The Hidden Costs of Buying and Selling a Home — What Most People Overlook

By Young & Partners Real Estate | Smart Moves Series

LOS ANGELES, CA — When first-time buyers Alex and Tori finally got their offer accepted on a cozy Craftsman in Highland Park, they were over the moon. But that excitement quickly turned into confusion as their closing costs climbed thousands beyond what they expected.

“No one told us it would be this much,” Tori said. “We budgeted for the down payment. We didn’t expect everything else.”

They're not alone.

Whether you're buying your first home or preparing to sell, the hidden costs of real estate transactions can be surprisingly steep — and often overlooked until the final hour.

For Buyers: It’s More Than the Down Payment While the down payment gets the most attention, it’s just the beginning. Many buyers don’t realize they'll need an additional 2–5% of the purchase price in closing costs.

Here’s where that money often goes:

• Escrow & title fees

• Home inspection & appraisal

• Loan origination fees

• Prepaid property taxes & insurance

• HOA transfer fees (if applicable)

• Moving expenses & immediate repairs

“It’s not uncommon to spend $15,000–$30,000 in extras on a $700,000 home,” says Robert Young of Young & Partners Real Estate. “That’s why we walk our clients through a custom estimate before they even write an offer.”

For Sellers: The Price of Letting Go

Sellers, too, face their share of expenses — even when they’re the ones receiving the check.

Typical seller-side costs include:

• Agent commissions (usually 5–6%)

• Escrow, title, and transfer taxes

• Staging & photography

• Pre-sale repairs or cosmetic updates

• Potential buyer credits after inspections

• Capital gains tax (for certain properties)

How to Avoid Surprises

• Ask your agent for a Net Sheet (if selling) or a Buyer Cost Breakdown early on

• Budget for a cushion — don’t spend your full budget on just the home price

• Clarify who pays what in escrow, especially in multiple-offer situations

• Don’t skip the inspection — small issues now can cost thousands later

Final Word:

Homeownership is one of the most rewarding investments you can make — but it’s also one of the most complex. The more informed you are, the more empowered your decisions will be.

At Young & Partners Real Estate, we believe no one should be surprised at the closing table. We’re committed to walking you through every line item so you can buy or sell with clarity, not confusion.

Because when it comes to your home, every dollar — and every detail — counts.