If you’re thinking of selling your house in Maryland, you might be wondering:
How much does it cost to sell a house in Maryland?
And more importantly:
How can you save money on these costs?
Well, you’re in luck.
Because in this post, we’re going to:
1. Outline what the typical costs to sell a house in Maryland are
2. Different costs associated with common house selling methods
3. Tips to reduce some of the usual home selling costs in MD
By the end of this post, you’ll have a clear idea of how much it costs to sell a house in Maryland and how to choose the best method for your situation and goals.
Let’s dive right in.
Disclaimer: This blog post is intended for educational purposes only. As every real estate transaction is unique, Creo Home Buyers recommends you consult with a trusted advisor regarding your specific situation.
Typical Costs Involved When Selling a House in Maryland
If you’re looking to sell a house in Maryland, it’s important to understand the typical expenses associated with the process.
From agent commissions and closing costs to home repairs and staging fees, there are several expenses that home sellers need to consider before listing their property:
Maryland Agent Commissions
One of the major expenses home sellers in Maryland pay are agent commissions. Agent commissions are the fees that you pay to the real estate agents who help you sell your house.
Whether you hire a listing agent or you sell your house without an agent, you may find you are paying tens of thousands just in seller and buyer agent commissions alone.
Typically, real estate agent commissions are calculated as a percentage of the final sale price of your house. The average commission rate in Maryland is 5.5%, which is slightly higher than the national average of 5.1%¹.
This means that if you sell your house for $300,000, you’ll have to pay $16,500 in buyer and seller agent commissions.
That’s a lot of money, right?!
But what do you get for paying agent commissions?
Paying agent commissions means that you get the help of a professional who can handle the selling process for you. An agent can take care of most of the home selling process for you and handle closing. However, your agent may have a conflict of interest, may not share your vision or goals, and may not communicate with you well. Therefore, you should do your homework and find an agent who is reliable, skilled at determining home value in Maryland, and suitable for your selling situation.
So, is there a way to avoid paying agent commissions?
Yes, there is. You can sell your house without paying agent commissions by using one of these alternatives:
- Selling to a Cash Buyer: A cash buyer is someone who buys your house for cash without any financing contingencies. They typically buy homes with very few contingencies and no formal home inspections. They sometimes can close the deal in as little as 7 days when it’s time to sell fast. This way, you can save money on closing costs, repairs, taxes, and avoid paying agent fees in Maryland. Plus, you don’t have to worry about staging, showing, marketing your house!
- Selling by Owner: Selling by owner means that you handle everything yourself without hiring an agent. You determine your home’s value, set the price, market the house, negotiate with buyers, and handle the paperwork. When you offer a house for sale by owner, you can save money on commissions and have more control over the selling process. But you also have to invest more time, effort, and money into selling your house. And you have to deal with legal risks and liabilities and will still likely need to pay 2.5-3% for the buyer’s agent commission.
- Selling with a Flat-Fee Service: A flat-fee service is a company that charges you a fixed fee to list your home for sale on the MLS (Multiple Listing Service) and other platforms. They also may provide you with some basic services such as photos, signs, and contracts for an additional fee. This way, you can save money on commissions and reach more buyers than you might when trying to sell it yourself. But you still have to do most of the work yourself and pay for additional services if needed. Not to mention you’ll still likely be on the hook to pay for commission to the buyer’s agent when you sell your home in Maryland.
Closing Costs in Maryland
Besides the commission fee, another major cost to consider when selling a Maryland home are the closing costs.
Closing costs are the fees that you must pay to finalize the sale of your house. These can include title insurance, transfer taxes, recording fees, escrow fees, settlement fees, attorney fees, appraisal fees, inspection fees, survey fees, and more.
But keep in mind that closing costs for sellers can vary depending on several factors, such as:
- Location of your house: Different MD counties and cities have different tax rates and fees.
- Type of property: Condos and townhouses may have additional fees such as HOA dues and assessments.
- Type of loan: Different loans have different ways interest rates and pay-off fees are paid.
- Contract negotiation: You may be able to split or reduce some of the closing costs with the buyer.
So, how can you lower your closing costs?
