Buying or selling a home involves plenty of moving parts, and the home appraisal process is one step that can raise questions for both buyers and sellers. What does an appraiser look at? How long does an appraisal take? And what happens after the appraiser finishes the inspection? 

Whether you’re buying or selling in Dumfries, VA, Tampa, FL, or another market, understanding the home appraisal process can help you know what to expect. An appraisal provides an independent opinion of a property’s market value and can play an important role in the mortgage process.

What is a home appraisal?

A home appraisal is an assessment of a property’s current market value completed by a licensed or certified real estate appraiser. When a buyer is financing a home with a mortgage, the mortgage lender typically orders the appraisal to help determine whether the property provides enough collateral for the loan.

An appraisal may also be required when refinancing a mortgage or applying for certain types of home equity financing.

Unlike a home inspection, which focuses on identifying potential problems and evaluating the home’s condition, an appraisal is primarily concerned with determining the property’s market value. To do this, the appraiser considers the home’s characteristics, condition, location, and recent sales of similar properties.

What happens during the home appraisal process? 

The home appraisal process generally involves an on-site visit followed by research and analysis. While the exact process can vary depending on the property and assignment, here’s what homeowners can generally expect. 

Visits your property

The appraisal typically begins with an inspection of the property. The appraiser observes and documents the home’s interior and exterior, takes measurements and photographs, and notes features that may affect its value.

The length of the visit can vary based on the home’s size, condition, and complexity. A larger or more unique property may require more time than a smaller, more straightforward home.

Evaluates your home

During the property visit, the appraiser looks at the home’s overall condition, size, layout, features, and permanent improvements. This can include the number of bedrooms and bathrooms, finished living space, garage, foundation, roof, heating and cooling systems, and other significant components.

The appraiser may also note visible signs of deferred maintenance, damage, or other conditions that could affect the property’s value or marketability.

Outside the home, the appraiser may evaluate the lot, driveway, garage, landscaping, exterior condition, and permanent features such as a deck, porch, or pool. The surrounding neighborhood and location are also considered as part of the valuation.

The goal isn’t to judge whether a home is decorated to a homeowner’s taste. Instead, the appraiser is gathering information that can help determine how the property compares with other homes in the market.

Researches comparable sales

After evaluating the property, the appraiser researches recent comparable sales, often called “comps.” These are recently sold homes that share relevant characteristics with the property being appraised.

Appraisers may consider similarities and differences in factors such as location, size, age, condition, layout, and features. Because no two homes are exactly alike, the appraiser analyzes those differences when determining how the comparable sales relate to the subject property.

Robert Surns, residential appraiser at Lakeshore Appraisal, explains, “Recent comparable sales provide evidence of what buyers are currently paying for similar homes. Appraisers analyze these sales to align the subject with current market activity and support a credible opinion of value.”

Recent sales are especially useful because they provide evidence of what buyers have actually been willing to pay in the current market.

Analyzes the market data

The appraiser then considers the information gathered during the property visit alongside the comparative market analysis.

The home’s location, condition, size, improvements, and features are considered together rather than in isolation. The appraiser uses this information to develop a supported opinion of the property’s current market value.

This is also why a home’s purchase price, a homeowner’s estimate of its value, or the amount spent on renovations doesn’t automatically determine its appraised value.

Completes the report

After completing the property evaluation and market analysis, the appraiser prepares the appraisal report. The report documents the property, comparable sales, relevant housing market information, and the appraiser’s final opinion of value.

The completed report is generally provided to the lender when the appraisal was ordered as part of a mortgage transaction.

Are home appraisals different for different types of loans? 

The general appraisal process is similar across many transactions, but some loan programs have additional property requirements.

FHA home appraisal 

FHA appraisals include additional requirements related to the property’s condition, health, safety, and structural soundness. An appraiser may identify issues that need to be addressed before the loan can move forward.

Potential concerns can include deteriorating paint, roof or foundation problems, water damage, exposed electrical components, or other conditions that may affect the property’s safety or structural integrity.

The specific requirements depend on the property and applicable FHA guidelines, so buyers and sellers should work with their lender if an issue is identified.

>>Read: What Are the Appraisal Requirements for Buying a Home with an FHA Loan?

VA home appraisal 

VA home loan purchases also have minimum property requirements designed to ensure the home is safe, sanitary, and structurally sound.

These requirements can include adequate heating, functional utilities, a sound roof and foundation, and other health and safety considerations.

If an issue is identified during the appraisal, the lender can explain what needs to happen before the loan can proceed.

What happens after the home appraisal is completed? 

Once the appraisal report is completed, the lender reviews the appraised value as part of the mortgage underwriting process.

If the appraised value meets or exceeds the purchase price, the transaction can generally continue toward closing as planned, assuming the buyer meets the lender’s other requirements.

If the appraisal comes in lower than the purchase price, however, the difference can create a financing challenge.

What information is included in a home appraisal report? 

A home appraisal report contains information that explains the property and supports the appraiser’s opinion of value. Depending on the type of appraisal, the report may include several key sections.

