The Average Costs to Sell a House in Maryland
Selling a house in Maryland involves various costs that homeowners need to be aware of. From agent commissions to closing costs, home repairs, and seller concessions, these costs can add up quickly.
According to US News, it costs the average home seller 10 to 15% of the final sale price to sell a house.
The average home sale value in Maryland is over $400,000 according to Zillow. So you can expect to pay anywhere from $40,000 to $60,000 to sell the average house in Maryland.
Understanding the different costs needed to sell will help ensure you have a realistic expectation of what you’ll pay and help you determine the most cost-effective way for you to sell your Maryland home.
In this blog post, we will explore the average costs to sell a typical home in Maryland, common ways to sell, and how to save money during the house selling process.
Disclaimer: This blog post provides general information on Maryland real estate and is not personalized advice. Maryland Estates, LLC, doing business as Creo Home Buyers, and its authors are not liable for the accuracy or use of this information; consult with a trusted real estate professional or attorney for personalized guidance regarding your unique situation.
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Average Costs Involved When Selling a House in Maryland
Most Maryland home sellers want to know what it really costs to sell so they can determine what their net proceeds might be.
Below we break down where you can expect to spend money on various fees and expenses on your home sale.
Maryland Agent Commissions: 5-6% of Sale Price
One of the most common expenses when selling a Maryland house is the commission paid to real estate agents. Real estate agents typically charge a percentage of the final sale price as their commission fee.
Commissions typically range from 5% to 6% of the sale price, depending on the agent and services provided. Realtor fees are divided between the buyer’s agent and the seller’s agent.
One advantage of working with an agent is that they can provide you with insights into your home’s value. While working with an agent can provide valuable expertise and support, it’s essential to factor in these commissions when calculating your home selling expenses.
Cost Saving Tip: Realtor commissions can be significantly reduced or even eliminated entirely when you list your house with a discount real estate broker or sell your property directly to a cash buyer or iBuyers for no cost.
Closing Costs in Maryland: 2-5% of Sale Price
Another expense to consider when selling are your closing costs. These costs include fees related to the transfer of ownership, such as attorney fees, title search fees, title insurance, and transfer taxes.
Closing costs for the average Maryland home seller typically range from 2% to 5% of the total home sale price. Most often these expenses are evenly split between buyers and sellers.
Cost Saving Tip: If you choose to sell directly to home investors, total seller closing costs can be avoided entirely.
Home Repairs and Improvements: Varied Costs
Prior to listing your home, you will likely need to perform repairs or improvements to increase the value and pass a formal lender required home inspection.
The cost of these renovations will vary widely depending on the condition of your property and how much work is needed to sell the house. Take a look at recently sold homes in your neighborhood. How long did they sit on the market? Were they renovated?
Your listing agent can also provide professional insight into what buyers are looking for and how to improve your home to get the most “bang for your buck” when you sell.
Cost Saving Tip: In certain Maryland neighborhoods, like Towson or Lutherville, the average home values are quite high. Sellers of older homes in certain areas can still fetch high prices without performing renovations. So take a look to see what other sellers are doing before you spend thousands of dollars on renovation mistakes that could actually lower your home’s value.
Home Staging: 0-1% of Sale Price
Home staging involves making your home look its best by arranging furniture, adding decorations, and decluttering.
Hiring a professional stager can cost a few hundred to a few thousand dollars, but it can greatly enhance the visual appeal of your home and potentially increase its sale price. Many realtors offer this service as part of their marketing plan as well.
However, staging is an optional selling expense. In fact, we have successfully sold several homes in Maryland without any staging as a way to lower our total property selling costs.
Cost Saving Tip: Some sellers are using ‘virtual staging,’ a budget-friendly alternative to traditional home staging. This method involves digitally adding furniture and decor to online home photos. These pictures let you showcase specific features without the added cost and hassle of physical furniture and decorations.
Seller Concessions and Other Fees: 2-8% of Sale Price
Seller concessions are worth keeping in mind when you’re selling a home in Maryland. They’re like a helping hand from sellers to cover some of the buyer’s expenses, like additional improvements that need to be completed or assisting with buyer closing costs.
