Want to estimate cost of selling home? This guide is for you

Thinking about selling your property? Selling a home is exciting, but it’s not as simple as pocketing the sale price and walking away. Between closing costs, agent fees, property taxes, and outstanding mortgage balances, many sellers are surprised by how much they actually net from the sale. If you want to estimate cost of selling home, this guide is for you. 

Remember, with the right information and tools such as Kukun’s Prep to Sale, you can calculate your expected expenses, see your estimated home sale proceeds, and make smart choices that maximize your net proceeds.

Know that it’s crucial to understand the many costs involved. While it’s easy to anticipate the lump sum you’ll (hopefully!) walk away with, selling a house isn’t free—far from it. Here’s what a home seller pays to ensure a smooth real estate sale. 

Real estate agent commission: Your biggest expense

This is often the most significant expense when you sell your home. The average cost you can expect to pay for an agent commission is 5–6% of the home’s sale price. This commission amount is typically split between the listing agent (your agent) and the buyer’s agent. Let’s take an example to understand this. If you sell your home for $400,000, you can expect to pay $20,000 to $24,000 in total agent fees.

Can you negotiate? Yes! Some agents may reduce their commission, especially for high-value homes. Or, if you’re utilizing their services to buy a new home.

Closing costs: Paying your share 

The average closing cost is 1–4% of the costs of the home sale price. Remember that these expenses are different from buyer closing costs and include:

• Title insurance: This type of insurance protects the home buyer from ownership disputes ($500–$1,000+).
• Escrow fees: Covers third-party handling of funds and paperwork (varies by region, often $500–$2,000).
• Transfer taxes: These are charged by cities/states to legally transfer homeownership (typically 0.1%–2.2%).
• Recording fees: These are required to update public property ownership records.
• Prorated property taxes and HOA dues: This is the amount you pay up to the day of closing.

Homeownership does come at a cost. Together, these fees can easily total thousands of dollars. That’s why it’s crucial not to overlook them when you have to estimate cost of selling home. 

Outstanding mortgage balance: Clearing your debts

If you still owe money on your home mortgage, the outstanding mortgage balance is deducted directly from your home sale proceeds. The title or escrow company typically handles this at closing.

Pro tip: Contact your loan lender ahead of time to get your payoff quote—including any interest and early payment fees—so there are no surprises.

Home repairs and updates: Your prep work

The average cost to prepare your home for sale varies greatly ($1,000 to $10,000+ depending on condition). This is where the Kukun Prep to Sell comes in handy. The tool helps you identify which renovations can increase your property’s value and estimate the associated costs, enabling you to make informed decisions about pre-sale improvements.

It allows you to input your address and get personalized recommendations and estimated costs for pre-sale improvements, such as:

• Fresh paint.
• Roof repair.
• Kitchen or bathroom updates.
• Landscaping and curb appeal updates.

These upgrades don’t just make your home look better—they often lead to a higher sale price and a quicker sale. Kukun even helps you avoid over-improving your home relative to others in your neighborhood.

Seller concessions: Sweeteners for the buyer

Sometimes buyers ask sellers to help with their closing costs or repairs after the inspection. These are called seller concessions and may be anything between 2% to 9% of the sale price. While this amount is negotiable, it can affect your bottom line.

Examples of concessions:

• Covering a portion of the buyer’s closing costs.
• Offering a credit for flooring or appliance upgrades.
• Paying for a home warranty.

Attorney fees: Required in certain U.S. states

Some states require the services of a real estate attorney at the time of closing. Even if it’s optional, most sellers choose to hire one for peace of mind. The typical cost is about $500–$1,500.

Your real estate attorney will review contracts, ensure all documents are in order, and handle the legal transfer of property.

How to estimate cost of selling home: Examples 

Let’s take an example of what it might cost to sell a $400,000 home.

• Real estate agent commission (5%): $20,000
• Closing costs (2%): $8,000
• Outstanding mortgage: $250,000
• Repairs/prep work: $5,000
• Seller concessions: $2,000

Estimated net proceeds: $115,000

If your house sells for $500,000:

• Mortgage payoff: $300,000
• Agent fees (5-6%): $30,000
• Closing costs (2%): $10,000
• Repairs, prep, and home staging: $8,000

Estimated net proceeds: $152,000

Key takeaway: Knowledge = Power (and more profit)

The costs of selling a house can sneak up on you. But with a little planning (and help from Kukun’s Prep to Sell Calculator) you’ll know exactly what to expect. This home sale calculator will help you with strategic repairs and improvements for maximum return on investment.
Selling a house is a big move—literally and financially—but with the right prep, you’ll walk away feeling confident and ready for your next chapter.

Written by Ramona Sinha. April 10, 2025

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.