• Property and site information
• Neighborhood information
• Property improvements
• Comparable sales 
• Final opinion of value 

Understanding the home appraisal process

A home appraisal involves more than a quick walk-through of a property. The appraiser evaluates the home’s characteristics and condition, researches comparable sales, considers relevant market data, and uses that information to develop an opinion of the property’s current value.

For buyers, understanding the process can make this step of the mortgage process feel more straightforward. For sellers and homeowners, knowing what information may be useful and what the appraiser will evaluate can help the appointment go smoothly.

While you can’t control every factor that influences an appraisal, knowing what to expect can make one of the more technical parts of a real estate transaction easier to navigate.

Selling a home has always been a numbers game; the more qualified buyers you reach, the faster and stronger your offers tend to be. Virtual tours change that equation in a meaningful way.  A buyer who contacts you after walking a virtual tour isn’t casually clicking around. They’ve already studied the layout, walked the rooms, and decided they want a closer look. That’s a different kind of buyer than one who just liked the photos.

Whether you’re listing a townhouse in Miami, FL or a home in Denver, CO, adding a virtual tour to your listing is one of the most effective ways to attract serious buyers, generate stronger showings, and get to the closing table faster. Here’s how it works and why it matters.

1. They bring in more qualified buyers from the start

The biggest thing a virtual tour does for sellers isn’t visibility, it’s filtration. When buyers can walk a home digitally before scheduling a showing, the ones who make it to your front door have already decided the space could work for them. That shift in showing quality is something real estate media professionals notice consistently.

Ramon Corporan of Aerial Shots Media in Central Florida puts it plainly from both sides of the transaction. “Because buyers can rule a home in or out from their couch, the showings that do get booked come from people who already know the layout fits their life. That means less schedule disruption from strangers walking through for no reason, and more weight behind every appointment that lands on the calendar.”

Andrew Watts, co-owner of Real Tampa Bay, echoes this. “Virtual 3D tours give qualified buyers realistic access to the home on their own time, whether they’re local, out of town, or just busy. Being able to virtually stand in each room and walk through every living space helps buyers understand the flow and feel of the property before they ever schedule a showing. This means in-person visits are more likely to be with serious buyers who want a closer look.”

Gleb Osipov, Owner and 360-VR Specialist at 3DTour.ae, adds that the reach extends beyond local buyers as well. “Virtual tours attract more qualified leads, including international and out-of-town buyers, and also help reduce unnecessary viewings while keeping prospective buyers engaged for longer.”

2. They help buyers make decisions faster

One of the less obvious advantages of a virtual tour is how much further along in the decision process it moves buyers before a showing ever happens. 

Daniel Molina, co-founder and COO of Immersive 360, describes this progression. “When buyers do come through the door, they’re usually more informed, more intentional, and further along in the decision-making process. For the seller, that can mean stronger engagement, better-qualified showings, and a smoother path from initial interest to an offer.”

Shari Carter, owner of Reel Media Utah, points to the compounding effect of pairing a tour with other marketing assets. “When combined with professional photography and floor plans, virtual tours create a more complete picture of the property and can help buyers determine earlier whether a home is the right fit. It brings more informed and interested buyers to the showing.”

That earlier decision-making matters because time on market is one of the biggest factors affecting sale price. The longer a home sits, the more likely sellers are to face price reductions or skeptical buyers wondering why it hasn’t sold. A tour that moves buyers to a confident showing faster helps protect against that erosion.

3. They work alongside your photos, not instead of them

A common misconception is that a virtual tour replaces great listing photography. It doesn’t, and understanding the distinction helps sellers get the most out of both.

Corporan with Aerial Shots Media draws the line clearly. “Photos are what stop the scroll and get a listing noticed. The 3D tour is what a serious buyer studies afterward, room by room, before deciding your home is worth a weekend visit. They do different jobs, and a listing is stronger when both are done well.”

4. They build trust with buyers before they arrive

In a market where AI-enhanced photos and selective angles are increasingly common, a well-produced virtual tour signals something different: transparency.

Jill Kyle, architectural and portrait photographer at Jill Kyle Photography, makes this point distinctly. “Virtual tours are one of the few marketing tools left that are 100% authentic; there’s little to no editing possible, so buyers see the space exactly as it is. In a world of AI-edited and strategically chosen photos, that honesty stands out and builds real trust with buyers before they ever walk through the door.” 

That trust has a practical payoff. A buyer who walks into a showing already confident in what they saw online is far more likely to move quickly than one who arrives uncertain about whether the listing matched reality.

>> Read: Virtual House Tour Tips for Winning Over Buyers Through the Screen

5. They signal serious, intentional marketing

For sellers, a virtual tour also sends a message about how your home is being represented. Watts points to this directly saying, “It’s a clear signal that the seller’s agent is intentional about marketing the home at a high level and reaching the widest pool of motivated buyers.”

That perception matters in competitive markets where buyers are evaluating multiple listings simultaneously. A listing with a well-produced tour stands out not just because of the tool itself, but because of what it communicates about the care and effort behind the presentation.

Ready to list?

