What Are the Real Costs of Selling a House the Traditional Way?

When you decide to sell your house, you probably think in terms of what you’ll gain: the selling price, the equity you’ve built, and the next chapter of your life. But many homeowners are caught off guard by the true costs involved in selling a home the traditional way — especially when working with a real estate agent.

These costs can eat into your profits significantly, and for some homeowners, they can make the difference between walking away with cash or barely breaking even.

In this guide, we’ll break down all the hidden and not-so-hidden expenses involved in selling your house through the traditional method, from agent commissions and repair costs to holding fees and concessions. We’ll also show you an alternative that could help you save time and money — and keep more of your equity.

1. Agent Commissions: 5%–6% of the Sale Price

The most well-known — and expensive — cost is the real estate agent’s commission.

In most cases, this is split between your listing agent and the buyer’s agent. Nationally, the typical commission is 5% to 6% of the home’s final selling price.

Example:
If you sell your home for $350,000, you’ll pay:

• 5% commission = $17,500

• 6% commission = $21,000

And remember — this comes straight out of your proceeds at closing.

Even if your agent does a great job, that’s a large chunk of change. Some sellers choose to go the FSBO (For Sale By Owner) route or sell directly to a cash buyer to avoid paying commission altogether.

 2. Repairs and Renovations: $5,000–$20,000+

If your home isn’t in top shape, a traditional real estate agent will likely recommend that you make repairs or upgrades before listing. This is because buyers expect homes to be “move-in ready” — especially if they’re using bank financing.

Common pre-sale repairs include:

• Interior & exterior painting

• Replacing carpets or flooring

• Updating kitchens or bathrooms

• Fixing HVAC, plumbing, or roof issues

• Landscaping and curb appeal upgrades

Estimated costs:

Type of Work	Typical Cost Range
Interior painting	$2,000 – $4,000
New carpet or flooring	$3,000 – $7,000
Minor kitchen updates	$5,000 – $15,000+
Roof repair or replacement	$3,000 – $12,000
Landscaping & curb appeal	$500 – $2,500

While these upgrades may help your home sell faster or for a higher price, they’re still upfront investments that come out of your pocket.

3. Cleaning, Staging & Photography: $1,000–$3,000+

Once repairs are done, your agent will recommend professional cleaning, home staging, and high-quality photography to make your listing stand out.

These services include:

• Deep cleaning (interior and exterior)

• Decluttering and depersonalizing

• Renting furniture or decor

• Hiring a staging expert

• Professional real estate photos

Why it matters:
Today’s buyers shop online first. If your home doesn’t look stunning in photos, you may never get a showing — let alone an offer.

Estimated total: $1,000–$3,000, depending on your home’s size and condition.

4. Holding Costs: Mortgage, Utilities, Taxes & Insurance

While your house is listed on the market, you’re still paying the monthly expenses to keep it running:

• Mortgage payments

• Property taxes

• Homeowners insurance

• Utility bills (electricity, water, gas, trash, internet, etc.)

• HOA fees (if applicable)

Average time to close on a traditionally sold home:

• 30–60 days on market

• 30–45 days from offer to close
  → That’s 60–90 days of ongoing expenses

Let’s say your monthly holding costs are $2,000. Over 3 months, that’s $6,000 you’ve spent just to keep the home market-ready — and that’s assuming no delays.

5. Buyer Concessions: $2,000–$10,000+

In competitive markets, sellers often have the upper hand. But in normal or slow markets, buyers may ask for seller concessions — where you, the seller, agree to pay a portion of their closing costs or offer credits for repairs discovered during inspections.

Common concessions include:

• Paying part or all of the buyer’s closing costs

• Lowering your sale price after the inspection

• Covering the cost of repairs

• Offering a home warranty

These can add $2,000 to $10,000+ in additional out-of-pocket expenses that eat into your final net proceeds.

6. Appraisal Gaps and Inspection Repairs

If your buyer is financing the home through a mortgage, the lender will require an appraisal. If the appraisal comes in lower than the agreed purchase price (which happens more often in changing markets), the deal could fall apart — or you’ll be pressured to lower the price.

Similarly, during the inspection period, buyers may request:

• Roof replacements

• Mold remediation

• Plumbing or electrical fixes

• Pest control or termite treatment

You could be looking at several thousand dollars in last-minute repairs just to keep the deal alive.

7. Closing Costs: 1%–3% of the Sale Price

Sellers typically cover part of the closing costs, even if the buyer is also paying some fees. These may include:

• Title insurance

• Escrow fees

• Transfer taxes

• Attorney or settlement fees

• Document recording fees

Expect to pay an additional 1%–3% of your home’s sale price in closing costs. On a $300,000 home, that’s another $3,000–$9,000.

What’s the Total Cost of Selling a House Traditionally?

Let’s put it all together.

Traditional Sale Cost Breakdown Example (Home Value: $350,000)

Expense	Estimated Cost
Agent commissions (6%)	$21,000
Repairs/updates	$8,000
Staging/cleaning/photos	$2,000
Holding costs (3 months @ $2K)	$6,000
Buyer concessions	$5,000
Closing costs (2%)	$7,000
Total Estimated Costs	$49,000

That’s nearly $50,000 in costs before you even count the emotional toll of a drawn-out sale, open houses, and negotiations.

The Alternative: Selling to a Cash Buyer

If those numbers made your stomach drop, don’t worry — there’s another way.

Selling your house to a local cash buyer or professional homebuyer can help you avoid:

• Agent commissions

• Repair costs

• Showings, cleanings, and staging

• Appraisal issues

• Buyer delays

• Concessions and closing fees

Cash buyers purchase homes as-is, pay all closing costs, and close on your timeline — sometimes in as little as 7 days.

Benefits of Selling to a Cash Buyer:

• Fast closing (skip the 60–90 day wait)

• No fees or commissions

• Sell as-is (no repairs, no cleaning)

• Certainty and simplicity

If your home needs work, or you’re relocating, behind on payments, or just want a stress-free sale, this could be the best option.

Is It Right for You?

A traditional sale might get you top dollar — but only if your house is in great condition, you’re not in a hurry, and you're prepared to spend upfront.

If you're more focused on convenience, speed, and avoiding risk, then a cash offer from a reputable buyer could net you more in the end by avoiding the hidden costs of a traditional sale.

Final Thoughts: Know Before You List

Selling a house the traditional way is more expensive than most homeowners realize. Between agent fees, repairs, staging, holding costs, and concessions, you could spend 10–15% of your home’s value just to get it sold.

Before you list with an agent, run the numbers for your situation. And if you’re looking for a faster, simpler way to sell your home — especially if it's not in perfect condition — we’re here to help.