What’s the ‘true cost’ of selling your NC home in today’s market? It depends.

It may feel like it’s pricey to sell your home in the Triangle, but a new study suggests otherwise.

In North Carolina, the typical homeowner this year has spent roughly 11% of the home’s purchase price on selling costs, according to Clever Real Estate, a Missouri-based real estate data company.

For a $335,974 home — the median value or “middle” price in the state — the seller paid about $37,380 for agent commission, repairs, closing costs and other expenses.

To be clear: It’s just an average. Expenses varied greatly depending on ZIP code and the home’s condition. Methods to calculate costs also differ by data company.

The report found closing costs ranged from $16,175 to $44,332 — significantly less than the nation’s average.

In the U.S., sellers reported spending nearly 14% of the home’s purchase price in 2022. For a $393,500 home — the nation’s median-priced home, according to the report – that was about $54,616 for agent commission, repairs, closing costs and other expenses.

“With high costs eating away at profits,” in a sluggish market, “89% of recent sellers have regrets about their sale,” the report’s author, Jaime Dunaway-Seale, wrote.

Clever’s researchers compiled data from public records on property taxes, transfer taxes and recording fees. They also obtained quotes for attorney fees, title insurance and other services from local providers.

For comparison, Zillow Real Estate said it’s typical to spend 8% to 10% of the purchase price on closing costs. According to its site, the median-priced home in the U.S. stands at $345,000 in June. That equates to about $28,854 and $34,500 in closing costs.

What are home-selling costs in NC?

In North Carolina, seller closing costs include the title and closing service fees, owner’s title insurance policy, real estate transfer tax, and recording fees on the closing date.

“The seller typically pays the costs of verifying and transferring ownership to the buyer, so most closing costs are unavoidable,” the report said.

On top of these closing costs, sellers need to pay Realtor fees. Average Realtor fees in the state are 5.52%, a separate Clever study found, which works out to be $18,341 for the median-home price ($332,265) in the state.

Half is the listing commission; the other is the buyer’s agent commission. That equation, however, could change soon, potentially saving sellers money going forward.

In August, sellers will no longer be required to pay the buyer’s agent commission as a result of a legal settlement against the National Association of Realtors.

While rates are unlikely to fall immediately, they could shrink to 3% to 4% over time, Stephen Brobeck, senior fellow at the Washington, D.C.-based Consumer Federation of America. That could save consumers an estimated $20 billion to $30 billion annually, he said.

The breakdown

Below is a breakdown of selling costs in North Carolina and the country. These estimates don’t consider upcoming changes after the landmark NAR settlement.

Today, homeowners in North Carolina generally spend these estimated amounts:

• Repairs, staging, and prep: $200 to $5,731

• Realtor fees: $13,103 to $23,518

• Closing costs: $2,452 to $11,151

• Moving expenses: $420 to $3,932

Total: $16,175 to $44,332.

Below is a breakdown of selling costs based on the 2022 median-priced home ($393,500) in the United States.

Homeowners generally spend the estimated amounts:

• Listing agent commission: $11,136

• Buyer’s agent commission: $10,467

• Repairs: $10,000

• Closing costs: $8,000

• Concessions to buyer: $7,2000

• Moving costs: $3,250

• Marketing: $2.300

• Staging: $2,263

Total: $54,616

What the experts say

Broker Tammie Harris said Clever’s breakdown is significantly higher than what she sees in the Triangle.

Closing costs typically range from 2% to 5% of the home’s purchase price, said Harris, owner of The Tammie Harris Real Estate Firm in North Raleigh.

“This can vary depending on the terms negotiated between the buyer and seller,” and can quickly reach a “significant amount,” she said.

AnnMarie Janni, founder of Apex-based Element Realty Group at Allen Tate, said it’s important to know closing costs before signing on the dotted line.

As part of her listing appointment with sellers,” she added, “we provide a ‘seller net’ sheet,” including sale price, taxes, attorney fees, loan payoff, commissions. “We make sure our clients know exactly what to expect at the closing table so there are no surprises.”

To read the full Clever study, go here. The report also includes a calculator here to estimate closing costs in North Carolina.