Selling a home typically costs 8 to 10 percent of the sale price in combined fees and expenses, according to the National Association of Realtors. On a $400,000 home, that is $32,000 to $40,000 coming out before you see a dollar. Most sellers focus on the headline sale price and are surprised by what the closing statement actually shows. Working backward from those costs before you list is the most useful financial exercise you can do.
What is the total cost to sell a house?
The total cost to sell a house typically runs 8 to 10 percent of the sale price, according to the National Association of Realtors, covering agent commissions, seller closing costs, pre-listing expenses, and any concessions offered to the buyer. On a $400,000 sale that is roughly $32,000 to $40,000 in total outflows before your mortgage payoff.
The table below breaks the main cost categories into typical ranges for a $400,000 home sale. Individual items vary by state, negotiation, and property condition.
| Cost Category | Typical Range | Notes |
|---|---|---|
| Listing agent commission | $8,000 - $12,000 (2-3%) | Negotiable; rate varies by agent and market |
| Buyer agent commission | $8,000 - $12,000 (2-3%) | Now separately negotiated per NAR settlement |
| Title insurance (owner's policy) | $800 - $2,000 | Seller pays in some states; varies by region |
| Transfer taxes | $0 - $8,000+ | State and county dependent; some states charge 0 |
| Settlement/escrow fee | $500 - $1,500 | Paid to closing agent; varies by state |
| Attorney fee | $500 - $1,500 | Required in attorney-closing states |
| Pre-listing repairs | $2,000 - $10,000+ | Depends on property condition |
| Staging | $1,500 - $4,000 | Optional but common |
| Professional photography | $200 - $600 | Typically included by listing agent |
| Seller concessions | Negotiated | Closing cost credits offered to buyer |
| Prorated property taxes | Varies | Seller pays through closing date |
Key takeaway
Request a seller net sheet from your listing agent before signing anything. It should itemize every cost and show your estimated proceeds after the mortgage payoff. If an agent cannot or will not produce one, that is a red flag.
Real estate agent commission: what sellers pay after the NAR settlement
Agent commissions are typically the largest single cost of selling. Before the August 2024 National Association of Realtors settlement, the standard arrangement was a total commission of around 5 to 6 percent of the sale price, split between the listing agent and buyer's agent, paid by the seller through proceeds.
That structure changed. Under the settlement terms, sellers no longer make a blanket offer of compensation to buyer agents through the MLS. Buyer agent fees are now separately negotiated and documented in a written buyer representation agreement. Sellers may still offer to cover or contribute to the buyer agent fee as a negotiating point, but the automatic default is gone.
In practice, listing agent commissions in 2026 commonly range from 2 to 3 percent of the sale price, according to industry surveys, with total transaction costs (listing plus any buyer agent contribution the seller agrees to) often landing in the 4 to 5 percent range when sellers offer a buyer-side incentive.
For a deeper look at how commission negotiation works post-settlement, see Realtor Commission Explained: Who Pays What in 2026.
Seller closing costs: title, transfer taxes, and escrow fees
Beyond commissions, sellers typically pay several closing-day fees out of proceeds.
Transfer taxes. Charged by the state, county, or city when title changes hands. Rates vary enormously. Texas, Montana, and Idaho charge no transfer tax. Delaware charges 4 percent of the sale price (split between buyer and seller by convention). Pennsylvania charges 1 to 2 percent at the state level plus local taxes. New York City layered transfer taxes can total 1.425 to 1.825 percent of the price, according to published state fee schedules. Research your specific county early.
Owner's title insurance. In some states, the seller pays for the owner's title insurance policy at closing. This is a regional custom, not a universal rule - confirm with your closing agent who traditionally covers it in your market.
Settlement or escrow fee. The closing agent charges $500 to $1,500 to coordinate the transaction. In some regions this is split between buyer and seller; in others the seller pays.
Attorney fees. In attorney-closing states including New York, South Carolina, and Massachusetts, legal representation is required and typically adds $500 to $1,500 to seller costs.
Prorated property taxes. You pay property taxes through the day of closing. If you sell mid-year before your tax bill is due, the buyer gets a credit at closing and you effectively pre-pay your share.
See Closing Costs Explained: What Buyers Actually Pay for how the buyer's side of this table is structured.
Pre-listing costs: repairs, staging, and photography
Work done before your home goes on the market does not show up on the closing statement, but it comes out of your pocket before you see any proceeds.
Repairs and deferred maintenance. Your listing agent should walk the home and flag obvious items before listing. Minor cosmetic work - paint, fixture updates, landscaping - commonly runs $2,000 to $5,000. If a pre-listing inspection reveals a failing roof or HVAC system, the conversation shifts quickly; a buyer's inspector will find it regardless.
Staging. Professionally staged homes sell faster and for more money, according to the Real Estate Staging Association, though the margin varies by market. For an occupied home, staging consultations average $300 to $600 and focus on decluttering and rearranging existing furniture. Full staging of a vacant home - renting furniture for every room - typically costs $1,500 to $4,000 for the first month. See How to Stage Your Home to Sell for a full breakdown of what staging involves and when it pays.
