Save Money on Home Selling Costs: Guide for FSBO Sellers

How Much Does it Cost to Sell a House? (Complete 2025 Guide)

The True Cost of Selling Your Home in 2025

Selling your home is a significant financial decision that comes with numerous expenses beyond what most homeowners initially anticipate. According to data from the National Association of Realtors and industry analyses, the average U.S. home seller spends between 8-13% of their home's sale price on various selling costs, with commission fees typically accounting for 5-6% of this total. On a median-priced U.S. home of approximately $400,000, the sum of all selling costs can range from $32,000 to $52,000.

What you'll learn in this guide:

• A complete breakdown of all costs associated with selling your home
• How to save thousands in real estate commission fees
• Timeline of expenses from pre-listing through closing
• Regional cost variations and state-specific expenses
• Strategies to reduce your overall selling costs
• Real-life examples of homeowners who saved with FSBO methods

Quick Takeaway: The average seller pays approximately 8-13% of their home's sale price in total selling costs, with real estate agent commissions (5-6%) being the largest expense. By using a flat-fee MLS service like ByOwner instead of a traditional agent, you can potentially save $12,000-$24,000+ on a $400,000 home sale, depending on your specific circumstances.

Comprehensive Breakdown of Home Selling Costs

Timeline of Selling Costs

Understanding when expenses occur helps with financial planning throughout the selling process.

Pre-Listing Phase (1-3 months before listing)

• Home repairs and improvements
• Pre-listing inspection (optional)
• Professional cleaning and decluttering
• Storage unit rental (if needed)

Active Listing Phase (during time on market)

• Ongoing house cleaning and maintenance
• Utilities for vacant property
• Mortgage, taxes, and insurance payments
• Marketing costs
• Open house expenses

Under Contract Phase (typically 30-45 days)

• Negotiated repair costs after inspection
• Home warranty (if offered to buyer)
• Appraisal gap coverage (if applicable)
• Attorney fees (in applicable states)

Closing Phase (closing day)

• Closing costs and fees
• Transfer taxes
• Commission or flat fee payment
• Mortgage payoff
• Prorated property taxes and HOA fees

Real Estate Commissions: Your Biggest Expense

Traditional real estate commissions typically range from 5-6% of your home's final sale price, splitting almost evenly between the buyer's agent and your listing agent. On a $400,000 home, this commission amounts to $20,000-$24,000 – money that comes directly out of your equity.

What is a real estate commission?

Traditional Agent Commission vs. Flat-Fee MLS Service

*Includes ByOwner flat fee plus the a 2.5% buyer's agent commission that sellers still commonly pay in if a buyers agent is involved. If no buyers agent, your savings could be substantially higher in a FSBO transaction.

Success Story: After researching my options, I listed my home with ByOwner's flat-fee MLS service. My house sold for $425,000, and I saved over $15,000 compared to what I would have paid with a traditional agent. The process was straightforward, and I had full control over my listing." — Michael T., Dallas, TX

Pre-Listing Expenses: Preparing Your Home for Sale

Before your home even hits the market, you'll likely incur several expenses to ensure it shows well and attracts potential buyers.

Home Preparation Costs

*The data for home preparation costs was sourced from industry-leading pricing guides including HomeAdvisor, Thumbtack, Angi, Real Estate Staging Association, and storage company rate databases as of April 2025.

Home Staging ROI: According to the National Association of Realtors' 2023 Profile of Home Staging, 23% of agents reported that staging increased the dollar value of homes between 1-5% compared to similar unstaged homes. Additionally, 31% of agents noted that staging greatly decreased time on market. On a $400,000 home, even a modest 1-5% increase could mean an additional $4,000-$20,000 in your pocket, potentially making it a worthwhile investment.

Pre-Sale Home Improvements

Strategic home improvements can increase your home's value and selling potential. Focus on high-ROI improvements:

1. Fresh Paint ($2,000-$4,000 for interior): According to Zillow's 2024 paint color analysis, neutral interior paint can provide positive returns by appealing to more buyers
2. Kitchen Updates ($5,000-$15,000 for minor remodel): Remodeling Magazine's 2024 Cost vs. Value Report shows minor kitchen remodels recoup approximately 72% of costs on average
3. Bathroom Refreshes ($3,000-$8,000): The same report indicates bathroom refreshes typically recoup around 60-67% of costs
4. Landscaping Enhancements ($500-$3,000): NAR research suggests basic landscaping improvements can recover full value or more at resale, with an estimated 100% ROI for basic curb appeal projects

Cost-Saving Tip: Not all home improvements deliver equal returns. Focus on addressing major issues that will show up in inspections, refreshing paint, and enhancing curb appeal, rather than major renovations before selling.

Marketing Costs: Showcasing Your Property

Whether working with an agent or selling yourself, marketing expenses are essential for attracting qualified buyers.

Essential Marketing Expenses*

Average marketing expenses for home sellers typically include:

• professional photography ($150-$300),
• virtual tours ($250-$500),
• yard signs ($25-$100),
• printed materials ($50-$200),
• open house supplies ($50-$200).

These costs may vary by market and property value.

*The marketing expense estimates were compiled from national averages reported by the National Association of Realtors, real estate photography services like VHT Studios, and typical pricing from marketing materials providers as of April 2025.

Photography ROI

According to a study by VHT Studios, homes with professional photography sell 32% faster on average. Data from the National Association of Realtors shows that 87% of buyers find photos very useful in their home search process. This makes professional photography one of the potentially highest-ROI investments when selling your home.

Closing Costs and Final Expenses

Closing costs typically range from 1-3% of the sales price (in addition to agent commissions). These costs vary significantly by state and local jurisdiction.

