#1: Not Expecting Home-Selling Costs Okay, you’re selling a house and someone else is buying it. No need to prepare for any expenses, right? Big mistake! Don’t let these home-selling costs catch you by surprise: Agent commissions: Did you know sellers typically use their proceeds to cover the commissions for their listing agent and the buyer’s agent? According to most real estate websites, you’ll probably pay around 6% of your home price to cover agent commissions. So, if your home sells for $200,000, don’t be surprised if $12,000 of that goes to the agents who helped you seal the deal. Is it WORTH it? For SURE! A good agent will likely help you get more money for your house—enough to cover their commission and put more cash in your pocket (see Mistake #3). Closing costs: A seller’s share of the closing costs is usually 1–3% of the home price.1 These costs COULD include sales tax, a title transfer fee, attorney fees and a fee for whoever organizes the final transaction on closing day—like a title company or a lawyer. Staging costs: The cost to stage a home varies widely based on factors like where you live, the size of your home, how many rooms you want to stage, whether or not you’ll be renting decor, and different pay structures including an initial consultation and monthly fee. On average, home staging costs around $525–2,000.2  Home inspection repairs: It might be wise to pay a few hundred bucks for a home inspection before you even list your house. (See Mistake #5 below). Depending on the seriousness of the issues that come up, repairing your house could cost thousands or even hundreds of thousands of dollars! Sure, that doesn’t mean you have to pay to fix it. But if you don’t, buyers are definitely going to expect a discount. Seller concessions: Speaking of discounts, buyers may try to negotiate for a lower asking price—depending on the housing market. Or they might offer to pay your full asking price if you provide seller concessions. These might include an arrangement where you throw in items like your washer and dryer or pay all of their closing costs, which are usually 3–4% of your home's price.3 Your next home: Whether you're sizing up or down, make sure you can pay for your new house in cash or find a mortgage that fits your budget. We recommend keeping your monthly payment to 25% or less of your take-home pay on a 15-year fixed-rate mortgage. If that sounds challenging, first make sure you’re not carrying any non-mortgage debt and have a fully funded emergency fund. Then you’ll be financially SECURE enough to buy a home again. Moving expenses: Did you forget? You’re moving too! The average cost to move ranges anywhere from $750–2,000 (if you hire movers).4 And if you’re not moving directly into your new home after selling your old ONE, you’ll need to account for rental and storage fees. When you add up these expenses, the total can seem overwhelming if you’re not prepared for it. But don’t worry! A good real estate agent knows how to best arrange your home sale with these costs in mind.