Home sellers might also need to cover expenses like attorney fees, miscellaneous costs associated with preparing the home for sale, homeowners association (HOA) fees, paying off a mortgage, and any concessions made to the buyer.
Buyers may even request a home warranty as part of the negotiation process. A home warranty typically covers major systems and appliances in the house, and can potentially attract more buyers. However, it’s important to carefully consider the cost of a warranty and whether it helps your bottomline.
Tax Expenses of Selling Property: Costs Vary
Maryland sellers also can expect to pay various property taxes. Consulting with a tax professional can help you understand any potential capital gains taxes or other tax liabilities that may arise from the sale of your property.
Maryland imposes a state transfer tax at a rate of 0.25% of the sale price. In addition to this, various counties may have their own county transfer taxes, usually ranging from 0.5% to 1.5%. However, if the home you are selling is located in Calvert, Carroll, or Frederick County you are not required to pay a county transfer tax.
Nonresident Sellers: If you have a home for sale in Maryland but live out of state, the sale may also be subject to an additional nonresident transfer tax. The nonresident withholding tax ranges from 8-8.25% of the total property sale payment made to the seller. The final rate will depend on if the property is held by an individual or an entity.
Comparison of Costs for Different Selling Methods
When it’s time to sell your home, you have several options for how to proceed. Each selling approach comes with its own set of costs and benefits.
To give you an idea of what to expect, below we’ll show examples of actual costs a home seller pays in Maryland based on a home sale price of $360,000:
Listing with an Agent
Listing your home with a real estate agent involves paying a commission, but it offers the advantage of professional marketing, negotiation expertise, and access to a broader pool of potential buyers.
However, it is essential to compare the commission rates and services offered by different agents to ensure you are getting the best value.
| Cost | Amount |
|---|---|
| Commission fee | $21,600 (6% of $360,000) |
| Repair costs | $10,000 (estimated) |
| Staging costs | $1,500 (average) |
| Marketing costs | $1,000 (average) |
| Closing costs | $21,600 – $36,000 (6% – 10% of $360,000) |
| Total costs | $55,700 – $70,100 |
As you can see, listing with an agent can cost you anywhere from $55,700 to $70,100, which is about 15% to 19% of the sale price. This means that you might end up with only $289,900 to $304,300 in net profit.
Pros & Cons
- Agent commissions: 5-6% of the sale price.
- Potential additional costs for staging and remodeling.
- Marketing and listing fees (if applicable but your agent usually pays these).
- Assistance with negotiations and paperwork.
Selling by Owner
You won’t have to pay seller commissions when selling your home by owner in Maryland, but you’ll need to take on the responsibilities typically handled by an agent.
This includes marketing, negotiating, and preparing the necessary paperwork. It’s important to consider whether you have the knowledge and time to handle these sale by owner tasks effectively.
Here are some of the costs associated with selling by owner:
| Cost | Amount |
|---|---|
| Commission fee | $9,000 – $10,800 (2.5% – 3% of $360,000) |
| Repair costs | $10,000 (estimated) |
| Staging costs | $1,500 (average) |
| Marketing costs | $2,000 (estimated) |
| Closing costs | $21,600 – $36,000 (6% – 10% of $360,000) |
| Total costs | $44,100 – $60,300 |
As you can see, selling by owner can cost you anywhere from $44,100 to $60,300, which is about 12% to 17% of the sale price. This means that you might end up with only $299,700 to $315,900 in net profit. Note that the commission fee in this case is the fee that you might have to pay to the buyer’s agent if they are represented by one. If you sell your house to a buyer who is not working with an agent, you can save this fee.
Pros & Cons
- No seller agent commissions, but you may still pay a buyer’s agent commission (2-3% of sale price).
- Marketing and listing expenses.
- Handling negotiations and paperwork yourself.
- Potential longer time on the market.
Selling to an Investor or a Cash Buyer
Selling to an investor or a cash buyer can provide a quick and hassle-free sale without the need for renovations or staging. However, you may receive a lower sale price compared to listing with an agent or selling by owner.
