Every cost, itemized
Here is the complete list of costs a typical home seller faces. Some are negotiable, some are fixed, and some are optional. All of them reduce your net proceeds.
Agent commission: 3-6% of sale price
This is the largest single cost of selling a home and the one most sellers underestimate. Historically, sellers paid a combined 5-6% commission split between the listing agent and the buyer's agent. On a $500,000 home, 6% is $30,000.
Following the 2024 NAR settlement, the rules changed. Sellers are no longer required to offer compensation to the buyer's agent through the MLS. This means the listing side and the buy side are now separate negotiations.
On the listing side, a traditional brokerage typically charges 2.5-3% of the sale price. On a $500,000 home, that is $12,500 to $15,000 just for the listing agent's commission.
Closing costs: 1-3% of sale price
Closing costs cover the transactional expenses of transferring ownership. They vary by state but typically include:
- Title insurance: protects the buyer (and their lender) against title defects. Seller typically pays for the owner's policy in many states. Cost: $1,000-$3,000.
- Transfer taxes: state and local taxes on the property transfer. Varies widely. Florida charges $0.70 per $100 of sale price ($3,500 on a $500,000 home). California varies by county.
- Escrow and settlement fees: the administrative cost of managing the closing process. Typically $500-$1,500.
- Recording fees: county charges to record the deed transfer. Usually under $200.
- Prorated property taxes: you pay your share of property taxes through the closing date.
Pre-sale costs: repairs, staging, and photography
These costs are optional in theory but practically necessary if you want top dollar. Buyers judge homes in the first 10 seconds of a listing photo and the first 30 seconds of a showing.
- Repairs: anything a buyer will see in an inspection gets negotiated down from the price. Fixing issues upfront is almost always cheaper than the concession a buyer demands. Budget: $500-$5,000+ depending on condition.
- Staging: ranges from decluttering and rearranging what you have (free) to professional staging with rented furniture ($2,000-$5,000+). NAR data suggests staged homes sell faster and for more money.
- Photography: professional listing photos cost $200-$500. They are the single highest-ROI expense in selling a home. Homes with professional photos sell faster and for higher prices in virtually every study on the topic.
Other costs that add up
- Home warranty: some sellers offer a home warranty to the buyer as an incentive. Cost: $300-$600.
- HOA transfer fees: if your property is in an HOA, expect $200-$500 in transfer documentation fees.
- Mortgage payoff: not a selling cost per se, but your remaining mortgage balance plus any prepayment penalties get subtracted from proceeds at closing.
The commission math on a $500,000 home
Here is where most of the money goes and where the biggest opportunity to save exists.
Traditional brokerage (6% total)
Meydomo Full Service Sell
Meydomo QuickSell
The difference between $30,000 and $499 + $1,499 is $28,002. That is not a rounding error. That is a car, a year of college tuition, or a significant down payment on your next home.
What about the buyer's side?
Since the 2024 NAR settlement, sellers are no longer required to offer buyer-agent compensation up front. In practice, most sellers still commit a cooperating amount on the listing, because it keeps the pool of interested buyers larger. Whatever you commit — often 2–3% — is the number that funds the buyer's side, and it comes off your proceeds just like it always did.
If the buyer comes through an outside agent they found on the MLS, that agent is paid the cooperating commission you offered. On a $500,000 home at 3%, that's $15,000 — seller-controlled, exactly as it has always worked.
If the buyer is represented by Meydomo through buy.meydomo.com, Meydomo's buy-side fee is a flat $1,998, paid by the seller out of the same cooperating compensation you already committed. Your commitment doesn't change — but Meydomo keeps only $1,998 of it, and any cooperative compensation above that is rebated to the buyer at closing, explicitly permitted under Florida Administrative Code R. 61J2-10.028(2). Your seller economics are identical either way; the only difference is who receives the balance.
The $28,000 nobody thought they were allowed to keep
The real estate industry has spent decades normalizing a fee structure that costs the average seller five figures. Most sellers do not even question it because they assume it is just how things work.
It is not. The commission is negotiable. It has always been negotiable. The problem was that until recently, there were not many alternatives that gave you real service at a lower price. You could pay 6% for a full-service agent, or you could go FSBO and do everything yourself. The middle ground barely existed.
Meydomo exists in that middle ground. Full-service brokerage, licensed in Florida, expanding state by state, with an AI coordinator that handles the 80% of agent work that is coordination and communication. The result is the same service for a fraction of the cost. The $28,000 stays with you.
Putting it all together: a $500,000 sale
| Expense | Traditional (6%) | Meydomo |
|---|---|---|
| Listing commission | $15,000 | $499 + $1,499 |
| Closing costs (est. 2%) | $10,000 | $10,000 |
| Repairs and staging | $3,000 | $3,000 |
| Photography | $350 | $350 |
| Total selling costs | $28,350 | $15,348 |
| You keep | $471,650 | $484,652 |
This example does not include buyer agent compensation, which is now a separate negotiation. Actual costs vary by state, county, and property specifics.
Next: understand the FSBO trade-off
Now that you know what selling costs, the question becomes whether to handle it yourself. The next guide, FSBO: What You Take On and What You Save, gives you the honest breakdown of for-sale-by-owner: what you save, what you absorb, and what the data says about outcomes.
See your actual numbers
Every home sale is different. Start with a HomeIQ report ($4.95) to get your valuation, then decide which path makes sense for your situation.
Request early accessWritten by Meydomo Editorial · Licensed broker reviewed