A virtual tour isn’t just a nice feature to add to your listing, it’s a strategic marketing decision that can shorten your time on market, reduce low-intent showings, and put your home in front of more serious buyers from day one. If you’re thinking about selling, find a local Redfin agent to talk through how to market your home to the widest possible pool of motivated buyers.

Key takeaways

• It’s a buyer’s market in a majority of U.S. housing markets, meaning homebuyers have the upper hand.
• Buyers and seller activity dropped in July, as economic worries and historic unaffordability keep many on the sidelines.
• The Sun Belt is home to the strongest buyer’s markets; the Midwest, Northeast, and Bay Area are home to the remaining seller’s markets.
• Housing markets vary widely, so take into account local market dynamics and talk with an agent to get the full picture.

The U.S. is in one of the strongest buyer’s markets on record. Following the pandemic-fueled seller’s market in 2021, sellers now outnumber buyers by over 51%—a near-record share. In numeric terms, there are an estimated 1.46 million sellers and 966,000 buyers in the market today. Generally, the greater the seller surplus, the stronger the buyer’s market.

However, at the core of the housing market is a historic affordability crisis, making it feel anything but buyer-friendly. Most consumers are holding off, so those who can afford to buy often have the upper hand.

Here’s what to know about buyer’s vs seller’s markets, how to tell which market you’re in, and where each side has the most leverage right now.

What is a buyer’s market vs seller’s market? 

Buyer’s market 

A buyer’s market happens when there are more homes for sale than buyers to purchase them. When this is the case, buyers typically drive negotiations and are more likely to receive concessions. 

Home prices tend to grow more slowly in buyer’s markets than seller’s markets. But if a buyer’s market sees prices cool substantially, the pendulum may swing back toward sellers as more homebuyers come off the bench, pushing prices up again.

The current market is an anomaly, though. There are few enough sellers and such a shortage of affordable inventory that prices are being pushed up more quickly even though buyers have significant leverage.

Seller’s market

A seller’s market occurs when demand exceeds supply. Buyers outnumber sellers, creating more competition and fueling bidding wars. Sellers typically lead negotiations in a seller’s market and see homes sell for above asking. House prices also tend to rise more quickly and sell faster.

The strongest buyer’s markets in 2026

Sellers outnumber buyers by the most in these ten metros, giving buyers more leverage. Redfin defined a “buyer’s market” as one where sellers outnumbered buyers by at least 10%. Buyers gained negotiating power in 34 of the 39 buyer’s markets nationwide.

The Sun Belt—cities stretching from the Southeast to the Southwest—is home to all of the nation’s strongest buyer’s markets. Miami sits firmly on top, while Austin is in fifth—ground zero for the cooldowns sweeping pandemic boomtowns since 2023. 

The Sun Belt skyrocketed in popularity during the pandemic, when scores of homebuyers moved in from more expensive parts of the country, driving up housing costs and pricing many locals out of the market. They are now among the fastest-cooling markets in the country.

Housing supply also plays a role. Florida and Texas in particular saw a surge in homebuilding during the pandemic to meet demand, but many of these homes are now sitting unsold as buyers back off. Florida’s housing inventory reached its highest level on record in 2025, with demand dropping due to rising prices, climate risks, and surging insurance costs.

The strongest seller’s markets in 2026

In a handful of metros, buyers still outnumber sellers, giving sellers the edge. Redfin defined a “seller’s market” as one where the buyers outnumbered sellers by at least 10%, and only six metros made the cut.

The Midwest and Northeast are home to nearly all of the remaining seller’s markets. Homebuilding and population growth has historically lagged in these regions; with more people looking to move to the region for homes they can afford, supply is falling far short of what’s needed and pushing prices up. San Francisco has also seen a surge in demand largely due to an influx of AI wealth. 

What buyers should do right now

• If you’re buying in a buyer’s market: This is the ideal time for buyers to make a move, if you can afford to. Home prices may decline, listings stay on the market longer, and sellers are more likely to negotiate. You may see price reductions, seller concessions, or repairs included to close the deal. With less competition, buyers have more leverage to secure a home at a better price.
• If you’re buying in a seller’s market: Sellers hold the upper hand, and competition among buyers can be fierce. Homes often sell quickly and attract multiple offers, which can drive prices well above asking. If you’re buying in a seller’s market, be prepared to act fast and make strong offers; trying to negotiate too aggressively could cost you the home.

>> Read: Is Now a Good Time to Buy a House?

What sellers should do right now

• If you’re selling in a buyer’s market: Selling becomes more challenging when inventory is high and demand is low. Homes tend to sit on the market longer, and homeowners are more likely to offer concessions. Today, the typical home takes nearly 50 days to sell, and almost half of sellers are offering concessions.
• If you’re selling in a seller’s market: This is a great time to sell. Homes typically move quickly, and competition among buyers can lead to multiple offers, bidding wars, or offers above asking price. With high demand and limited inventory, sellers have the upper hand and are more likely to get favorable terms, including waived contingencies and minimal concessions.

>> Read: Should I Sell My House Now? 