If you want to lower your closing costs in Maryland, you can shop around for services and compare prices and reviews of different service providers. For example, you can look for the best deals on title insurance, attorney fees, appraisal fees, and more. This way, you can get quality service and save on seller closing costs in MD.
Home Repairs and Improvements
One of the largest costs for Maryland sellers are home repairs. These are the fixes and improvements that you can or must make to your house before selling it.
Repairs may be necessary in order to pass a house inspection, boost curb appeal, and increase your home’s value in Maryland. However, repairs can also be expensive and time-consuming, so you should prioritize the ones that have the most impact and return on investment. You may wish to consult with a real estate agent, a home stager, or a contractor to get advice on what repairs or improvements to make. A reliable home contractor can help explain how much you can expect to pay for home improvements before selling in MD.
How much do home repairs cost when selling in Maryland?
Repair costs can vary depending on several factors, such as:
- Condition of your house: The older and more worn-out your house is, the more repairs it will need.
- Type of repairs: Some repairs are more expensive and time-consuming than others. For example, fixing a leaky roof or a faulty electrical system will cost more than painting a wall or replacing a faucet.
- Market expectations: Some repairs are more important and desirable than others. For example, buyers may expect your house to have a modern kitchen or a renovated bathroom, but they may not care about a finished basement or a sunroom.
What kind of repairs should you pay for before trying to sell your Maryland house?
Well, it depends on your situation and selling goals. But generally, you should focus on these types of repairs:
- Safety issues: Repairs that affect the health and safety of you and your buyers. For example, fixing mold, asbestos, radon, termites, or structural damage.
- Cosmetic updates: Repairs that improve the appearance and appeal of your house. For example, painting, flooring, lighting, landscaping, or cleaning.
- Major defects: Repairs that affect the functionality and performance of your house. For example, repairing or replacing the roof, HVAC system, plumbing system, or electrical system.
But what if you don’t have the time, money, or energy to do repairs?
Don’t worry. You can still sell your house without doing any repairs by using one of these ways:
- Doing them yourself: If you have some DIY skills and tools, you can save money by doing some minor repairs yourself. You can also ask for help from friends or family members who have experience in home improvement.
- Hiring a contractor: If you need professional help for some major repairs, you can hire a contractor to do them for you. You can also negotiate with them to get the best price and quality.
- Selling “as-is”: If you don’t want to deal with any repairs at all, you can sell your house as-is. This means that the buyer must accept your house’s current condition and that you won’t make any changes or repairs before you sell. However, you must disclose any known issues or defects to the buyer to avoid potential legal costs if issues arise down the line.
Home Staging
Home staging is one of those optional costs for sellers in Maryland. Staging is the process of preparing and decorating your house for sale.
Staging can help you sell faster, sell for more money, and sell easier. Staging can make your house look more appealing, inviting, valuable, spacious, bright, and better than other listings. It can also create a positive first impression, emotional connection, move-in readiness, and potential for buyers.
However, staging also costs money and time, and you may need to hire a professional stager or rent furniture and accessories.
But how much does staging cost?
The average home staging costs are $1,500. This means that if you sell your house for $300,000, you’ll have to pay $1,500 in staging.
But keep in mind that staging costs can vary depending on several factors, such as:
- Size of your house: The bigger your house is, the more furniture and accessories it will need and the higher your home staging fee will likely be.
- Style of your house: The more unique or outdated your house is, the more updates and changes it may need.
- Level of staging: The more rooms and areas you stage, the more money it will cost.
- Duration of staging: The longer you keep your house staged, the more rent or fees you will pay.
So, what kind of staging should you do?
Well, it depends
Tax Expenses of Selling Property
When you sell a house in Maryland, you have to pay taxes to the state and the county where your property is located. These taxes are based on the purchase price of your house and can vary depending on the county your property is located in and the type of sale it is.
The state transfer tax in Maryland is 0.5% of the purchase price. The county transfer tax and recordation tax can range from 0% to 1.5% of the purchase price, depending on the county.
For example, if you sell your house for $300,000 in Baltimore County, you will have to pay $1,500 in state transfer tax and $4,200 in county transfer tax and recordation tax. These taxes are usually split between the buyer and the seller, unless otherwise agreed upon.
You should consult with your agent or a tax professional to determine how much taxes you will have to pay when you sell your house in Maryland.
