How Much Does It Cost to Sell a House?

If youre selling a home, youll want to know how much its going to cost you to close the deal. That way you can make a plan for buying your next house.

In addition to whats needed to pay off your mortgage, its smart to plan to spend about 10% of the home price in selling costs. But some things are optional.

Selling your home: common costs

Real estate agent commissions: The sellers agent usually charges 5% to 6% of the home purchase price when the deal closes. This is likely the biggest expense youll pay. Sellers agents usually split commissions with buyers agents, who generally dont charge their clients.

Commission fees are negotiable, however, and many real estate agents charge less. Some even accept a lower flat rate for their services, so it can pay to shop around. You can ask for recommendations from friends and neighbors, and search home shopping websites for local referrals. Whichever sellers agent you choose, make sure you agree on commission terms in writing.

Taxes and neighborhood fees: Youll owe a prorated share of property taxes when you sell your home. The amount could be close to zero if youve recently paid taxes, or several thousand dollars if the due date is around the corner.

In some states, you may also be charged a local transfer tax, which the seller pays in order to change the title from one person to another. Depending on location, the tax is generally 0.01% to 2% of the sales price. In addition to the local taxes, you may also face capital gains taxes if the profit you make from selling your home is more than 250,000 (500,000 for married couples on joint tax returns).

If your neighborhood has a homeowners association, expect to pay prorated membership fees. You or the buyer may also need to pay an HOA transfer fee.

Title insurance for the buyer: This protects the buyer in case theres an issue with the homes ownership history.

Buyers also purchase a title policy if they apply for a mortgage, but that policy only protects the lender. Traditionally, the seller buys a separate policy for the new homeowner. The cost ranges from about 500 to 1,000.

The title company will run a title search on the property during the sale process. If a lien on your home is revealed, youll also need to settle it before you can sell the house.

Your current mortgage: Its no surprise youll need to pay off your mortgage when you sell your home. But the payoff amount is probably different from the balance due listed on your last mortgage statement, because of interest charges. Youll want to know the payoff amount. If your mortgage has a prepayment penalty, that will be added to the amount due.

Home repairs: Your buyer will probably order a home inspection before closing. If the report reveals problems, you may be asked to pay for repairs.

Moving costs: Whether you buy boxes, pack and move them yourself or hire a company, youll want to budget money for the actual move.

Selling your home: optional costs

Depending on how competitive your local market is, it can be smart to pay for extra services to attract potential buyers. Theyre not always necessary, but in a sluggish market they could help your home stand out.

Home warranty: To ease potential worries about buying an older home, sellers can offer a home warranty that covers most of the repair costs if a major system breaks soon after the home is sold. A typical one-year warranty costs 350 to 500.

Home staging: Its wise to remove clutter and give your home a good cleaning before you put it on the market. But your agent may suggest going a step further and hiring a home stager to make your home more visually appealing.

Stagers may rearrange furniture, change the interior design and even rent furniture to display while selling your house. Most stagers charge from 250 to 1,000, according to HomeAdvisor.com.

Portion of buyers closing costs: Buyers are usually responsible for mortgage fees, home inspections and appraisal expenses, which can add up to about 2% to 5% of the selling price. If youre in a slow market, offering to pay some of those closing costs for the buyer could help close the deal.

Margarette Burnette is a staff writer at NerdWallet, a personal finance website.

This article originally appeared on NerdWallet.