Photography and video. Most full-service listing agents include professional photography in their commission. Aerial drone photography typically adds $200 to $400; 3D virtual tours (Matterport-style) add $200 to $600. These are usually negotiable as part of your listing agreement.
Capital gains tax: who pays and how the exclusion works
For most primary residence sellers, capital gains tax is not owed. The IRS allows a capital gains exclusion of $250,000 for single filers and $500,000 for married joint filers on the sale of a primary residence, provided you have owned and lived in the home for at least two of the five years preceding the sale, according to IRS Publication 523.
If your gain exceeds the exclusion - increasingly possible in high-appreciation markets - the excess is taxed at long-term capital gains rates (0, 15, or 20 percent depending on your income, per current IRS schedules). Investment properties and second homes do not qualify for the exclusion and are taxed differently.
Your taxable gain is the sale price minus your cost basis. Cost basis includes what you paid plus the cost of qualifying capital improvements (additions, new roof, HVAC replacement) - not routine maintenance. Keeping improvement receipts throughout ownership directly reduces your potential tax exposure.
Warning
The two-year primary residence test runs from the date of sale backward. Sellers who bought a home during a rapid-price-appreciation period and need to sell before two years - due to job relocation, divorce, or other hardship - may qualify for a partial exclusion. The IRS guidance on partial exclusion is in Publication 523. Consult a tax professional before closing if you are in this situation.
Seller concessions: how often buyers ask and what limits apply
A seller concession is a credit from the seller toward the buyer's closing costs, agreed in the purchase contract and approved by the buyer's lender. In buyer-leaning markets, concessions are common. According to Redfin transaction data, the share of sellers offering concessions rose through 2024 and into 2025 as market conditions shifted in many metros.
Lenders cap concession amounts by loan type. On a conventional loan, the cap is typically 3 percent of the purchase price for buyers putting down less than 10 percent, and up to 6 percent for buyers putting down 10 to 25 percent, according to Fannie Mae guidelines. FHA allows up to 6 percent; VA loans cap at 4 percent.
Concessions reduce your net proceeds directly - a $6,000 concession on a $400,000 sale is $6,000 less in your pocket. But concessions can also help close a deal without a price reduction that would affect comparable sale data for your neighbors.
How to calculate your estimated net proceeds before you list
Net proceeds = sale price, minus agent commissions, minus seller closing costs, minus mortgage payoff balance, minus pre-listing costs, minus any agreed concessions.
A realistic estimate on a $400,000 home with a $200,000 mortgage payoff might look like this: subtract $16,000 to $20,000 in total agent fees, $3,000 to $6,000 in closing costs and transfer taxes, $3,000 to $5,000 in pre-listing repairs and staging, and your $200,000 mortgage payoff. That produces net proceeds in the range of $155,000 to $178,000 - not the full $200,000 equity many sellers assume.
Use the seller net sheet your listing agent provides to run this calculation with real numbers for your specific property, county, and mortgage terms. If the projected net does not support your next move financially, you need to know that before you list, not the week of closing.
Tip
Ask your agent to prepare the net sheet in two scenarios: one assuming you contribute a buyer agent concession, and one assuming you do not. The difference shows you exactly what you pay to make the buyer's financing smoother - which may be worth it to close faster or attract more offers in your specific market.
Frequently asked questions
Does the seller always pay the buyer's agent commission?
No, not automatically. Before the August 2024 NAR settlement, sellers routinely covered both the listing and buyer agent fees through the MLS offer of compensation. Today, buyer agent compensation is separately negotiated and must be disclosed in a written buyer agreement. Sellers may still offer to cover it as a concession, but it is no longer assumed.
What closing costs are negotiable when selling a house?
Agent commission rates are negotiable, as are seller concessions to the buyer. Title and settlement fees can often be compared across providers. Transfer taxes and government recording fees are set by state law and are not negotiable. A seller's attorney fee, if required, may have some flexibility depending on the complexity of the transaction.
Do I owe capital gains tax if I sell my house for a profit?
Most primary residence sellers owe no federal capital gains tax, because the IRS allows an exclusion of up to $250,000 in gain for single filers and $500,000 for married joint filers. To qualify, you must have owned and lived in the home as your primary residence for at least two of the five years before the sale. Consult a tax professional for your specific situation.
What is a seller net sheet and how do I get one?
A seller net sheet is an itemized estimate of your proceeds after all costs are deducted from the sale price. It lists commissions, closing fees, transfer taxes, outstanding mortgage payoff, and any agreed concessions. Your listing agent should provide one before you sign a listing agreement. Ask for it early, not the day before closing.
Can I deduct home improvement costs from my taxable gain?
Yes. The IRS allows you to add the cost of qualifying capital improvements to your cost basis, which reduces your net gain. Improvements must add value, extend the home's useful life, or adapt it to a new use - routine repairs do not qualify. Keep receipts for renovations, additions, and major system replacements throughout your ownership.
How much do repairs before listing actually cost on average?
Pre-listing repair and improvement costs vary widely by property age and condition. Minor repairs and cosmetic updates commonly run $2,000 to $10,000. A full staging package for a vacant property averages $1,500 to $4,000 nationally, according to the Real Estate Staging Association. Deferred maintenance on systems (roof, HVAC, plumbing) can push costs significantly higher.