Thinking of selling your house in Virginia soon? You might earn a nice sum, considering that median home prices in the state have increased every year since at least 2021, according to May data from Redfin. But while it’s easy to focus on your potential profits, it’s also important to consider the costs of selling a home — including agent commissions, closing costs, moving expenses and more.
So, exactly how much does it cost to sell a house in Virginia? Let’s review the numbers.
Sellers’ closing costs
Even though buyers might cover most closing costs in a real estate transaction, sellers must also pay a share of these expenses. In Virginia, common closing costs for sellers can include:
- Property taxes and HOA fees: It’s your responsibility as the seller to ensure your property taxes — and HOA fees, if you are part of a homeowners association — are fully paid until your home officially changes hands.
- Transfer taxes: Virginia’s transfer taxes are complex, and mostly the buyer’s responsibility. However, sellers usually pay what’s called a grantor tax at a rate of $0.50 per $500 of the purchase price. On a $500,000 home sale, that comes out to $500. In the Washington, D.C. suburbs of Northern Virginia, there’s an additional tax of $0.10 per $100 of the home’s price.
- Title costs: Buyers and sellers in Virginia can negotiate who pays for the title search and title insurance policy, both of which protect in case of outstanding liens or other ownership claims on the property.
- Escrow fees: If an escrow account is used to hold funds during the transaction, you might be charged a fee for maintaining it.
- Legal fees: Virginia does not require home sellers to hire a real estate lawyer. However, with so much money at stake, you might decide to hire one anyway to be sure your interests are protected.
- Seller concessions: Often, sellers will agree to pay for certain repairs or closing costs to speed up the sale. If you’ve made any of these concessions, the cost will come out of your proceeds at closing time.
Real estate agent commissions
If you use a real estate agent when selling your home, you’ll also need to pay that agent’s commission. This fee usually ranges from 2.5 to 3 percent of a home’s sale price.
As an example, let’s say you sell your home for $465,600 — the median sale price for a home in Virginia as of May 2024, per Redfin. A 2.5 percent commission on that amount comes to $11,640.
However, depending on your specific location in Virginia, home prices can be much lower — or much higher. For example, in Arlington, just across the Potomac from Washington, D.C., the median sale price in May was $722,500 — 2.5 percent of that would be just over $18,000. But in Hampton, where the median was a much more affordable $280,000, it would come to just $7,000.
Take note: For a long time now, it’s been customary for home sellers to pay the commission not just for their own agent but for their buyer’s as well. However, beginning this summer, buyers may be required to pay their own agents directly, due a the recent lawsuit settlement by the National Association of Realtors.
Preparing your home for sale and moving
If you want to earn top dollar on your home sale, you might want to spend some time — and money — sprucing up the property before it hits the market. This includes fixing visible issues (for example, scuffed floors or leaky faucets) that potential buyers would notice while checking out your home.
You can also invest in home staging to enhance your property’s appeal even more. Staging involves hiring a professional to arrange furniture and decor in a way that makes the home as attractive as possible to prospective buyers. Staging can cost between $792 and $2,840, depending on how much work the home needs, according to HomeAdvisor.
It’s important to consider how your property looks from the outside, too. If it’s lacking curb appeal, you can make minor improvements, like planting flowers or repainting your front door, to make sure buyers get a good first impression.
Remember to factor in relocation costs as well. Professional movers can cost a couple thousand dollars, depending on the size of the job, and a long-distance or out-of-state move can cost much, much more.
How much do I get from selling my house?
The net proceeds from your sale equate to the amount you’ll receive after paying off the remainder of your mortgage balance (if you have one) and settling all closing costs, commissions and other expenses. If you earn a very sizable profit — $250,000 or more — you may be responsible for paying capital gains tax on your sale proceeds.
Reducing costs
If you’re trying to cut costs so you can maximize those profits, try these tips:
- Negotiate agent commissions: Before you hire a real estate agent, find out whether they’re open to negotiating their commission rate. Even a small rate reduction could mean big savings, especially if you’re selling a higher-priced home.
- Sell as-is: If you don’t want to spend money on repairs or upgrades, you could list your home as-is. This tells buyers that the house comes in its current condition — if they want anything fixed, they’ll have to do it themselves. (Be prepared to earn less money on this type of sale, though.)
- Compare prices: Get bids from multiple staging companies, landscapers and other service providers to find the best price.
- Ask for help: Your friends and family might be willing to help with moving or home improvement projects, so you don’t have to pay professional rates.
Alternatives
Most people work with a real estate agent to sell their home, but that’s not the only way to do it. Other options include:
- Cash homebuyers or iBuyers: If you need cash quickly or need to move ASAP, consider selling directly to an iBuyer like Opendoor, which buys homes in the Richmond and D.C. areas, or to one of Virginia’s many cash-homebuying companies. These businesses specialize in fast, all-cash deals that close in just weeks. However, there’s a trade-off: You’ll usually receive less than full market value for your home.
- For sale by owner (FSBO): In a FSBO sale, there’s no listing agent, which spares you from paying their commission. However, you may still have to cover the buyer’s agent’s commission — and you’ll need to take on all of the work that a listing agent typically performs. It’s a serious commitment, and if you make a mistake, there could be legal or financial implications.
- Home equity: If you need the cash but would rather not sell, you might be able to leverage your equity with a home equity loan or HELOC instead.
- Renting: Conversely, if you don’t need the funds from a sale right away, finding tenants to rent your house lets you retain ownership — while also bringing in extra income.
Next steps
If you understand the cost to sell a house in Virginia and you’re ready to list, your next step is to find a knowledgeable local real estate agent to guide you through the selling process. Agents are licensed pros who know the ins and outs of their local housing markets — it’s their job to use that insight to help you make the best deal for your home.
FAQs
-
In Virginia, closing costs usually amount to about 1.41 percent of a home’s value, according to a 2024 study by Assurance. On a median-priced $465,600 home in the state, that would come out to $6,565. Keep in mind that this full amount is not shouldered by the seller, though — both sellers and buyers pay a portion of overall closing costs.
-
Yes, you can sell your home without a Realtor in any state (including Virginia), in what’s known as a “for sale by owner” transaction. Going this route will save you money on a listing agent’s commission, but it leaves you responsible for all of their work, including setting an asking price, showing the home to buyers, negotiating contract terms and navigating the closing process. Selling directly to an iBuyer or another kind of cash-homebuying company would also eliminate the need for a Realtor.
Read the full article here
