The average U.S. homebuyer spends $31,975 on upfront homebuying expenses. If you add in agent commissions, the bill jumps to $44,919, according to a survey by Clever Real Estate.
The brokerage surveyed 1,000 people who have bought a home since 2022 and found that 48% of those responding were surprised by the expenses connected to the process. They didn’t expect to pay so much for closing costs, repairs, moving costs and other miscellaneous charges.
About 72% of buyers regretted their homebuying experience and wished they’d leveraged their growing power in the market to push incidental prices down. If these buyers were given a do-over, 68% would have made different decisions, and believe they could have saved an average of $24,000 on their home purchase.
It is easy to see why homebuyers may have regrets. The survey found when combining a 15% downpayment ($75,255) on the average-priced home and upfront expenses, the initial cost of buying a home comes to a blistering $107,230. If you add the agent fees, which Clever Real Estate found can average nearly $13,000 if the buyer pays the average commission rate of 2.58% out of pocket, the total initial cost comes to a whopping $120,230.
The extra upfront charges include repairs and renovations, which average $13,498; furniture, fixtures and appliances ($6,446); closing costs ($4,754); concessions to seller ($3,943); moving costs ($2,670), private mortgage insurance ($387 annually) and home inspections ($277).
The survey found that despite the legal settlement in August with the National Association of Realtors which made buyers, not sellers, responsible for determining how their agent is paid, commission costs have hardly changed in recent months. Many sellers continue to pay agent commissions and about 66% of buyers who used agents in 2024 said sellers paid for some or all of their agents’ commissions.
Among the repairs and improvements, 36% of average homebuyers painted or stained, 31% repaired or replaced appliances, 27% put in new landscaping and fencing and 23% improved or repaired the plumbing.
Not surprisingly, young first-time buyers were the most unprepared for the higher prices. About 70% of Gen Z homebuyers were surprised by the fees, with 49% saying they went over budget and 55% saying if affected their ability to maintain an emergency fund.
