Selling a home is far more costly than Americans typically believe, and many recent sellers have regrets about the process.
A recent report from Clever Offers found that sellers think they’ll have to spend $18,577 on the various costs associated with a sale.
But in reality, the average cost is now $67,245, more than three times sellers’ expectations.
Sellers are forking over $21,024 for repairs and improvements, $5,277 in buyer concessions, and $2,393 for marketing and staging. Closing costs average $8,217, while moving into a new place requires $2,439.
Plus, listing agent and buyers’ agent commissions are coming in at $14,204 and $13,691, respectively.
More than half reported being surprised at the price tag, and 40% felt financial strain. Some ended up stretching beyond their means, with 22% going into debt to cover expenses.
Thanks to historically high home price appreciation, 79% of sellers made a profit on their sale, offsetting the financial bruising. But a majority said their profit was lower than expected due to the money they were forced to shovel into the process.
Most reported regrets and think they could have made nearly $36,000 extra if they’d made different choices. The most frequently cited regret was paying too much in agent commission.
Sellers are in a tricky position. Home price appreciation is cooling but remains historically high in most parts of the country. Mortgage rates are at their lowest this year, and inventory is recovering, but potential buyers are still nervous to jump into the market.
They’re also competing with a flood of new construction, which builders are desperately trying to move. Home shoppers looking for deals can find plenty of incentives, from rate buydowns and cash credits to free upgrades.
Experts say home sellers should focus on the broader benefits and profit, rather than the expenses, when considering the financial toll of a sale.
“You’re talking about one of the most expensive and consequential transactions of a lifetime. These fees can, on the face of it look a bit daunting, but the good news is most people are not going into this where they’re going to essentially lose money on the transaction,” Mark Hamrick, senior analyst at Bankrate, told CNBC last year.
He also emphasized that many fees can be negotiated, and there’s “no harm” in asking for a reduction.
