The Cost of Selling a Home: What First-Time Sellers Need to Know

Selling a home for the first time is exciting. It often marks a big life transition and can bring in a significant chunk of money. But if you're new to the process, you might assume that whatever price your home sells for goes straight into your bank account.

But unfortunately that’s not the case.

In reality, there are a number of costs involved in preparing and selling a home and they can add up quickly. On average, most sellers walk away with about 85% to 90% of their home’s final sale price depending on the local market and choices made during the process. That means on a $400,000 home sale, you might keep somewhere between $340,000 and $360,000 before paying off your current mortgage.

I’ll break down where the rest goes and how a good real estate agent can make a big difference in achieving the highest net profit…

Home Staging and Preparation

First impressions matter. Before your home ever hits the market, there’s often work to be done. Buyers in 2025 are savvy; they expect clean, well-maintained homes.

Typical pre-sale expenses can include:

• Repairs: Fixing anything broken from leaky faucets to aging roofs.

• Painting: A fresh coat of paint can do wonders for first impressions.

• Landscaping: Curb appeal matters. Trimming trees, adding mulch, or reseeding the lawn can attract more buyers.

• Staging: Professionally staging a home can cost anywhere from $1,000–$3,000 or more but staged homes often sell faster and for more money.

• Professional Photography: Expect to pay $150–$500 but it’s worth every penny in today's online-first world.

Having a reliable real estate agent is key here; they’ll help you prioritize which updates will actually yield a return and connect you with trusted contractors and professionals.

Realtor Commissions

This is often the biggest cost of selling a home.

In 2025, real estate agent commissions generally range from 5% to 6% of the final sale price. This fee is typically split between your listing agent and the buyer’s agent. On a $400,000 sale that would mean $20,000 to $24,000 in commissions.

While it might sound like a lot, a great realtor more than justifies their cost. They don’t just list your home; they market it, host showings, manage negotiations, navigate contracts, and help avoid costly mistakes. And they manage the myriad of details involved in closing the sale. Without that expertise, it’s easy to lose thousands in improper pricing, poor negotiations, or missed legal details.

Closing Costs for Sellers

Homebuyers pay the bulk of closing costs but sellers have a few expenses here too:

• Title Insurance (Owner’s Policy): Depending on your state, sellers often pay for the buyer’s title insurance. This can range from $500 to $2,000.

• Escrow Fees: Shared with the buyer, these can range from $500 to $2,000 or more.

• Attorney Fees: In some states, hiring a real estate attorney is required. Expect to pay around $500 to $1,500.

• Transfer Taxes: These vary widely by state and county; some are minimal while others can run several thousand dollars.

• Prorated Property Taxes and HOA dues (if applicable): You’ll need to cover your share up until the closing date.

Your realtor can guide you through these fees and help you understand what you're paying for.

Note: Further down you’ll find a sample CD showing these costs and how they play out.

Home Inspection Repairs and Buyer Credits

Once your home is under contract, the buyer will likely hire an inspector. If issues come up with plumbing, electrical, or structural, you might need to fix them or offer a credit.

Depending on the findings, you could be looking at a few hundred to several thousand dollars. A good agent will help negotiate fairly and avoid overpaying for repairs or giving away too much in credits.

Note: Conducting pre-sale inspections can identify issues early that might scare off buyers or lower your home's value. Expect to spend about $300 to $500 on those. This proactive step can save you from unexpected costs and can be a selling point for buyers.

Mortgage Payoff and Prepayment Penalties

If you still owe money on your mortgage, that balance will be paid out of your sale proceeds. It’s not an out-of-pocket expense, but it does reduce the amount you keep from the sale. Make sure to:

• Check your payoff amount, which may include a few days’ interest beyond your last mortgage payment.

• Ask your lender about prepayment penalties, though these are less common.

Moving Costs

Once your home is sold, you have to, well... move. Whether you hire professional movers or rent a truck, moving expenses can range from $500 to $16,000, depending on the distance and volume of belongings.

• Local moves typically cost about $500–$3,000.

• Long-distance moves can go well beyond $16,000.

Don’t forget to budget for packing supplies, storage (if needed), and cleaning fees.

Note: see my blog post Rented Truck Driver about an excellent service for long distance moves. I used them myself to move from AZ to MI and they were an absolute godsend! So much simpler, better, and literally half the cost.

So, How Much Will You Keep?

As mentioned earlier, most sellers in 2025 take home about 85–90% of their home’s final sale price before mortgage payoff. The exact number depends on:

• The condition of your home

• Local market trends

• Negotiation outcomes

• Whether you're working with a skilled agent

Here’s a sample CD (Closing Disclosure) from the CFPB that outlines the general costs to a seller. To the right on pages 2 and 3 you’ll find the Seller-Paid items and the “Due from Seller at Closing” - section N. Of course, these amounts will vary widely depending on the sale price of your home and other factors; this is a sample of what costs to expect. You may remember signing this document when you purchased your home; this sample shows both the buyer and seller costs (the seller CD you’ll receive shows only seller costs).

The Value of a Good Realtor

It’s tempting to focus on cutting costs by selling your home yourself or skipping services but in reality the right agent can help you net more money even after their commission.

They’ll price your home correctly, market it professionally, guide you through inspections and offers, and steer you around costly pitfalls. Think of them as your project manager, negotiator, and legal safety net all in one. They not only help you navigate these costs but also work to ensure your home sells for the best possible price in the least amount of time.  

If you’re a first-time seller, don't go it alone. Selling a home is a big financial transaction, possibly the biggest of your life so far, and it’s worth doing right.