Breakdown of Seller Closing Costs

1. Title Insurance ($1,000-$4,000): Protects the buyer from issues with the home's title
2. Transfer Taxes (varies by location): State and local taxes on property transfers
3. Escrow Fees ($500-$2,500): Third-party handling of funds and documents
4. Attorney Fees ($400-$1,500): Required in some states for closing oversight
5. HOA Transfer Fees ($200-$800): If your property is in an HOA community
6. Property Tax Prorations: Your share of property taxes up to the closing date
7. Recording Fees ($100-$200): Government charges for recording the sale
8. Mortgage Payoff Fees (varies): Potential prepayment penalties or processing fees

State-by-State Closing Cost Variations*

Closing costs vary significantly by location. Here are the average seller closing costs (excluding commission) for some states:

*Note:The closing cost data was compiled from ClosingCorp, CoreLogic, state real estate association reports, and title company rate information as of early 2025, with variations reflecting regional differences in transfer taxes, title insurance rates, and customary fees.

States Where Attorneys Are Commonly Used in Real Estate Closings:

Connecticut, Delaware, Georgia, Massachusetts, New York, North Carolina, South Carolina, and West Virginia. While not legally required in all these states, attorney involvement is customary in these markets.

Other states like Florida, Illinois, and New Jersey often use attorneys, though practices vary by region. Always check your specific state's requirements before proceeding.

Hidden and Unexpected Selling Costs

Many sellers are caught off guard by expenses that arise during the selling process.

Common Unexpected Expenses

1. Repair Concessions ($2,000-$10,000): Buyers often request repairs or credits after inspections
2. Appraisal Gap Coverage (varies): If the appraisal comes in below offer price
3. Seller Concessions (1-3% of sale price): Credits toward buyer's closing costs
4. Extended Mortgage Payments ($1,000-$3,000/month): If your home doesn't sell quickly
5. Capital Gains Tax (15-20% of profit above exemption): For significant profits
6. Moving Expenses ($1,500-$5,000): Often underestimated by sellers
7. Temporary Housing (varies): If you sell before buying your next home

Tax Exemption Note:

IRS rules allow most homeowners to exclude up to $250,000 ($500,000 for married couples) in capital gains if you've lived in the home as your primary residence for at least 2 of the past 5 years.

How to Save Money on Home Selling Costs

Commission Savings with ByOwner

The most significant way to save on selling costs is by avoiding the traditional 5-6% real estate commission. ByOwner's flat-fee MLS service gives you professional listing exposure without the percentage-based commission.

With ByOwner, you pay a low flat fee (mostly $195, but even as low as $95 in some states) to list your home on the MLS, which then syndicates to hundreds of popular real estate websites. You'll still typically offer a buyer's agent commission (2.5-3%), but you save the majority of the listing agent's portion, resulting in thousands of dollars saved.Sell your home with us and keep the money!

Additional Cost-Saving Strategies

1. Time your sale strategically: According to NAR data and Zillow research, late spring through early summer (May through June) is typically the best time to sell in many U.S. markets, with potential for higher prices and shorter market time
2. Negotiate repair requests carefully: Offer credits instead of completing repairs when advantageous
3. Consider a pre-listing inspection: Identifying issues early prevents buyer negotiations
4. DIY what makes sense: Handle minor repairs, cleaning, and lawn maintenance yourself
5. Compare title insurance providers: Rates can vary by hundreds of dollars
6. Bundle moving services: Get quotes from multiple movers and negotiate packages
7. Time your closing strategically: Coordinate closing dates to avoid temporary housing

Cost Comparison: Traditional Agent vs. ByOwner ($400,000 Home)

Note: These figures represent typical scenarios based on national averages. Your actual costs may vary based on your local market, property condition, and specific circumstances. Most expenses remain the same regardless of selling method, with the primary savings coming from the difference between percentage-based agent commission and the flat-fee MLS listing service.

Case Study: The Anderson family sold their 4-bedroom home in Austin, Texas for $485,000 using ByOwner's flat-fee MLS service. They spent $2,200 on pre-listing preparations, paid a 2.5% buyer's agent commission ($12,125), and incurred $8,500 in closing costs. Their total selling expenses were $23,324 (4.8% of sale price), compared to the $38,800 (8% of sale price) they would have paid with a traditional agent. Total savings: $15,476.

Tax Implications When Selling Your Home

Understanding the tax implications of your home sale can help you plan appropriately and avoid surprises.

Capital Gains Exclusion

If you've owned and lived in your home as your primary residence for at least 2 of the 5 years before selling, you can exclude up to $250,000 of capital gains ($500,000 for married couples filing jointly) from your income.

Example: You purchased your home for $300,000 and sold it for $500,000, resulting in a $200,000 profit. If you meet the residence requirements, this entire gain would be tax-free for most married couples.

Deductible Selling Expenses

Some selling expenses can reduce your capital gains tax if your profit exceeds the exclusion amount:

• Home improvements and repairs made within 90 days of sale
• Real estate agent commissions
• Legal fees
• Title insurance
• Advertising costs
• Inspection fees

Tax Tip: Keep detailed records of all home improvements throughout ownership, as these can increase your home's cost basis and reduce potential capital gains.

Sell Your Home with ByOwner

Why pay thousands in agent commissions when you can get the same exposure for your listing with a low flat fee? ByOwner helps you sell your home on your terms while saving thousands in commission fees.

Our flat-fee MLS listing service includes:

• Professional MLS listing visible to all local agents
• Syndication to major real estate websites (Zillow, Realtor.com, Trulia, etc.)
• Customizable listing with multiple photos
• Support throughout the selling process
• Online tools and resources for FSBO sellers

Don't pay 5-6% of your home's value in agent commissions. List your home on the MLS with ByOwner for just $195 (or as low as $95 in some areas) and keep more of your equity.