How to tell if you’re in a buyer’s or seller’s market

Even if the national housing market favors buyers or sellers, individual cities and regions usually vary widely. Sometimes, even adjacent neighborhoods will have completely different trends. That’s why it’s important to do your research to understand which way your market leans. 

Here are a few ways to stay ahead of the competition.

Check the Redfin Data Center

Redfin publishes its monthly buyer vs. seller dynamics research to the newly updated Redfin Data Center for public viewing. On the dashboard, you can see whether the national housing market—and any of the 49 largest metros—leans toward buyers or sellers. This is a good way to get a baseline picture of the housing market, but it may not reflect your neighborhood or include your city. That’s where additional research and insight comes in. 

Talk with a local agent

Local real estate agents know their market best. They have up-to-date knowledge on how long homes are sitting on the market, whether sellers are cutting prices, and how competitive offers are. An experienced agent can tell you if buyers or sellers have the upper hand and help you make informed decisions in your area.

Research housing inventory

A common way to gauge which way a market leans is to look at “months of supply”—the number of months it would take for available inventory to sell at the current rate. Supply below 4 months tends to favor sellers, while supply above 5-6 months tends to favor buyers. Redfin publishes this data on the Redfin Data Center for every metropolitan area in the country. 

Track sale price trends

Price growth often accelerates during a seller’s market and cools during a buyer’s market, sometimes even causing home prices to fall. If prices are growing quickly and show no signs of slowing down, you could be in a seller’s market. 

Look at mortgage rates

Mortgage rates play a huge role in the housing market. Typically, the higher the rates, the less buyers shop for homes, making sellers more desperate for offers. This is the case today, which is helping put buyers in the driver’s seat.

Looking forward

Economic uncertainty continues to throw a wrench into the housing market, with inflation, the Iran War, tariffs, and immigration policy all playing a role. Homebuilding is also more expensive than ever, putting pressure on the nation’s aging housing stock. 

But there are positives on the horizon. In part because housing costs are so high and so few homes are selling, price growth has slowed—and in some places, they are falling. There will be bumps in the road, but Redfin economists expect price growth to slow further and affordability to improve in the coming years.

The prolonged seller’s market is over, so serious buyers with the budget may want to act now while competition remains lower.

Methodology

All data covers July 2026 and is seasonally adjusted (except for median sale price), dating back to 2013. Please see this article for the full methodology, and this report for Redfin’s most recent analysis, including a full metro-level breakdown.

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Selling your home isn’t just about posting a ‘For Sale’ sign outside and waiting for potential buyers to call. It’s a strategic game where knowledge and preparation are critical. As we enter 2024, techniques and market trends have evolved dramatically, becoming more dynamic than ever. As first-time home sellers, it’s essential to understand every component of home selling.

From setting your price correctly to using online tools and negotiating effectively, first-time home sellers today need to be prepared with knowledge and a strong agent. Selling a home for the first time can be an overwhelming experience, but with proper preparation, it can also be rewarding.

These steps will increase your chances of a successful sale and help you maximize your proceeds from the transaction.

Having a Realtor with a comprehensive real estate marketing plan by your side will increase the odds of a profitable sale.

Let’s dig into everything thing to become a successful first-time home seller!

Research and Choose a Real Estate Agency

Working with a real estate agent when selling your home can have significant advantages. They have in-depth knowledge about the local market, pricing strategies, and effective marketing tactics specific to your area.

Moreover, they provide objective assistance throughout the process, ensuring that every aspect of the transaction runs smoothly. So, how do you research and choose the best agency to work with?

To begin with, ask for referrals from friends or family members who recently sold their home and had a positive experience with a local real estate company.

You can also conduct online research by checking out reviews for real estate brokerages in your area. Platforms like FastExpert provide verified client reviews for thousands of agents so that you can find your best fit.

Once you have a shortlist of potential Realtors, schedule meetings with each potential agency to discuss their approach and experience with selling homes similar to yours.

Remember that an excellent company is essential, but your chosen agent is vital.

Have a Careful Interview

It’s essential for first-time home sellers to prepare for an initial meeting with a real estate agent. Come prepared with a list of interview questions for the agent, and be sure to walk away with a thorough understanding of the agent’s approach. There will be a guessing game for choosing the best agent without the right interview questions.

During these meetings, ask about their fees and commission rates. Remember that lower commissions may result in less marketing exposure for your property, whereas higher commission rates may indicate more extensive marketing efforts.

Find out the agent’s time in the business. While everyone starts somewhere, do you want a rookie when you’re in the same boat? No, you don’t. Look for an agent with at least a few years under their belt.

One of the most vital things to ask about is their track record. Some crucial questions are: How many homes did you sell last year? How many homes had price reductions? What was the list price-to-sale price ratio and average days on the market?

These questions speak to the agent’s performance.

Key Takeaway: The agent you choose will have lasting impacts on the viability of a stress-free and profitable sale. Don’t underestimate making the best choice.

Preparing Your Home for a Successful Sale

Generally speaking, most buyers want a move-in ready home – clean lines, neutral colors, no clutter, and visually appealing aesthetics. A prepared home can appeal to future buyers as they can envision living there comfortably.

