Posted on September 2nd, 2025

 

Real estate agent fees are one of the biggest costs sellers face when putting a property on the market. These fees are usually charged as a percentage of the final sale price, most often landing between 5% and 6%. 

 

 

Understanding Real Estate Agent Fees

 

Real estate agent fees are one of the biggest costs sellers face when putting a property on the market. These fees are usually structured as a percentage of the final sale price, most often between 5% and 6%. For example, if your home sells for $300,000, the commission could cost between $15,000 and $18,000.

 

That amount is taken out of your proceeds at closing, reducing what you walk away with. Many homeowners are surprised when they realize just how much of their equity goes toward covering these commissions.

 

These fees are not just numbers on paper; they directly impact the financial outcome of your sale. Real estate agents often justify the expense by pointing to the services they provide, including marketing, negotiating offers, and handling legal paperwork.

 

While these are valuable services, sellers should remember that commission rates are not fixed. They can sometimes be negotiated, especially in competitive markets or with agents eager for business.

 

 

Identifying Hidden Costs of Selling a Home

 

Beyond the visible commission fees, homeowners face additional costs that often remain hidden until the process is underway. These can make a significant difference in how much money you retain from the sale. Here are some of the expenses that frequently catch sellers by surprise:

 

• Marketing expenses: Even when working with an agent, you may pay for professional photography, upgraded online listings, or targeted advertising to reach more buyers.

• Home staging: While staging can help showcase a property and attract stronger offers, hiring a professional stager can cost anywhere from a few hundred to several thousand dollars.

• Pre-sale maintenance: Small but necessary fixes, such as repairing leaky faucets or replacing worn carpet, quickly add up when preparing a house for market.

• Utility and holding costs: If the home sits unsold for several months, continuing to pay utilities, mortgage, taxes, and insurance further reduces your net gain.

 

These hidden costs are easy to underestimate but can substantially affect your bottom line. Sellers who plan ahead and set aside funds for these expenses are better prepared for the realities of the process. 

 

 

Calculating the Real Costs of Selling Your House

 

Closing costs are another major component of selling a home, and they deserve careful attention. These typically include items like escrow fees, attorney fees, and title insurance. While buyers often carry some of these expenses, sellers usually face 2% to 3% of the sale price in closing costs. On a $300,000 home, that could mean between $6,000 and $9,000 deducted at closing.

 

Alongside these fees, sellers often invest in updates to make their property competitive. Some of the most common upgrades include:

 

• Curb appeal improvements: Landscaping, new paint, or exterior repairs can create a strong first impression.

• Interior updates: New fixtures, lighting, or minor kitchen and bathroom improvements appeal to modern buyers.

• Full renovations: In some markets, sellers invest tens of thousands of dollars in remodeling to meet buyer expectations.

• Inspection-related repairs: Issues revealed during a buyer’s inspection, such as roofing or plumbing problems, often become the seller’s responsibility.

 

The key is striking a balance between investing enough to attract buyers and avoiding over-improvement that eats into your profits. While these updates can help your home sell faster, they must be weighed carefully against how much value they actually add. 

 

 

Avoiding Common Mistakes When Selling a Home

 

Even when sellers plan for agent fees, hidden costs, and closing expenses, mistakes during the selling process can still reduce profits. Two of the most frequent pitfalls involve skipping needed repairs and over-investing in unnecessary renovations.

 

Failing to address repairs before listing is a mistake that can discourage buyers. Issues such as chipped paint, leaky faucets, or outdated appliances create the impression that the property has not been maintained. Buyers may lower their offers significantly or avoid the property altogether. Taking the time to handle these repairs before listing can help maintain your home’s market value and speed up the selling process.

 

On the other hand, some sellers spend excessively on major upgrades expecting a high return. Luxury kitchen remodels or high-end bathroom overhauls often cost more than what they add to the final sale price. Instead of chasing large projects, sellers should focus on improvements that make the home appealing without draining resources. The most successful approach lies in balancing strategic updates with cost control, ensuring that the effort you put into preparing your home actually pays off.

 

 

Strategies to Save Money When Selling Your Home

 

For homeowners looking to reduce costs, there are practical strategies that can make the process more affordable while still attracting buyers. Here are a few approaches worth considering:

 

• For-sale-by-owner (FSBO): By handling the sale yourself, you avoid commission fees, though you’ll take on marketing and paperwork responsibilities.

• Leverage online tools: Using real estate platforms and social media allows you to market your property without expensive advertising.

• Time your sale wisely: Listing during peak seasons like spring or summer can help you attract more buyers and secure stronger offers.

• Focus on small, high-impact upgrades: Fresh paint, decluttering, and updated hardware are cost-effective ways to make your property more appealing.

 

These strategies are not about cutting corners but about spending smartly. Sellers who approach the process with a clear plan can retain more equity while still presenting a competitive home on the market. The goal is to reduce unnecessary costs, protect your investment, and still achieve a successful sale.

 

 

Related: Should You Fix Your Home Before Putting it on the Market?

 

 

Conclusion

 

Selling a home comes with many expenses that extend well beyond the real estate agent’s commission. From hidden marketing and staging costs to closing fees and unexpected repairs, these charges can take a large bite out of your profit.

 

Learning about these costs early allows you to make smarter decisions, avoid common pitfalls, and prepare for the financial reality of selling. With the right planning and strategies, you can limit unnecessary spending, attract buyers, and maximize the return on your property.

 

At Foreclosure Buyouts, we make selling simpler by offering a direct alternative to the traditional real estate process. Skip the agent fees, repairs, and months of uncertainty—get a free cash offer in Rhode Island today. Contact us to start your stress-free home-selling journey.