The Short Answer: 8–10% of Your Sale Price (Unless You Know Better)
Selling a home involves more costs than most people expect. Between agent commissions, closing fees, repairs, and taxes, the total typically runs 8–10% of your sale price when using a traditional agent.
For a $750,000 home, that's $60,000–$75,000 gone before you pocket a dollar of equity.
But here's what most sellers don't realize: more than half of that total is the real estate commission — and it's the one cost you have the most control over.
On a $750,000 home, traditional 6% commission costs
$45,000ShopProp full-service flat fee
$4,495Same managing broker oversight. Same marketing. $40,505 difference.
Complete Breakdown: Every Cost of Selling a Home
1. Real Estate Agent Commission
5–6% of sale price (or $4,495 flat)
This is the single largest expense in any home sale. Traditionally, sellers pay 5–6% split between their listing agent and the buyer's agent. On a $1M home, that's $50,000–$60,000.
After the 2024 NAR settlement, the structure is changing. Sellers are no longer required to offer buyer agent compensation through the MLS, though many still choose to. The listing side commission is where sellers have the most leverage.
The flat-fee alternative: ShopProp charges $4,495 for full-service listing with a managing broker reviewing every transaction — whether the home is $400K or $7.5M. That's the same professional oversight for a fraction of the percentage-based cost.
2. Closing Costs (Seller's Share)
1–3% of sale price
These include:
- Title insurance (owner's policy): $1,000–$3,500 depending on state and sale price
- Escrow/settlement fees: $500–$2,000
- Transfer taxes: Vary widely by state — from $0 (TX) to 1.1%+ (some CA cities)
- Recording fees: $50–$250
- Attorney fees: Required in some states, $500–$1,500
- HOA transfer/document fees: $200–$500 if applicable
3. Pre-Sale Repairs & Improvements
$0–$15,000+
Not every home needs work, but most benefit from addressing:
- Inspection-related repairs: Roof, HVAC, plumbing, electrical ($2,000–$10,000)
- Cosmetic updates: Paint, fixtures, landscaping ($1,000–$5,000)
- Buyer-requested repairs: Negotiated after inspection ($500–$5,000)
A managing broker with a construction background (like ShopProp's) can distinguish between repairs that actually increase sale price and money pits that won't return their cost.
4. Home Staging
$0–$5,000
Professional staging costs $2,000–$5,000 for a typical home. Occupied homes may only need consultation ($300–$500). Vacant luxury homes benefit most from full staging. Some agents include staging; with ShopProp's flat fee, the savings on commission often more than cover professional staging.
5. Capital Gains Tax
$0 for most sellers (up to 15–20% on gains over exclusion)
Most sellers owe nothing thanks to the Section 121 exclusion: $250,000 for single filers, $500,000 for married couples filing jointly, as long as you've lived in the home 2 of the last 5 years.
If your gain exceeds the exclusion, the selling costs you pay — including agent commission — are deductible from your taxable gain. One more reason to keep records of every expense.
6. Mortgage Payoff & Prepayment Penalties
Varies (check your loan terms)
Your mortgage balance is paid at closing from the proceeds. Some older loans carry prepayment penalties (rare in recent years). Request a payoff statement from your lender 30 days before your expected closing date.
Total Cost Comparison: Traditional vs. Flat Fee
| Expense | $500K Home (Traditional) | $500K Home (ShopProp) |
|---|---|---|
| Listing agent commission | $15,000 (3%) | $4,495 (flat) |
| Buyer agent compensation | $12,500 (2.5%) | $12,500 (2.5%)* |
| Closing costs | $7,500 (1.5%) | $7,500 (1.5%) |
| Repairs & staging | $5,000 | $5,000 |
| Total | $40,000 (8%) | $29,495 (5.9%) |
| You save | — | $10,505 |
*Buyer agent compensation is negotiable and set by the seller. ShopProp can advise on competitive offers for your market.