Getting your home ready for the market should not be overlooked.

Think about it like going on a first date – everyone wants to put their best foot forward by showcasing their best qualities!

When preparing your home for sale, complete the following:

• Clean: This includes decluttering all unnecessary items or personal effects.
• Repair: Broken door handles or a running toilet might seem insignificant, but addressing them before listing allows buyers to see the overall quality of your house.
• Impact: First impressions count. Buyers will first see your home’s exterior. Make sure to clean up the yard, make necessary repairs, and add a fresh coat of paint if it’s been a while.
• Stage: Consider getting furniture items to enhance the look and feel of your home. Also, consider staging companies that can make your home appear showroom-ready. The effort put into staging will be worth it.

One great way to ensure these points above are accounted for is by inviting friends and family for an objective critique of your house. This ‘dress rehearsal’ helps you view the property objectively and can make a difference in how others view the property.

In essence, selling a home demands attention to detail and patience. Sometimes first-time home sellers can overlook essential elements. Getting it prepared with an agent’s help to find prospective buyers, negotiate offer terms, and ultimately close requires this thorough approach.

Key Takeaway: Above all else, listen to an agent you’re comfortable with. They know best. Lean on their expertise. Be bold and ask many questions.

Enhancing Curb Appeal

When selling a home, first impressions matter. Potential buyers are likely to decide whether or not they like your house within a few seconds of seeing it from the outside.

Therefore, enhancing curb appeal can increase your chances of selling your house quickly and at an ideal price.

Some straightforward improvements include mowing the lawn, trimming hedges, washing walkways, painting the front door, and adding potted plants for color.

Imagine you’re driving around a neighborhood and see two homes for sale. One with well-maintained landscaped gardens and attractive decor. And another that appears neglected, with a cluttered yard and peeling paint.

Which home would interest you more? Ensuring your property is appealing from the outside is crucial in attracting potential buyers.

Staging Strategies

Staging involves preparing your home so potential buyers can envision themselves living in it. This may include rearranging furniture, decluttering rooms, and repairing broken items or fixtures, amongst other things.

A well-staged home highlights its strengths and helps buyers overlook shortcomings by creating an emotional connection with them. When staging, decluttering, and depersonalizing are two central themes to consider.

For instance, remove personal items such as family photographs or religious paraphernalia that may make potential buyers uncomfortable or disinterested.

Rather than mindlessly moving items out of sight, viewing home staging as an opportunity to effectively showcase each room’s best features is essential.

Virtual staging might be worth trying in some circumstances. For example, when a house is vacant. Get your agent’s opinion on whether it will help your sale.

Ultimately, staging is about striking the right balance between showcasing how comfortable and livable each room is while keeping it neutral enough so prospective buyers can easily picture themselves living there.

Getting this delicate balance down can be time-consuming but will undoubtedly pay dividends in presenting your home at its best.

Importance of Professional Photography

The first impression your home makes on potential buyers is often through photographs. Most buyers start their search in front of a computer or phone.

If you want to attract the right buyers and sell your home quickly, you need to invest in professional photography.

A skilled photographer can make rooms look bigger, brighter, and more appealing. They understand the perfect angles for capturing a room’s best qualities. They have an eye for details and can identify areas that buyers would find most attractive.

Photography done right can leave a lasting impression.

Attracting interest quickly means getting more eyes onto your listing, which often translates to better offers and a quicker sale.

For instance, imagine searching through property listings online for your dream home and coming across a blurry photo with dim lighting. You’d likely breeze past it without any second thoughts for fear of wasting time.

Many first-time home sellers neglect to factor in this critical element and go for amateur photographs with their smartphones or cameras instead. You should never settle for an agent that doesn’t invest in their business.

Key Takeaway: Going with an agent who cuts corners to save costs will become a significant mistake. You’ll be shooting yourself in the foot!

Pricing and Negotiating Your Home Sale

The first step in pricing your home begins with being realistic. You’ll need to look at real estate comps with an open mind. Think like a buyer and not an emotionally attached seller. As a first-time seller, treat this as a business transaction.

Look over the agent’s market analysis carefully.

It’s essential not just to value your home based on what you owe on the mortgage or what you think is a reasonable asking price. Instead, you must understand how much similar homes in your area are selling for.

It’s rather like playing chess. Each move must be calculated beforehand so you can maintain command of the game. Understanding pricing trends helps determine when you’re comfortable negotiating while achieving a successful sale.

Don’t be afraid to ask for the price you believe your home is worth. But remember that there’s always a bit of give and take involved. Sellers may need to compromise on some aspects and understand what they will concede versus where they won’t budge.

Key Takeaway: An unrealistic asking price will stop a sale dead in its tracks.

Managing Home Showings and Adjusting Strategy as Needed

Home selling can be stressful, and managing home showings is no different. It’s essential to keep your emotions in check. Detach yourself from your home and allow potential buyers to view your property.

The goal is to make the showing experience positive for all parties involved. Ensuring your property looks its best on the day of the showings is crucial. Declutter and organize to showcase its best features.

