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Home Sellers Underestimate Selling Costs by Nearly $40k: Survey

For sale sign 2: home sellers underestimated their costs

Nobody expects to sell a home cheaply. But many are shocked by how expensive it can prove. On average, home sellers expected to pay $18,557 but found costs rapidly rising to a total of $67,245, according to a new survey from Clever Real Estate, published on Monday.

However, that eye-watering sum included some costs that many need not pay, including pre-listing repairs and improvements, buyer concessions, and marketing and staging. Here's Clever's full list:

  • Pre- and post-listing repairs, improvements, and renovations: $21,024
  • Listing agent commission on the average-priced home: $14,204
  • Optional buyer's agent commission on the average-priced home: $13,691
  • Closing costs: $8,217
  • Concessions to the buyer: $5,277
  • Moving costs: $2,439
  • Marketing and staging: $2,393

As is often the case, this survey had a fairly small base, specifically online polling of 783 U.S. adults who sold a home between 2023 and 2025. So, you might prefer to treat it as interesting and informative rather than rigorous and wholly representative of sellers' experience.

Some Comments on Selected Results

By far the largest single expense ($21,024) homeowners incurred was preparing the home for listing by making repairs and improvements. However, this was a smart move by most because it delivered the highest return on investment (ROI) of all expenses. It was cited by 31% of survey respondents as being the best investment.

Much more modest marketing and staging costs tied for second place for the highest ROI, with 17% choosing that.

Neither of these should be a surprise. A home that is well-maintained, attractive and free of obvious defects is always likely to sell at a higher price — and more quickly — than a similar one that clearly requires work.

That partly explains the average $5,277 reported as concessions made to buyers by 80% of sellers. Of those who made concessions, 27% reduced the price, and 25% either made repairs themselves or offered credits to help fund the buyer's post-closing repairs.

Agents' Commissions

With nearly $28,000 on the line for commissions for listing and buyers' agents, paying these leaves a bitter taste in many sellers' mouths. True, sellers no longer have to pay buyers' agents' commissions, which could save them $13,691.

However, most do still pay this optional charge because they suspect, probably correctly, that their pool of potential buyers will shrink drastically if they don't pay.

All this was supposed to change following a 2024 court settlement made by the National Association of Realtors® (NAR). However, we can find little evidence for significant differences in most areas.

Still, that doesn't mean home sellers are helpless. The NAR's website confirms, "Compensation for your agent remains fully negotiable and is not set by law, and if your agent is a REALTOR®, they must ... have clear and transparent discussions with you about compensation."


The Clever survey says, "Nearly 1 in 4 sellers (22%) think they overspent on commission, and if they could do it again, 1 in 6 (16%) would negotiate their agent's fee." And, of course, homeowners are always free to list their properties themselves on a for-sale-by-owner (FSBO) basis.

Naturally, agents will have plenty of examples of FSBO cases where owners have made serious losses by pricing their homes wrongly or failing to market them properly. And to avoid those requires a lot of research and work.

Read Tips and Tricks for Selling Your Home

It's Up to You

Many of the costs that make up that scary $67,245 in selling costs are either optional or negotiable. Indeed, if your home is already in great condition and you take the FSBO route, you might pay less than the $18,557 many homeowners expect.

To a large extent, the amount a homeowner pays to sell is in her or his hands. How much effort are you willing to expend to make savings?

About The Author:

Peter Warden has been covering mortgage, real estate, and personal finance for 15 years. He has appeared on The Mortgage Reports, Credit Sesame, Bills.com, and other publications.

Know your numbers before you sell
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