Here are some of the costs associated with selling a home in Maryland to investor or a cash buyer:
| Cost | Amount |
|---|---|
| Commission fee | $0 |
| Repair costs | $0 |
| Staging costs | $0 |
| Marketing costs | $0 |
| Closing costs | $0 |
| Total costs | $0 |
As you can see, selling to an investor or a cash buyer can cost you nothing, which is 0% of the sale price. However, this also means that you might receive a lower offer than the market value. For example, if an investor or a cash buyer offers you 80% of the market value for your house, you will only get $288,000 in gross profit. This means that you might end up with only $288,000 in net profit.
It’s important to weigh the benefits of a fast sale against the potential difference in sale price.
Pros & Cons
- No agent commissions, fees, or costs.
- May sell at a slightly lower price.
- Minimal or no repair costs.
- Quick closing, often within days.
Choosing how to sell your Maryland home depends on your goals. If getting the most money is your priority and you’re okay with waiting and some costs, using an agent is a good option. If you want full control, a ‘For Sale By Owner’ (FSBO) approach is possible, but it comes with extra responsibilities. If you want a quick, hassle-free sale, consider selling to an investor or cash buyer.
How to Save Money on the Costs of a Maryland Home Sale
Now that we’ve outlined the typical costs and various home sale methods, let’s look at things sellers in Maryland can do to save money and net more from home sale proceeds:
- Compare real estate agent fees: Interview multiple agents to find out their commission rates. Some agents may be willing to lower their fees to secure your listing, especially in a competitive seller market.
- Minimize repairs: While some repairs are necessary, it’s essential to prioritize and focus on the most critical areas that potential buyers are likely to notice. By minimizing unnecessary repairs, you can save on both time and money.
- Consider selling as-is: If you don’t want to invest in extensive repairs and improvements, selling to an investor or cash buyer might be a way to save money on your home sale expenses.
- Using a flat-rate MLS listing: Another option is to consider selling your house using a flat fee MLS service, which can significantly reduce the cost of listing and seller agent fees.
- Negotiate closing costs: In some cases, sellers can negotiate with buyers to share or cover a portion of the closing costs.
- Shop for title services: While title insurance is essential, you can shop around for the best rates on title-related services to save some money. You may be able to negotiate some title fees to further reduce your selling costs.
- Consult with a tax professional: To minimize capital gains tax, consider consulting with a tax professional to explore potential deductions and exemptions.
You can consider several strategies to lower the selling fees when selling your house in Maryland.
Including negotiating lower agent commissions, selling the house “as-is” to avoid repairs, staging the house yourself, and exploring alternative selling options such as selling to cash home buyers or using a flat-fee listing service.
After exploring our tips to save a lot of money, we recommend you check out the home sale calculator by Open Door to help you answer the question, “How much will I make selling my house?”
Save on Home Selling Costs in Maryland and Get Cash Fast
The cost of selling a house can vary greatly, but with careful planning and consideration of your options, you can reduce your expenses and maximize profit.
As you navigate the costs of selling your Maryland home, keep in mind the most common options available:
- hire a an agent
- sell by owner (FSBO)
- quick cash sale to an investor
Understanding the costs involved with each selling method and implementing cost-saving strategies will help you achieve a successful and financially rewarding home sale.
If you’re looking to save time and get cash fast, consider reaching out to us at Creo Home Buyers. We can provide you with a competitive cash offer for your property.
Request your free, no-obligation home offer from Creo Home Buyers today and save on home selling costs in Maryland.
How to Sell Your House for FREE!
You really can sell your house in any condition and avoid paying commissions or closing costs. All of our offers come with no obligation or pressure to accept.
Sell your house fast AS-IS in without paying agent fees, making repairs, or even cleaning. Close on your schedule.
See how much we can offer for your house today!
FAQ About Home Selling Costs
What are some additional costs when selling a house in Maryland?
In addition to closing costs and realtor commissions, other expenses can include costs for marketing, hiring movers, obtaining packing supplies, and any necessary repairs that need to be made before listing the property. It’s a good idea to budget for these additional expenses to ensure a smooth selling process.
How long does it typically take to sell a house in Maryland?
On average, houses in Maryland can take anywhere from a few weeks to a few months to sell. If your house isn’t selling, working closely with a knowledgeable real estate agent or selling to a cash buyer directly can help you navigate the selling process and potentially sell faster.