Selling a house costs an average of $54,000 – Here's how you can control costs
Between commission fees and moving costs, home sellers said they spent more than expected to secure a home sale this year, according to a Clever Real Estate survey.
On average, sellers spent $54,616 to sell their homes, with 42% reporting that the costs exceeded their expectations, the survey said. The biggest expense was on listing agent and buyer's agent commission fees. Sellers spent an average of $21,603 on these fees in addition to $10,000 on repairs, $8,000 on closing costs and $7,200 on concessions. Moving expenses added an extra $3,250 to the bill. Sellers also spent an average of $4563 on marketing and staging their properties.
High borrowing costs and high home prices have largely sidelined buyers. The lack of housing supply has heightened competition for affordable housing, but many sellers said they have to compromise their priorities to get a sale done.
The most significant compromise was on the asking price, the survey said. Sellers were 87% more likely to sell below the asking price than in 2022, and 34% were dissatisfied with the final sale price. Additionally, 89% made concessions to the buyer, with a median value of $7,200.
"A whopping 89% of sellers expressed regrets, with the most common being that they sold too quickly (30%)," the survey said. "If they had known the true cost of selling their home, 89% of sellers would have approached the process differently. Sellers believe that with a different strategy, they could have sold their home for an additional $50,000 on average."
Homebuyers can find the best mortgage rate by shopping around and comparing your options. You can visit an online marketplace like Credible to compare rates with multiple lenders at once.
MIDDLE-INCOME AMERICANS FEEL MORE OPTIMISM ABOUT FINANCES AND ECONOMY'S DIRECTION: SURVEY
Home prices continue to rise in most cities, helping some sellers make a profit even with surprise expenses. While some sellers expressed regret over the amount of money they spent on their home sale, 64% made a profit at a median of $100,000.
Homes sold with an agent fetched an average of $34,000 more, leading 54% of unrepresented sellers to regret not using an agent, the survey said. Roughly 36% of sellers also regretted not listing their home for a higher amount, and 35% said they wished they had waited for more offers. In addition, 32% said they should have negotiated more with the buyer, and 31% said they regretted not negotiating the commission rate with their agent.
If you're looking to become a homeowner, you could still find the best mortgage rates by shopping around. Visit Credible to compare your options without affecting your credit score.
Sellers in the market can attract the highest bid by timing when they list their property to make unique features of their home stand out the most to buyers, according to a recent Opendoor study.
"Opendoor recently analyzed home sales over the past five years across 50+ markets," the study said. "We found that depending on the season, there are surprising features that can lead a home to sell faster – and for more money. Understanding these seasonal nuances is key to helping buyers and sellers seize their selling season."
Opendoor's analysis found that these four features can net a higher close price in the spring vs. winter:
If you're considering becoming a homeowner, it could help to shop around to find the best mortgage rate. Visit Credible to compare options from different lenders and choose the one with the best rate for you.
HIGH HOMEOWNERS INSURANCE RATES SCARING AWAY FLORIDA HOMEBUYERS, OTHER STATES FACE THE SAME ISSUE
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.