The Expenses of Selling Your Home (and How to Boost Your Profits)

Let’s be honest—repairs, closing costs, and commissions can quickly accumulate when selling your house. For example, homeowners reported spending an average of $54,616 on selling their homes, according to a recent survey by eXp Realty. This amount surprised 42% of the respondents. Despite these expenses, the majority (64%) of homeowners still made a profit from selling their homes, with the median profit reaching $100,000.

With the right approach, you can boost your profits and avoid regrets. The study revealed that sellers who partnered with a real estate agent earned an average of $34,000 more than those who sold their homes independently. That’s a strong case for enlisting professional help!

Instead of simply taking my word for it, let's explore:

- The expenses involved in selling a home

- Common regrets reported by home sellers

- Tips on avoiding frequent mistakes

The Expenses of Selling a Home

Achieving the highest possible price for your home entails several costs. According to survey respondents, the average expenses were as follows:

- Listing agent commission: $11,136

- Buyer's agent commission: $10,467

- Repairs: $10,000

- Closing costs: $8,000

- Concessions: $7,200

- Moving expenses: $3,250

- Marketing: $2,300

- Staging: $2,263

Remember that each transaction is unique—some costs are negotiable (such as agent commissions), some may not be necessary for every property, and others can vary depending on the home's condition and local market conditions.

Common Regrets of Home Sellers

Regret was a prevalent sentiment among home sellers who participated in the survey, with 89% expressing some form of regret post-sale, including 92% of those who sold without an agent.

The most common regrets about the home selling process included:

- Selling too quickly (30%)

- Missing their old home (29%)

- Not selling for enough money (28%)

- Not making enough pre-listing repairs (26%)

- Making too many concessions (26%)

- Failing to stage the home (25%)

Now, let’s explore an important topic—the regrets home sellers had regarding their agents. Half of the surveyed sellers felt their agent "failed them" in some way. This underscores the critical importance of choosing the right professional to work with.

Here’s what respondents shared about their agent:

- Agent's advice fell short (57%)

- Agent made listing mistakes (53%)

- Agent lacked communication (50%)

With these regrets in mind, how can you ensure these issues don’t affect you?

How to Maximize Your Home Sale

To maximize your home sale, it begins with selecting the right real estate agent (remember, agents can help homeowners earn an additional $34,000 on their home sales). I always advise sellers to interview at least two agents. When it comes to selling your most valuable asset, having the right expert by your side is crucial. Similarly, I suggest that home buyers meet with multiple mortgage lenders.

When selecting a real estate agent, consider these key factors:

1. Expertise and Skills: Seek an agent with in-depth local market knowledge, proven negotiation abilities, and a robust marketing strategy.

2. Track Record: Request client references and examine online feedback to verify a history of client satisfaction.

3. Alignment with Your Objectives: Ensure the agent clearly understands your sale priorities and goals. Inquire about their communication approach.

4. Marketing Capabilities: Look for a comprehensive promotional plan that includes digital listings, social media outreach, and professional property imagery.

5. Fee Transparency: Discuss commission rates at the outset to prevent future misunderstandings.

The Bottom Line

Selling your home involves significant decisions. A real estate agent serves as your partner throughout this journey, and their expertise can result in a substantial difference in your financial outcome.

To schedule a free consultation or discovery call to discuss your goals, reach out to me here.