How Much Does It Cost to Sell a House?
The number that matters when you sell isn't the price on the sign. It's what's left after everyone takes their cut — and that gap is bigger than most sellers guess. On a typical sale you'll hand back somewhere between 8% and 12% of the price in costs, and a heavy-prep sale can push toward 15%.
On a $400,000 home, that's $32,000 to $48,000 gone before your mortgage is even paid off. Here's where every dollar goes.
The short version
| Cost | Typical range | On a $400,000 sale |
|---|---|---|
| Agent commission | 5–6% | $20,000–$24,000 |
| Seller closing costs | 1–3% | $4,000–$12,000 |
| Concessions to buyer | 0–2% | $0–$8,000 |
| Prep, staging, repairs | 1–3% | $4,000–$12,000 |
| Total selling costs | 8–12%+ | ~$32,000–$48,000 |
That total comes off the top. Whatever's left then pays your remaining mortgage, and only then do you see cash. Let's walk through each line.
Agent commission — the big one
Commission is the largest single cost, historically 5–6% of the price split between the two agents. On $400,000 that's $20,000–$24,000, which is real money for a few weeks of work and the reason people keep trying to avoid it.
It's also changing. After the 2024 settlement involving the National Association of Realtors, sellers are no longer automatically on the hook for the buyer's agent's commission, and the whole fee is more openly negotiable than it used to be. Some sellers now pay only their own listing agent; others still cover both sides to attract buyers. Don't treat 6% as a fixed law — ask, and compare.
Closing costs — the pile of smaller fees
Separate from commission, sellers typically owe 1–3% of the price in closing costs. This bucket is a grab-bag that varies a lot by state:
- Title insurance and title search fees
- Escrow or settlement agent fees
- Transfer taxes (nothing in some states; a real bite in places like New York, Washington, or Delaware)
- Attorney fees, where your state requires a closing attorney
- Recording fees and prorated property taxes
On our $400,000 example, budget $4,000–$12,000, leaning higher in a transfer-tax state.
Concessions — the negotiated giveaways
In a buyer's market, or when the inspection turns up problems, buyers ask for credits — money toward their closing costs or to cover repairs they'd rather handle themselves. These concessions come straight out of your proceeds. They're $0 in a hot market and can run a percent or two when buyers have leverage.
Prep, staging, and repairs
The costs you pay before the sign goes up. Fresh interior paint runs around $1,200 for a typical home; professional staging averages roughly $1,800; and then there's whatever the house actually needs — a dated bathroom, a roof the inspector will flag, landscaping. None of it is huge on its own, but it's cash out of pocket with no guarantee of return, and it adds up faster than people expect.
The mortgage payoff isn't a "cost," but it eats your check
Your remaining loan balance isn't a selling expense, but it's the biggest deduction from what you actually walk away with. Sale price, minus all the costs above, minus your mortgage payoff, equals your net proceeds. If you've only owned a few years and put little down, that payoff can be most of the price — which is how someone sells a $400,000 house and nets $40,000, not $200,000.
Net proceeds are not profit
Worth saying plainly, because it trips people up: the check you get at closing is your net proceeds, not your profit and not your taxable gain. Those are three different numbers.
- Net proceeds = price − selling costs − loan payoff. The wire you receive.
- Profit = net proceeds − what you originally paid and invested.
- Taxable gain = a separate IRS calculation that, for an investment property, includes depreciation recapture and can differ sharply from your economic profit.
If this is a rental, don't stop at net proceeds — the tax bill comes after. The sale proceeds calculator walks through selling costs, payoff, and a tax estimate so the number you plan around is the one that actually reaches your account.
Frequently asked questions
What percentage do you lose when selling a house?
Usually 8–12% of the sale price in selling costs — agent commission (5–6%), closing costs (1–3%), and prep or concessions on top. A high-prep sale or a transfer-tax state can push it toward 15%. That's before your mortgage payoff, which further reduces what you pocket.
Who pays closing costs when selling a house?
Both sides pay their own. Sellers typically cover 1–3% of the price for title, escrow, transfer taxes, and any attorney fees, plus the agent commission. Buyers pay their own loan and closing costs. In softer markets, sellers sometimes agree to credit part of the buyer's costs as a concession.
Do I have to pay the buyer's agent commission?
Not automatically anymore. Following the 2024 NAR settlement, seller responsibility for the buyer's agent fee is negotiable rather than assumed. You may still choose to offer it to attract buyers, but it's now a decision rather than a default.
How do I calculate my net proceeds from selling a house?
Take the sale price, subtract total selling costs (commission, closing costs, concessions, prep), then subtract your remaining mortgage balance. What's left is your net proceeds. For a rental, subtract estimated taxes after that to get your true take-home.