Remember, less is more; removing clutter helps make spaces feel larger. Think neutral décor that appeals to more buyers.

Accept as many showings as possible. Sometimes, you’ll get a showing request at a time that isn’t convenient. Let it happen! A missed showing is a lost opportunity you may never get back.

Feedback is Essential

While preparing your house for sale is essential, it’s also important to remember that every viewing has potential feedback that could provide helpful insights into buyer preferences.

A lack of interest may mean that adjustments must be made in either pricing or marketing strategies. Try keeping track of visitor feedback and adjust accordingly.

An excellent real estate agent will have a system for keeping you informed.

You Can Skip Open Houses

While open houses may seem like a good idea, it’s not always the best approach since they don’t necessarily bring more qualified buyers through the door. They often result in tire-kickers or curious neighbors attending without serious interest in purchasing.

Don’t worry; genuine buyers always schedule showings with local Realtors.

Conclusion

There can be many minefields when selling for the first time. It will be a learning experience that will improve when you do it again.

Working with a professional team will prepare you to become a happy home seller.

Closing costs aren’t just a buyer’s concern. Sellers pay their own set of fees when a home sale closes, including title fees, transfer taxes, escrow charges, and other costs that are deducted directly from their proceeds. 

But there’s an important distinction sellers should understand before listing their home: closing costs and total cost to sell are not the same thing.

Seller closing costs run around 1–3% of the sale price. Once agent compensation, repairs, moving expenses, and other selling costs are factored in, the total cost to sell is often much higher. 

The current housing market can also affect how much a seller ultimately pays. While homebuying demand has improved this year, many markets still have more sellers than buyers, giving buyers added negotiating power. As a result, sellers may be more likely to offer closing cost credits, repair concessions, or mortgage-rate buydowns, all of which can reduce their net proceeds from the sale.

This guide breaks down what closing costs for sellers include, what’s negotiable, and how to estimate what you may actually walk away with after selling your home.

Seller costs at a glance 

What are closing costs for sellers?

Closing costs are the fees and expenses required to finalize the sale of a home. These are deducted directly from your proceeds at closing, so you won’t need to pay them out of pocket on the day of the sale.

Seller closing costs can include:

• Transfer taxes and local fees
• Escrow, title, and recording fees
• Owner’s title insurance
• Prorated property taxes and utilities
• Certain HOA-related fees, such as transfer fees and prorated dues

But closing costs are only part of what it costs to sell. The total cost to sell is a broader number that includes everything you spend before, during, and after the sale, including: 

• Real estate agent compensation
• Seller concessions negotiated with the buyer
• Repairs and renovations
• Home staging
• Photography and listing prep
• Moving expenses
• Carrying costs while the home is listed
• Mortgage payoff

Understanding the difference matters because many sellers focus only on closing costs and underestimate how much they’ll actually spend throughout the selling process.

How much are closing costs for sellers?

Seller closing costs typically range from 1% to 3% of a home’s sale price before agent compensation, though the exact amount depends on location, transfer taxes, and the terms negotiated during the sale.

Some sellers may also have additional expenses beyond traditional closing costs, including agent compensation, repairs, moving costs, and seller concessions. That’s why it’s important to understand both your closing costs and your broader selling expenses when estimating your net proceeds.

Breakdown of closing costs for sellers

Seller closing costs are the fees directly associated with transferring ownership of the home and finalizing the transaction. These costs are typically deducted from your proceeds at closing.

1. Transfer taxes and local fees

In some states, sellers may be required to pay transfer taxes, which are calculated as a percentage of the sale price or the property’s value. These taxes can vary widely depending on location. For instance, some areas may charge 0.5% to 2% of the sale price as a transfer tax, while other regions might have a flat fee or no tax at all.

For example, if you’re selling a home in Providence, RI, you’ll likely owe transfer tax. In contrast, Texas doesn’t impose a state transfer tax, so selling a home in Austin, TX may come with fewer tax-related costs – though local fees may still apply.

In addition to transfer taxes, there may be other local fees, such as certification or inspection fees, required by local governments before the property can be officially sold. These costs range from $100 to $500, depending on the area. Because transfer taxes and local fees vary significantly by location, sellers should check with their real estate agent, title company, or local government office to understand what costs may apply in their market.

2. Escrow, title, and recording fees

Escrow, title, and recording fees help facilitate the sale and transfer ownership of the property from the seller to the buyer.

• Escrow fees: Charged by the escrow company handling the transaction. Who pays varies by market and local custom.
• Title search fees: Cover the research needed to confirm clear ownership and check for any liens or claims against the property.
• Recording fees: Paid to the local government to officially record the property’s transfer to the new owner.

These administrative closing fees generally range from $200 to $1,900, but the exact amount will depend on the local jurisdiction and the complexity of the transaction.

3. Owner’s title insurance

Owner’s title insurance protects the buyer against future ownership claims and title defects, including unknown liens. The all-in cost averages about 0.67% of the purchase price, though total title-related fees can vary by location and provider. 

In many states, sellers cover this cost as part of the closing process, but who pays can vary by region, local custom, and negotiation. 