| Expense | $1M Home (Traditional) | $1M Home (ShopProp) |
|---|---|---|
| Listing agent commission | $30,000 (3%) | $4,495 (flat) |
| Buyer agent compensation | $25,000 (2.5%) | $25,000 (2.5%)* |
| Closing costs | $15,000 (1.5%) | $15,000 (1.5%) |
| Repairs & staging | $7,000 | $7,000 |
| Total | $77,000 (7.7%) | $51,495 (5.1%) |
| You save | — | $25,505 |
| Expense | $3M Home (Traditional) | $3M Home (ShopProp) |
|---|---|---|
| Listing agent commission | $90,000 (3%) | $4,495 (flat) |
| Buyer agent compensation | $75,000 (2.5%) | $75,000 (2.5%)* |
| Closing costs | $30,000 (1%) | $30,000 (1%) |
| Repairs & staging | $10,000 | $10,000 |
| Total | $205,000 (6.8%) | $119,495 (4%) |
| You save | — | $85,505 |
The Pattern Is Clear
Every other selling cost is roughly the same regardless of which agent you choose. The commission is the only variable — and the only place where you can save $10,000 to $85,000+ without sacrificing service quality.
ShopProp's flat $4,495 fee includes full-service listing, professional photography, MLS placement, negotiation support, and a managing broker on every transaction. The fee doesn't scale with your home's value because the work doesn't scale either.
5 Ways to Reduce Your Selling Costs
- Switch to flat-fee listing. The single biggest cost reduction available. ShopProp's $4,495 full-service tier saves $10,505–$175,505 compared to a 3% listing commission on homes from $500K to $6M.
- Handle cosmetic repairs yourself. Paint, landscaping, and minor fixes are straightforward DIY territory. Save the budget for structural issues that matter to inspectors.
- Negotiate buyer agent compensation strategically. Post-NAR settlement, you can offer what makes sense for your market. Your listing agent should advise on competitive vs. minimum offers.
- Time your sale to avoid carrying costs. Every month of double mortgage payments, insurance, and utilities adds $2,000–$5,000+. Price right to sell within 30 days.
- Understand your tax situation early. If you qualify for the Section 121 exclusion, capital gains are likely $0. If not, selling costs (including commission) reduce your taxable gain.
What About FSBO? Does Selling Yourself Save Money?
For-sale-by-owner (FSBO) homes sell for a median of 23% less than agent-assisted sales according to NAR data. On a $750,000 home, that's $172,500 in lost value — far more than any commission savings.
FSBO also means handling pricing strategy, marketing, negotiations, legal disclosures, and contract management without professional support. In competitive markets, this puts sellers at a significant disadvantage.
A flat-fee model like ShopProp eliminates the need to choose between paying too much (percentage commission) and getting too little (FSBO). You get full-service representation for a fixed price — including a managing broker who reviews every document, disclosure, and negotiation.
State-by-State Cost Variations
Selling costs vary by state due to transfer taxes, attorney requirements, and local customs:
| State | Transfer Tax | Attorney Required? | Key Notes |
|---|---|---|---|
| Washington | 1.1–3% | No | Excise tax varies by sale price; higher rates for $1.5M+ |
| California | $1.10/$1,000 + city | No | Some cities add 0.5–1.5% transfer tax (SF, LA, Oakland) |
| Texas | None | No | No state transfer tax — among the lowest closing costs |
| Arizona | Minimal | No | $2 flat fee + county recording costs |
| Colorado | $0.01/$100 | No | Low transfer tax; some metro areas have additional fees |
| Virginia | $3.50/$1,000 | Required | Grantor tax + optional regional congestion relief tax |
| Michigan | $8.60/$1,000 | No | State + county transfer tax combined |
| Hawaii | 0.1–1% | No | Conveyance tax varies by property value; higher for investors |
ShopProp is licensed in all 8 states above — the same $4,495 flat fee applies regardless of location.
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Calculate Your Savings Get Started Chat with Our AI AssistantThe Bottom Line
Selling a house costs 8–10% of the sale price under the traditional model. The commission alone accounts for more than half of that total.
Every other cost — closing fees, repairs, staging, taxes — is roughly the same no matter which agent you choose. The commission is the one variable where you can save $10,000 to $180,000 without getting less service.
Since 2007, ShopProp has closed over 4,000 transactions at a flat fee with a managing broker on every deal. The math works because volume replaces markup — not because service is reduced.
That's how real estate should work.