How Expensive Is It to Sell a Home?

Dated: November 1 2021

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Here’s a breakdown of how much a successful home sale will cost you.

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Selling your home can bring some sweet profits, but not every dime goes into your pocket. What does it really cost to sell a home?

For starters, your agent’s commission will be about 6% of your sales price. It is negotiable, so it does vary a little bit, but 6% is the average. On a $600,000 home, that’s about $36,000. That’s a lot of money, but don’t think your listing agent is walking off and enjoying that lump sum.

The agent that brings your buyer shares that commission with your listing agent right down the middle. Then each brokerage takes their respective piece. Then what’s left comes to the agent. When we get our commission, it’s pre-taxed, so we have to put at least a third of it aside for Uncle Sam.

Your listing agent’s commission covers all the time and services involved in the entire process, including:

  • Initial consultation
  • MLS entry
  • Print and digital marketing plan
  • Signs
  • Inspections
  • Home staging

Once we have offers come in, we’re also negotiating terms, coordinating the transaction, legally reviewing the file, coordinating the closing, and more. There are a lot of moving pieces.

"Do you really want to give up 20% to save 3%?"

While buyers pay more closing costs, you can expect to pay an additional 2% towards your closing costs as well.

Now let’s address the giant elephant in the room. In this hot market, a lot of homeowners think that selling their own home is the way to go, but what does it look like financially? 

You may be saving on your agent’s commission, but you’re going to have to pay the buyer’s agent their 3%. Beyond that, the average sale price for an FSBO listing is 20% lower than homes that are working with a licensed Realtor. Do you really want to give up 20% to save 3%? It’s the largest financial transaction of your life, and you don’t want to leave it to chance to save a quick buck.

If you have any questions about selling your home or what we can do to help you get it sold for top dollar, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon. 

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Sullivan Group Real Estate

Julie and Morgan are a mother-daughter duo making up the Sullivan Group! We are experts on the cities, towns, and neighborhoods as well as closely connected to the people who live within those limits.....

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