4. Prorated property taxes and utilities

At the time of closing, sellers are responsible for paying property taxes up until the day of the sale. If the home is sold mid-year, property taxes will be prorated, meaning the seller will only pay for the portion of the year that they owned the home. 

Utility bills, such as water, electricity and gas, may also be prorated based on the closing date. These expenses can range from a few hundred to several thousand dollars, depending on local tax rates and the sale date.

5. HOA fees 

If your home is part of a homeowners association (HOA), you may encounter additional fees at closing. These can include transfer fees, resale package fees, estoppel fees, and prorated HOA dues owed through the closing date.

In some cases, sellers may also be responsible for unpaid HOA dues or special assessments approved before the sale. The exact fees and who pays them can vary based on the HOA’s governing documents, state law, local custom, and the terms negotiated in the purchase agreement.

Because HOA-related costs vary widely from one community to another, sellers should review their HOA documents and ask their real estate agent or closing professional what fees may apply before listing their home.

Other major costs that affect your net proceeds

Some selling expenses aren’t technically closing costs, but they can still significantly reduce how much money you walk away with after the sale.

1. Real estate agent commission

While real estate agent compensation isn’t typically considered a closing cost, it’s often one of the largest expenses associated with selling a home and can affect how much you ultimately walk away with after the sale.

There’s no standard commission rate, and compensation is fully negotiable. Sellers negotiate compensation directly with their listing agent.

Following the 2024 NAR settlement, buyers are generally required to sign written agreements with their agents before touring homes. Buyers may ask the seller to help cover their agent’s compensation as part of their offer, but they may not. As a result, compensation requests can vary from transaction to transaction, and whether a seller contributes toward a buyer’s agent’s compensation ultimately comes down to negotiation.

2. Mortgage payoff balance

While a mortgage payoff isn’t technically a closing cost, it is deducted from the seller’s proceeds at closing and can significantly impact how much money they walk away with from the sale.

If the home has an outstanding mortgage, the remaining balance must be paid at closing. The lender provides a mortgage payoff statement, including:

• The remaining principal balance
• Accrued interest
• Possible prepayment penalties (less common today)

Sellers should request a payoff statement early to avoid last-minute surprises.

3. Seller concessions 

While seller concessions aren’t typically considered a traditional closing cost, they can increase the amount a seller pays at closing and reduce their net proceeds.

A concession is anything a seller agrees to give or cover to help move a deal forward. In real estate, that means credits, repairs, or cost coverage that gets negotiated as part of the offer and settled at closing — reducing what the buyer has to pay upfront.

Seller concessions can include:

• A seller-paid mortgage rate buydown
• A credit toward the buyer’s closing costs
• Prepaid property taxes or insurance
• Repair credits in lieu of making fixes before closing

Concessions aren’t required, but they can be a useful negotiating tool. Sellers may offer them to attract buyers, address issues uncovered during an inspection, or help keep a transaction on track. In today’s market, where many areas still have more sellers than buyers, concessions have become more common in some transactions.

The amount of seller concessions varies based on market conditions, buyer financing, and negotiations between the buyer and seller. Some loan programs may place limits on the amount a seller can contribute toward a buyer’s costs.

Every dollar in concessions reduces your net proceeds, so it’s important to weigh the cost of the concession against the likelihood of keeping the transaction together.

How to reduce seller closing costs

While some costs are unavoidable, there are strategies you can use to lower your closing costs as a seller:

• Review agent compensation carefully: While agent compensation isn’t typically considered a closing cost, it can be one of the largest expenses associated with selling a home. Compensation is negotiable, so sellers should discuss fees and services with their agent before signing an agreement.
• Shop around for title and escrow services: These fees vary by company, so shopping around can save hundreds of dollars.
• Limit seller concessions when possible: Seller concessions can increase the amount you pay at closing. Depending on market conditions and buyer demand, you may have more or less flexibility when negotiating credits, repairs, or mortgage-rate buydowns. 
• Negotiate closing costs with the buyer: You can work with the buyer to negotiate who pays for specific costs, such as HOA fees or title insurance. If the buyer is rolling in closing costs to their mortgage, they might be willing to cover a bit more to seal the deal.
• Request a mortgage payoff statement early: If you still have a mortgage, ask your lender for a payoff estimate before listing your home. Understanding how much you owe can help you better estimate your net proceeds and avoid surprises at closing. 

Frequently asked questions about seller closing costs 

What’s not included in closing costs? 

Real estate agent compensation, repairs, staging, photography, moving expenses, and mortgage payoff are generally not considered closing costs. These expenses can reduce how much money a seller ultimately walks away with, but they’re separate from closing costs such as transfer taxes, title fees, escrow fees, and prorated taxes.

What factors affect how much a seller pays in closing costs? 

Location has the biggest impact — transfer taxes range from 0% in states like Texas to over 2% in states like Pennsylvania. Your sale price, loan type, what gets negotiated in the offer, and whether you offer any seller concessions all play a role as well. 

How do I calculate my net proceeds? 

