People always talk about a home being the biggest investment in your portfolio — an investment that (hopefully) pays once the day comes when you decide to sell. And while we firmly stand behind that assessment, the reality is that there are also some costs associated with selling that aren’t readily known — but that are equally important to bear in mind. Wondering how much it costs to sell your home today?

On average, selling your home will cost about 7% of the ultimate sales price. Wondering what contributes to that percentage? Keep reading to find out.

#1 Preparing Your Home: One of the most important strategies when selling is to to highlight your home’s best features so buyers can envision themselves living there. Staging, which involves arranging furniture and decor throughout your house, costs around $2,500 on average for a typical DC row home. Hiring someone to mow your lawn costs about $50, while larger landscaping projects can reach $1,000 or more. Of course, costs here will depend on the size of your home and the scope of the job.

#2 Real Estate Agent Commission Fees: From strategizing on price to marketing the house, adding the listing to MLS, arranging tours, negotiating for results, and more, your agent is a key member of your sales team who specializes in maximizing a home’s value on the market.

Hiring someone to do this legwork saves you time and effort, but the agent’s services aren’t free. On average, sellers can expect to pay 5 – 6% of the sale price as commission fees, also known as REALTOR® fees. For a $200,000 home, for example, you’d pay $10,000 – $12,000, split between your real estate agent and the buyer’s agent.

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➤ Thinking about selling your home soon? Read these selling blogs to learn more about the process:

• Tips for Selling an Older Home
• An Elevated Approach to Listing Homes for Sale Today
• Introducing Final Offer for Buyers and Sellers

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#3 Seller Concessions: Aptly, named, a seller concession means you’ve agreed to pay some of the closing costs on behalf of the buyer. For example, you might offer to cover the buyer’s inspection repairs or closing costs to sweeten the deal. According to Opendoor data, seller concessions typically amount to 1.5% – 2% of the total home sale price.

#4 Closing Costs: Closing costs are fees paid by both the seller and buyer to cover the costs of the home sale transaction. A buyer’s closing costs typically range about 3% of the home’s selling price, while sellers typically pay between 1% – 2%. A seller’s closing costs usually include the closing fee, transfer taxes, an attorney’s fee, recording fees and any property taxes that have accrued.

#5 Mortgage Payoff: If there’s a balance on your mortgage, the title company will pay it off when you sell the home. The proceeds of the sale typically pay off the original loan leaving your net proceeds. Keep this amount top of mind when you’re thinking about buying and selling a home at the same time.

#6 Capital Gains Tax: The capital gains tax is a tax on the profit you make from selling an asset, including your home. If you sell the home less than a year after moving in, you’ll pay this tax on the home sale. There are, however, ways to minimize or even eliminate capital gains tax expenses completely. For instance: Real estate is exempt from capital gains tax if you own the home and it’s your primary residence, meaning you’ve lived there for at least 2 out of the last 5 years. For a single resident the current exemption is up to $250,000 and for a married couple up to $500,000.

Seeking more information on how much it might cost to sell your home today? Our team is here to help, book a consultation here.