Here are some ways you can lower your MD home sale tax costs?
Here are some ways:
- Claim the capital gains exclusion: If you meet certain requirements, you can exclude up to $250,000 ($500,000 for married couples) of your profit from income tax. To qualify, you must have owned and lived in your house for at least two of the last five years before selling it. You must also not have claimed this exclusion for another sale within the last two years.
- Deduct your home sale expenses: You can deduct some of the expenses that you incur from selling your house from your income tax. These include agent commissions, closing costs, advertising costs, and legal fees. You can also deduct some of the improvements that you made to your house within 90 days before selling it, such as painting, landscaping, or repairing.
- Time your sale: You can time your sale to take advantage of lower tax rates or exemptions. For example, you can sell your house in a year when your income is lower or when you qualify for a tax credit or a tax break. You can also sell your house before or after a major life event, such as marriage, divorce, retirement, or relocation.
Whether you’re a first-time seller or have sold multiple properties in the past, understanding the typical expenses associated with selling a house in Maryland can help you budget accordingly and ensure that you get the most out of your sale.
Additionally, knowing the costs associated with the most common ways to sell your home in MD can help you choose the right method for you and your budget.
Comparison of Costs for Different Selling Methods
Now that you know what factors affect the costs of selling a house in Maryland, let’s take a look at how these costs compare for different selling methods.
| Selling Method | Average Cost | Pros | Cons |
|---|---|---|---|
| Listing with an agent | 5.11% commission + 0.8% closing costs = 5.91% of sale price | – Highest possible price – Professional guidance and service – Access to MLS and buyers | – High commissions – Long process – Repairs and staging required |
| Selling by owner | 0% commission + 0.8% closing costs = 0.8% of sale price | – No commissions – More control – No repairs or staging required | – More time and effort – Legal risks and liabilities – Less exposure and buyers |
| Selling to an investor | 0% commission + 0% closing costs = 0% of sale price | – Fast and convenient – No fees or deductions – No repairs or staging required | – Lower offer – Less negotiation – Need to find a reputable investor |
| Selling through an iBuyer | 7% to 13% fees + 0.8% closing costs = 7.8% to 13.8% of sale price | – Fast and easy – Instant offer – Flexible and simple process | – Low offer – Hidden fees – Limited availability and criteria |
To give you an idea of what to expect, below we’ll show examples of fees a home seller pays in Maryland based on a home sale price of $360,000:
Listing with an Agent
Listing with an agent is the most common way of selling a house in Maryland. This method involves hiring a professional agent who will help you price, market, show, negotiate, and close the sale of your house. The main advantage of this method is that you can leverage the agent’s expertise, network, and resources to reach more buyers and get a higher price. The main disadvantage of this method is that you have to pay a hefty commission fee to the agent.
Here are some of the costs associated with listing with an agent:
| 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.
Selling by Owner
Selling by owner is another way of selling a house in Maryland. This method involves handling everything yourself, from pricing to paperwork. The main advantage of this method is that you can save on the commission fee and have more control over the process. The main disadvantage of this method is that you have to invest more time, money, and energy into marketing your house and finding qualified buyers.
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.
Selling to an Investor or a Cash Buyer
Selling to an investor or a cash buyer is another way of selling a house in Maryland. This method involves selling your house as-is to a company or an individual who will pay you cash and close quickly. The main advantage of this method is that you can avoid paying any commission or fees and sell your house fast and hassle-free. You won’t even have to pay closing costs in Maryland when you sell to a professional cash buyer. However, the main disadvantage of this method is that you will likely receive a lower offer than the market value.
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.
Each selling method has its pros and cons when it comes to the costs of selling a house in Maryland. The best method for you depends on your situation and goals. For example, if you want to sell your house quickly and avoid any hassle or expense, selling to an investor or a cash buyer might be the best option for you. However, if you want to get the highest possible price and don’t mind waiting and spending some money on repairs and fees, listing with an agent might be the best option for you.
How to Save Money on the Costs of Selling a House in Maryland
There are a lot of fees to cover the costs of selling real estate. These selling costs can be very expensive for the average Maryland home seller. Fortunately, there are ways to save money on Maryland house selling costs and still get a good deal for your house.
