National Association of Realtors, 2024).
2. Spend only where the market pays you back. Cleaning, paint and curb cleanup earn their keep, and the projects beyond those usually don't.
3. Price it correctly the first time. A home that sits takes price cuts, and those cost more than any fee on this list. How to price a home for sale walks through the mechanics, and how long it takes to sell covers the timeline.
4. Shop title, escrow and movers. All three are quotes you can put side by side and compare.
5. Compare your selling paths. A listing, a sale you handle yourself, and a cash offer carry different costs and different timelines. In select markets, you can request a competitive cash offer through Kelley Blue Book Homes and see it next to your free valuation.

Pull all five and your total selling cost comes down. The list price still matters more than any of them, because every other number on the worksheet is calculated off it.

How Kelley Blue Book Homes can help

Your cost worksheet is only as reliable as the number on line 1. Enter your address and get a free Kelley Blue Book Homes valuation report, ready in minutes, with no obligation. It accounts for condition, upgrades, remodels and real comps from your neighborhood, and it's the closest thing to an appraisal without ordering one. Kelley Blue Book Homes has valued more than 500,000 homes, powered by True Footage.

Every report comes with a connection to a vetted local agent who has already seen your valuation. That agent can help you choose a pricing and selling strategy, and walk your net proceeds line by line for your own street. Get your free report and see what your house is really worth.

The report can't be used for mortgage or lending transactions. It's designed to help you understand your home's estimated market value before your next decision.

Key Points to Remember

• The cost of selling comes from five buckets, agent commission, seller closing costs, pre-sale prep, buyer concessions and moving, and your mortgage payoff comes out of the same closing check.
• Agent commission is usually the largest line and it is negotiable in writing, with buyer-broker pay handled separately since the National Association of Realtors settlement took effect August 17, 2024.
• Seller closing costs depend on your state's rules on transfer tax, title insurance and attorneys, so ask your title company or closing attorney for a written estimate early.
• Net proceeds equal the sale price minus total selling costs minus your mortgage payoff, and the sale price line drives every other number.
• Under IRS Publication 523, 2024, many owners who lived in the home two of the last five years exclude up to $250,000 of gain, or $500,000 filing jointly. Confirm your own figures with a tax professional.

Frequently asked questions

How much does it cost to sell a house?

Your costs come from agent commission, seller closing costs, pre-sale repairs and cleaning, any concessions to the buyer, and moving. Commission is usually the largest of them. All of it comes out of the sale price before your remaining mortgage balance is paid off at closing, so fill in each line with a written quote.

What are typical closing costs for a seller?

Seller closing costs are separate from agent commission. They commonly include transfer or deed taxes, owner's title insurance, an escrow or settlement fee, attorney fees in states that require them, recording fees, and prorated property taxes and HOA dues. The exact list and who pays depend on your state and county, so ask for a written estimate.

How do I calculate my net proceeds from a home sale?

Take your expected sale price, subtract total selling costs, then subtract your mortgage payoff. What remains is your net proceeds. Use written numbers for every line, meaning your listing agreement for commission, a title company estimate for closing costs, contractor and mover quotes, and a payoff statement from your lender.

Does the seller pay the buyer's agent commission?

Not automatically. The National Association of Realtors settlement that took effect August 17, 2024 ended the requirement that a listing offer compensation to the buyer's broker, and buyer agents now sign written agreements with their own clients about how they are paid. A seller may still offer compensation as part of a negotiation, in writing.

Do I pay taxes when I sell my house?

Often no. Under IRS Publication 523, 2024, if you owned and used the home as your main residence for at least two of the five years before the sale, you can exclude up to $250,000 of gain, or up to $500,000 if married filing jointly and you meet the tests. Confirm your situation with a tax professional.

What is the cheapest way to sell a house?

Costs drop when you negotiate commission in writing, spend only on cleaning, paint and curb cleanup, shop title and moving quotes, and price the home correctly so it does not sit and take price cuts. Selling it yourself or accepting a cash offer changes the cost structure and the timeline, so compare the net proceeds of each path.