Start with this formula: 

Sale price − total cost to sell − mortgage payoff = net proceeds. 

Selling expenses may include closing costs, agent compensation, seller concessions, repairs, moving costs, and other costs associated with the transaction.

On a $400,000 sale with $30,000 in selling costs and a $120,000 mortgage balance, net proceeds would be approximately $250,000, before any applicable taxes. Use Redfin’s home sale proceeds calculator to run your own numbers.

Ready to see what your home is worth? Find a Redfin agent near you. 

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Mike Jeppson, an experienced real estate broker at Home Smart and FastExpert partner, gives the honest truth about mistakes home sellers make. Read on to get your home sold with less hassle!

Are you wondering, “Why isn’t my home selling?” Well, you may be accidentally sabotaging the sale of your home. Some homes sit on the market for weeks or months because of mistakes home sellers make.

Home selling requires both physical and mental preparation. Selling a home is no simple feat. It is not a sprint. It can be more like a marathon with steep hills and bad weather. However, it does not need to be this difficult. Just like training for a marathon prepares you for the race, with the right preparation and attitude, your home sale race can be successful and rewarding.

Let me help you prepare for your home sale. In this article, I’ll lay out common mistakes home sellers make along with recommendations for a smooth sale.

1. Missing Motivation

Long ago, I heard the saying, “No Mo, No Go.”

This refers to home sellers having sufficient motivation to go through the daunting process of selling their home. If the motivation is not strong enough, the deal is less likely to work out, and the process may become more stressful than necessary for all parties involved.

If you are considering selling your home, please consider your mindset and how motivated you are to go through the process. Remember, it’s a marathon, and you need the motivation to finish.  

2. Underestimating the Inconvenience

The biggest mistake home sellers make is underestimating how inconvenient the process of selling a home will be.

This is especially true if you live in the home during the sale process. When there are people living in the home who need to eat, sleep, and do normal things, it is challenging to have the home perfectly ready at all times.

However, make the sacrifice and have the home ready to show. Remind yourself that this is a temporary inconvenience, and keep your eyes on your home-selling goal.

As a home-seller, you get one chance to make a first impression. Expectations are high, and it is up to the seller to perform. Most buyers do not want to have to visualize what the home will look like when it is cleaned. It’s essential to make yourself uncomfortable so that future buyers can envision themselves being comfortable in your cozy abode.

3. Limiting Showings

Another mistake sellers make is not being flexible for showings. I have heard sellers say over and over “If they are serious buyers, they will work with our schedule and come see the house when it is convenient for us”.

Contrary to the belief of many sellers, buyers may not circle back if a showing request cannot be accommodated. You might miss out on the perfect buyer by not being flexible. Even if a potential buyer requests a short notice showing, it is best to open your doors to them. If you only show your home at times that are convenient for you, then the home sale process will be prolonged and potentially frustrating.

Control what you can control by keeping the home clean and show-ready. Be flexible and keep your mind locked in on the end goal. 

4. Ignoring Advice

Your real estate agent has your best interest in mind. Moreover, it’s also in the agent’s best interest to sell your home. Therefore, trust your agent and follow their advice.

Sellers who do not trust or want to listen to their agent or broker are making a mistake. You hired a professional to assist in selling your home. In many cases, the agent has been involved in the listing and sale of hundreds or thousands of homes.

A challenging process will be more challenging if you do not follow their guidance. In addition, it will likely take additional time to sell your home and potentially cause money to be left on the table.

Make sure you feel 100% comfortable with your agent before signing a contract with them. Set your standards high, interview multiple agents, and then let the agent you hire guide you. They are professionals and have a track record to prove it. 

If along the way, you truly believe the agent is not a good fit, discuss the issues with the agent, and determine if you need to cancel the agent’s contract.

5. Responding Emotionally

It is difficult to relinquish the memories held in a home. You see all the thought and care that you put into the home and you also remember all the cherished times with friends and family. Understandably, it is challenging to move away from a place that holds part of your heart.

Yet, it’s essential to understand that buyers do not have the same emotional attachment that you do as the seller (not yet anyway).

A major mistake sellers often make is responding emotionally and/or unreasonably to buyers’ requests for repairs or concessions. I see many sales fall apart based on this factor. The requests from the buyer are not personal, and they are not trying to disrespect your home. It makes sense that the potential buyer wants things fixed if they are broken.

It’s critical to keep the end goal in mind. At the end of the day, many of the items a buyer might ask for should be taken care of whether they move forward with the sale or not. Selling a home is a highly emotional process. Trust in the process and the professionals who are in your corner. 

Work with an Agent You Trust

Sellers who maintain realistic expectations and have sufficient motivation for selling should expect to (for the most part), have a smooth experience. There are many professional and highly competent real estate agents who can assist and get the job done in an ethical and moral way.

Agents and brokers are here to help sellers accomplish their goal of selling their homes with the best possible terms and with the least amount of inconvenience. Most of the agents truly care about their clients and will do whatever it takes to ensure the process of selling a home goes as smoothly as possible. 

Take your time choosing an agent that is your best fit, trust the process, and keep your end goal in mind.