Most sellers focus on the sale price and forget the other number that matters more: what you actually walk away with. Selling a house is expensive — far more expensive than most people expect. On a $400,000 home, total selling costs typically range from $32,000 to $48,000, leaving you with $352,000 to $368,000. That 8–12% cost eats significantly into your equity, especially if you've only owned the home for a few years.
Understanding every cost before you list allows you to price strategically, negotiate intelligently, and make informed decisions about which expenses are avoidable and which are not.
Here is every typical cost when selling a $400,000 home, from largest to smallest:
Agent commission is by far the largest selling cost. The traditional commission structure is 5–6% of the sale price, split between the listing agent and the buyer's agent. On a $400,000 sale at 5.5%, that's $22,000 — more than many sellers' entire annual housing payment.
Since the 2024 NAR settlement, commission structures have shifted. Sellers are no longer required to offer compensation to the buyer's agent through the MLS. Some sellers are offering 2–2.5% to the buyer's agent (down from the traditional 2.5–3%) or offering nothing and letting buyers negotiate their own agent's fee. The listing agent's commission typically remains 2.5–3%.
Commission is negotiable. In a hot market where homes sell in days, a listing agent may accept 1–1.5% for the listing side. In a slow market, you may need to offer the full traditional rate to attract agents who will show your home to buyers.
Seller closing costs include the title insurance policy you provide to the buyer (required in most states, $1,000–$2,500), escrow and settlement fees ($500–$1,500), attorney fees ($500–$1,500 in states that require a real estate attorney), recording fees ($50–$250), and wire transfer fees ($25–$50). These costs are relatively fixed and hard to negotiate.
Transfer taxes are imposed by state, county, or city governments when property ownership changes hands. They vary enormously by location. In Texas, Montana, and several other states, there is no transfer tax. In Delaware, the combined transfer tax is about 4%. In most states, it falls between 0.1% and 1%.
On a $400,000 sale: in Pennsylvania, the transfer tax is about 2% ($8,000 — typically split equally between buyer and seller, so $4,000 for you). In California, it's about 0.11% ($440). In New York City, it can exceed 1.4% ($5,600+) on properties over $500,000 when you add the city and state taxes together. Check your specific state and county rates.
Most homes need some work before listing. Common pre-sale repairs include: interior painting ($2,000–$4,000 for a 2,000 sq ft home), carpet cleaning or replacement ($1,500–$4,000), minor plumbing and electrical fixes ($500–$1,500), landscaping cleanup ($500–$2,000), and addressing any issues flagged in a pre-listing inspection.
Professional staging costs $1,500–$5,000 per month for occupied staging (rearranging and supplementing your furniture) or $2,000–$6,000 per month for vacant staging (bringing in rented furniture). Staging isn't mandatory, but NAR reports that staged homes sell for 1–5% more than non-staged homes on average. On a $400,000 home, even a 2% premium ($8,000) easily covers the cost.
Many sellers provide a one-year home warranty to the buyer as a selling incentive. It covers major systems (HVAC, plumbing, electrical) and appliances for the first year of ownership. Cost: $400–$600 for basic coverage. It's a small price that reduces buyer anxiety and can prevent post-sale disputes.
You're responsible for property taxes through the date of closing. If you've been paying taxes in arrears (common in many states), you'll owe a prorated amount at closing. On a $400,000 home with a 1.2% tax rate ($4,800/year), selling in June means you owe approximately $2,400 for January through June. HOA dues are similarly prorated.
Local moves (under 50 miles) with professional movers cost $1,500–$3,500 depending on home size. Long-distance moves average $4,000–$8,000. DIY with a rental truck costs $500–$1,500 for local and $2,000–$4,000 for long-distance. Don't forget the cost of cleaning the home after move-out — a professional deep clean runs $200–$500.
If you've lived in the home for at least two of the last five years, you can exclude up to $250,000 in capital gains ($500,000 for married filing jointly) from federal income tax. Most sellers owe nothing. But if your profit exceeds the exclusion — common in hot markets where homes appreciated $300,000+ — you'll owe long-term capital gains tax (0%, 15%, or 20% depending on income) on the excess.
Adding it all up for our $400,000 home: agent commission ($22,000) + closing costs ($5,000) + transfer taxes ($2,000 average) + repairs/staging ($5,000) + home warranty ($500) + prorated taxes ($2,400) + moving ($3,000) = approximately $39,900, or about 10% of the sale price. Your net proceeds: roughly $360,000 before any remaining mortgage payoff.
If you still owe $250,000 on your mortgage, your check at closing is approximately $110,000. Many sellers are surprised by how small this number is relative to their sale price. This is why tracking your equity position is important — and why selling within the first few years of ownership (when you have minimal equity) can actually cost you money after selling expenses.
Start by interviewing three to five agents and asking each what commission rate they'll accept. In competitive markets, many agents will list for 1–2% on the listing side, especially for homes priced above $400,000. Some full-service agents offer tiered pricing: a lower rate if the home sells within 30 days, the standard rate if it takes longer.
Flat-fee MLS listing services charge $300–$500 to list your home on the MLS (where 90% of buyers search). You handle showings, negotiations, and paperwork yourself, or hire an attorney for $1,000–$2,000 to handle the contract work. Total cost: $1,300–$2,500 versus $10,000–$12,000 for a traditional listing agent. You still need to decide whether to offer compensation to buyer's agents.
FSBO eliminates the listing agent commission entirely. NAR data shows that FSBO homes sold for a median of $310,000 versus $405,000 for agent-listed homes in 2024 — but this is partly because FSBO sales are more common for lower-value properties and sales between family members. In an apples-to-apples comparison, the gap narrows significantly.
FSBO works best for homes in hot markets that sell themselves, when you already have a buyer lined up (friend, family, neighbor), or when you have real estate knowledge and are comfortable with contracts, disclosures, and negotiation. If you go FSBO, hire a real estate attorney ($1,000–$2,000) to review all paperwork.
Painting your own interior saves $1,500–$3,000. Basic landscaping (mulch, trimmed hedges, mowed lawn, potted plants at the entry) costs under $500 DIY versus $2,000+ professional. Instead of professional staging, declutter aggressively (remove 50% of your belongings), deep clean everything, and add a few inexpensive touches: fresh white towels in bathrooms, a new doormat, simple throw pillows.
If you owe $380,000 on a home worth $400,000, selling would cost approximately $40,000 in expenses — meaning you'd need to bring $20,000 to closing just to sell your house. This happens more often than you'd think, especially for homeowners who bought in the last two to three years with low down payments.
Before listing, calculate your realistic net proceeds. Take the estimated sale price, subtract your remaining mortgage balance, and subtract 8–10% for selling costs. If the result is negative or uncomfortably small, waiting for more appreciation may be the better financial move.
Use our seller net proceeds calculator at /tools/seller-net-proceeds-calculator to run the numbers with your specific sale price, mortgage balance, and local costs. It breaks down every expense and shows you exactly what you'll walk away with.