Thinking of Selling? 7 Hidden Costs You Should Factor In Before Listing

Selling a home can be exciting, but many homeowners are caught off guard by the unexpected costs involved in the process. If you're planning to list your property, it's important to be prepared for these hidden expenses — otherwise, they can chip away at your profits.

According to a 2023 report by Zillow, the average U.S. seller spends over $31,000 on pre-sale home prep and agent commissions. Let’s dive into the major hidden costs you should consider before putting up that "For Sale" sign.

1. Repairs and Improvements

Buyers expect homes to be move-in ready. Minor fixes like leaky faucets, cracked tiles, or outdated fixtures can make a big difference.
Angi’s 2023 Home Report states that sellers spend an average of $4,000 to $6,000 on basic repairs and cosmetic updates before listing.

Common improvements include:

• Fresh paint

• Carpet cleaning or replacement

• Landscaping touch-ups

• Minor kitchen and bathroom upgrades

2. Home Staging

Staging your home helps buyers imagine themselves living there — and it works. The National Association of Realtors (NAR) found that staged homes sell 88% faster and for 20% more on average compared to non-staged ones.
Professional staging typically costs between $1,500 and $5,000, depending on the home's size and the extent of staging needed.

3. Pre-Inspection Costs

While buyers usually order inspections, some sellers opt for a pre-listing home inspection. This can cost around $300 to $500 and helps uncover any issues ahead of time, giving you a chance to fix them before negotiations.

4. Closing Costs

Many sellers forget that they also have closing costs, not just buyers. These typically include:

• Title insurance fees

• Escrow fees

• Transfer taxes

On average, sellers spend 1% to 3% of the sale price on closing costs, according to Bankrate.

5. Real Estate Agent Commission

Agent commissions are often the largest single expense for sellers. The standard commission is about 5% to 6% of the final sale price, split between the buyer’s and seller’s agents.
For example, on a $400,000 home, a 6% commission equals $24,000.

6. Utilities and Carrying Costs

Until your home sells, you’ll need to continue paying for:

• Electricity

• Water

• Gas

• Lawn care

A vacant, unstaged home can deter buyers, so keeping utilities on is important. Depending on your local market, these carrying costs can add up if your home sits on the market longer than expected.

7. Capital Gains Tax (if applicable)

If you’ve owned and lived in your home for at least two of the last five years, you can exclude up to $250,000 in profit ($500,000 for married couples) from capital gains tax, according to IRS guidelines.
However, if you don’t meet the criteria, you might owe taxes on your profit — a significant unexpected cost.

Final Thoughts

Selling a home involves more than just finding a buyer. Factoring in these hidden costs early will help you set a realistic price, avoid surprises, and maximize your financial return. Always consult with your real estate agent and financial advisor to plan accordingly.