The key is to choose the best selling method for your situation and goals. Here are some of the benefits and drawbacks of different selling methods and some tips and advice on how to save money on Maryland house selling costs.
Traditional Agents
Traditional agents are the most popular way of selling a house in Maryland. They can help you with every aspect of the selling process, from pricing to closing. However, they also charge a high commission fee, which can eat into your profit. Here are some of the pros and cons of selling with a traditional agent:
- Pros:
- You can get access to the multiple listing service (MLS), which exposes your house to more buyers.
- You can get professional guidance and advice on pricing, marketing, negotiating, and closing.
- You can get assistance with handling the paperwork and legal issues.
- Cons:
- You have to pay a commission fee of around 6% of the sale price, which can be thousands of dollars.
- You have to spend money on repairs and staging to make your house appealing to buyers.
- You have to wait for months until you find a buyer and close the deal.
If you decide to sell with a traditional agent, here are some tips on how to save money on Maryland house selling costs:
- Compare different agents and their fees, services, and track records. Choose an agent who has experience and knowledge in your local market and who can offer you a fair and competitive commission rate.
- Negotiate with your agent on the commission fee and other terms. You might be able to lower the commission fee or get some services or expenses covered by the agent.
- Price your house right from the start. Don’t overprice or underprice your house, as this can lead to fewer offers or lower profits. Use market data and comparable sales to determine the best price for your house.
- Be flexible and cooperative with your agent and potential buyers. Respond to inquiries and requests promptly, accommodate showings and open houses, and be willing to make reasonable concessions or repairs if needed.
iBuyers
iBuyers are online companies that use technology and data to make instant offers for houses. They can buy your house in as little as a few days and handle everything for you. However, they also offer low prices and charge hidden fees, which can reduce your profit. Here are some of the pros and cons of selling to an iBuyer:
- Pros:
- You can get cash for your Maryland house selling FSBO and hassle-free, without any repairs or staging.
- You can avoid paying any commission or fees to an agent.
- You can choose your closing date and get paid in cash.
- Cons:
- You have to accept a lower offer than the market value for your house, which can be 10% to 20% less.
- You have to pay hidden fees, such as service fees, holding fees, inspection fees, repair fees, and more, which can add up to 7% to 15% of the sale price.
- You have limited options, as iBuyers only operate in certain markets and only buy certain types of houses.
If you decide to sell to an iBuyer, here are some tips on how to save money on Maryland house selling costs:
- Compare different iBuyers and their offers, fees, and terms. Choose an iBuyer who has a good reputation and who can offer you a fair and transparent deal.
- Negotiate with the iBuyer on the offer price and the fees. You might be able to get a higher offer or lower fees if you have evidence or data to support your case.
- Review the contract carefully before signing it. Make sure you understand what you are agreeing to and what you are giving up. Look out for any clauses or contingencies that might affect your rights or obligations.
Save on Home Selling Costs in Maryland and Get Cash Fast
If you’re looking for a fast, easy, and hassle-free way to sell your house in Maryland, you might want to consider selling it directly to Creo Home Buyers. We are a local company that has been buying houses in Maryland since 2018. We have helped numerous Maryland home sellers avoid paying closing costs or agent fees in order to sell their house.
If you are interested in saving money on Maryland house selling costs request a fair cash offer for your house. We buy Maryland houses in any condition and location.
Here’s how the process works:
- Fill out a simple form online or call us directly. You just need to provide some basic information about your house, such as the address, the size, the condition, and the reason for selling. You can also upload some photos or videos of your house if you want.
- Receive a fair cash offer typically within 24 hours. Creo Home Buyers will review your information and contact you with a no-obligation cash offer for your house. They will also answer any questions or concerns you might have and explain how they came up with the offer price.
- Choose your closing date and get paid in cash. If you accept the offer, you can choose the closing date that works best for you. It can be as soon as 7 days or as long as you need. Creo Home Buyers will handle all the paperwork and details for you. You don’t have to pay any commissions, fees, repairs, or closing costs. You just have to show up at the closing and collect your cash.
That’s it! Selling your house to Creo Home Buyers is that simple and straightforward. You can avoid all the hassle and expense of selling your house the traditional way and get rid of your unwanted property in no time.