Nearly $55,000 is the typical cost for homeowners when selling their homes, according to a report.

• According to a report by Clever Real Estate, the typical cost to sell a house in 2024 is $54,616.
• Jaime Dunaway-Seale, data writer at Clever Real Estate, stated that when individuals consider selling their homes, they primarily focus on the profit they will gain from the sale rather than the expenses they will incur.

According to a new report, both buying and maintaining a home are expensive, while selling it can also be costly.

According to a June 17 report from Clever Real Estate, the typical cost of selling a house in 2024 is $54,616. Nearly half of surveyed home sellers, or 42%, reported that their selling costs were higher than anticipated, the report revealed.

Jaime Dunaway-Seale, data writer at Clever Real Estate, stated that when individuals consider selling their homes, they primarily focus on the profit they will gain from the sale rather than the expenses they will incur.

"The high cost catches them off guard and disappoints them because it reduces their profit," Dunaway-Seale stated.

In May, Clever Real Estate surveyed 1,014 Americans who sold a home between 2022 and 2024 about their attitudes towards the home-selling process and analyzed seller costs based on median real estate prices in May.

These are the least difficult areas to buy a home.

Real estate agent commissions account for approximately 39% of the total cost, which amounts to $21,603, according to the report.

As a landmark case involving real estate agent commission fees is set to take effect, sellers will no longer have to cover the entire commission fee. If a seller chooses not to pay the buyer's real estate agent's commission, it could potentially save them around $10,000, according to Dunaway-Seale.

Other typical expenses include home repairs, closing costs, buyer concessions, moving costs, marketing and advertising costs, and staging costs. Clever Real Estate estimates these expenses to total $27,813.

Mark Hamrick, senior analyst at Bankrate, advised home sellers to prioritize "maximizing the efficiency of the transaction" rather than solely "trying to save on costs."

"In many cases, negotiating real estate commissions can be beneficial, as there are often no negative consequences," Hamrick stated.

'There are plenty of costs involved'

According to the Clever Real Estate report, homebuyers in today's market are not interested in purchasing homes that require renovations due to cost constraints.

"Kashif A. Ahmed, founder and president of American Private Wealth in Bedford, Massachusetts, stated that there are numerous expenses to consider before selling a property."

If a buyer discovers issues in the house during the home inspection process that were not visible during the initial walkthrough or disclosed by the seller, they may be able to request repairs from the seller, according to Daryl Fairweather, the chief economist at Redfin, who recently spoke to CNBC.

In housing markets where listed homes are taking longer to sell, homebuyers have more bargaining power, says Orphe Divounguy, a senior economist at Zillow.

According to Clever Real Estate, sellers frequently have to make pre- and post-listing repairs, enhancements, and renovations that can total approximately $10,000.

Ahmed said, "In some cases, a buyer may state, 'I need you to repair this before I purchase it,' and then you respond, 'In order to dispose of this property quickly, I'll spend the additional funds.'"

The highest expenses an owner will incur when selling a home are the real estate agent commission fees, according to Ahmed.

'The rule change has not yet gone into effect'

A pivotal decision is about to revolutionize the process of purchasing and selling properties in the United States.

In March, the National Association of Realtors reached a $418 million settlement in an antitrust lawsuit where a federal jury determined that the organization and other real estate brokerages had colluded to increase agent commissions on real estate sales and purchases.

Dunaway-Seale stated that we included it in the Clever Real Estate analysis because the rule change has not yet taken effect.

In August, a finalized NAR settlement will be implemented, and there will be a clearer understanding that sellers are not liable for a buyer's real estate agent commissions, according to Claudia Cobreiro, the founder of Cobreiro Law in Coral Gables, Florida.

In some areas, including Miami, the multiple listing system (MLS) no longer includes commission rates.

According to the NAR, the new mandatory MLS policy changes will be implemented on August 17, 2024.

The practical side of it is that we are still seeing the notion that Realtors are needed," Cobreiro said. "However, 'that is the policy side of it,' she said. Most buyers might not have an extra $10,000 on top of closing costs and the down payment required for the purchase, Cobreiro said.

Sellers may not be required to pay a buyer's agent commission, but many still choose to do so as an additional motivation to attract buyers.

Ways to reduce costs

The closing costs are the only fixed expense for a seller, and the rest of the selling process depends on the seller's priorities or the urgency of selling the property, according to Dunaway-Seale.

Some methods for decreasing costs when selling a house include:

Homeowners may opt to sell their house without a real estate agent, according to Dunaway-Seale, potentially eliminating the need for real estate services altogether.

"However, they won't fetch as much profit," she remarked.

According to Clever Real Estate's report, 59% of sellers who did not hire an agent did so to save money. However, sellers who worked with an agent sold their house for approximately $34,000 more than those who did not.

Going through a real estate transaction without a real estate agent can be risky.

Cobreiro previously stated that while signing the contract is important, there are numerous other aspects of the transaction that require expertise and navigation, making it crucial to have someone who understands the process.

"Hamrick stated, "You're discussing one of the most significant and costly transactions of a lifetime. Although these fees may initially appear intimidating, the positive aspect is that most individuals are not entering this situation with the intention of losing money on the transaction.""

If sellers are not motivated to sell their home quickly, they may consider reducing concessions.

By reducing the budget for staging and marketing expenses, we can save money because these tools attract buyers, she stated.