What Are the Costs of Selling a Home? | A Complete Guide for Home Sellers

Selling a home is one of the most significant financial decisions you’ll ever make. Whether you’re relocating, upgrading, or cashing in on your investment, it’s essential to understand the true costs of selling your home before you list it on the market. Many sellers focus on the potential profit but overlook the variety of expenses involved — from agent commissions and home repairs to closing costs and taxes.

If you’re planning to sell your home in Miami or anywhere in South Florida, this detailed guide breaks down the real costs of selling a home, helping you plan strategically and maximize your net proceeds.

1. Real Estate Agent Commission Fees

One of the largest costs when selling a home is the real estate agent’s commission. Typically, this fee ranges between 5% to 6% of the final sale price, and it’s usually split between the listing agent (representing the seller) and the buyer’s agent.

For example, if your home sells for $800,000, you could expect to pay around $40,000 to $48,000 in total commission fees. While it may seem like a substantial amount, hiring a professional real estate agent can significantly impact your success — from pricing your home correctly to marketing it effectively and negotiating the best possible offer.

An experienced agent brings invaluable market insight, professional photography, and exposure through the Multiple Listing Service (MLS) and top real estate platforms such as Zillow, Realtor.com, and Douglas Elliman. The right agent ensures that your home sells faster and at a higher price, often more than covering their commission through the added value they bring.

2. Home Repairs and Improvements

Before listing your property, it’s smart to invest in minor repairs or updates to attract more buyers and command a better price. Common pre-sale improvements include:

• Fresh interior or exterior paint

• Landscaping or curb appeal upgrades

• Deep cleaning and decluttering

• Fixing leaky faucets, damaged floors, or broken tiles

• Replacing outdated fixtures or hardware

These costs can range from a few hundred to several thousand dollars, depending on your home’s condition. In competitive real estate markets like Miami Beach, Coral Gables, or Coconut Grove, even small aesthetic upgrades can make a huge difference in how quickly your home sells and how much it sells for.

If your home requires significant updates — such as a new roof, HVAC system, or kitchen remodel — it’s important to consult your real estate agent before spending heavily. In some cases, it may be better to price your home accordingly and let buyers handle the renovations themselves.

3. Home Staging and Photography

In today’s digital real estate market, presentation is everything. Professional home staging and photography can dramatically increase your home’s online visibility and buyer appeal.

• Professional photography: $300–$800

• Virtual tours or drone footage: $200–$600

• Home staging: $1,500–$5,000 (depending on the size and duration)

A well-staged home helps buyers visualize themselves living in the space, often leading to quicker offers and higher sale prices. Staged homes consistently sell faster and for more money than vacant or cluttered ones.

4. Closing Costs for Sellers

While buyers typically cover most closing costs, sellers also have a few important financial responsibilities at the closing table. Typical seller closing costs include:

• Title insurance and settlement fees: 0.5% – 1% of the sale price

• Attorney or escrow fees (if applicable)

• Prorated property taxes up to the day of sale

• Mortgage payoff balance and potential prepayment penalties

• HOA transfer fees, if your property is within a homeowners’ association

Altogether, seller closing costs usually amount to 1%–3% of the home’s sale price. For a $700,000 home, that translates to $7,000–$21,000 in expenses.

5. Mortgage Payoff and Liens

If you still owe money on your mortgage, the outstanding balance will need to be paid off at closing. You can request a mortgage payoff statement from your lender, which will outline the remaining principal, interest, and any early payment penalties.

If there are liens or judgments against your property — such as unpaid contractor bills or tax liens — these must also be cleared before the title can be transferred to the buyer.

6. Property Taxes and Capital Gains

You’ll also be responsible for paying property taxes up to the date of sale. Depending on your state and local regulations, you may either prepay taxes or have them prorated at closing.

In addition, if your home has significantly appreciated in value, you could owe capital gains taxes on your profits. However, the IRS allows homeowners to exclude up to $250,000 (or $500,000 for married couples) in gains if the property was your primary residence for at least two of the past five years.

Consult a tax advisor or CPA for personalized guidance, especially if you’re selling an investment property or second home.

7. Moving Costs and Utilities

Don’t forget the practical costs of moving out. Hiring professional movers, renting a storage unit, or transporting furniture can add up quickly. On average, moving costs range from $1,000 to $5,000, depending on distance and the size of your home.

You’ll also need to keep utilities (electricity, water, internet, etc.) active until the day of closing to ensure inspections and showings go smoothly.

8. Optional Pre-Sale Expenses

To make your property more marketable, you may choose optional services such as:

• Pre-listing home inspection: $300–$500 (helps identify issues before buyers do)

• Professional cleaning: $200–$400

• Pest control or pool maintenance: varies by service

While optional, these services can build buyer confidence and help avoid costly surprises during negotiations.

9. Net Proceeds and Final Takeaway

After subtracting all selling costs — agent commissions, repairs, staging, closing fees, taxes, and mortgage payoff — most homeowners spend between 8% and 10% of their home’s sale price to complete the transaction.

For example, if you sell a home for $800,000, you could expect total costs between $64,000 and $80,000 before calculating your final profit.

Selling a home is more than just finding a buyer; it’s a strategic process that requires preparation, investment, and professional guidance. Understanding the real costs of selling your home helps you budget wisely, set realistic expectations, and maximize your returns.

If you’re considering selling your home in Miami, Surfside, or Normandy Isles, working with a local real estate expert ensures you receive personalized advice, accurate pricing, and a smooth transaction from listing to closing.

Ready to sell your Miami home? Message me today to get a personalized home valuation and a detailed breakdown of your selling costs — so you can move forward confidently and profitably.

📞 Contact Vanesa Carpignano Group | Douglas Elliman Real Estate
🌐 Visit www.vanesacarpignano.com
Your dream home in Miami might be closer — and more affordable — than you think.