SEATTLE and SAN FRANCISCO, May 18,
2017 /PRNewswire/ -- Nationally, U.S.
homeowners spend $15,190 on average
in extra or hidden costs associated with selling their home,
according to a new analysis from Zillow® and Thumbtacki.
Since most (63 percent) of today's sellers have never sold a home
before, some of these costs could come as a
surpriseii.
To help with budgeting, Zillow and Thumbtack calculated several
common, but often overlooked, seller expenses including sales taxes
and agent commissions, as well as five optional home prep projects.
More than eight out of 10 home sellers make improvements before
listingiii. While some sellers prefer to complete these
projects themselves, those who outsource can expect to spend more
than $2,650 nationally to cover
staging, carpet cleaning, interior painting, lawn care and house
cleaning – five of the most popular seller home prep projects.
Labor costs vary significantly by region, so sellers in
Los Angeles pay an average of
$4,000 for the same projects,
compared to sellers in Columbus,
Ohio, who pay $1,500.
The two largest closing costs are agent commissions and in most
states, sales or transfer taxes. Nationally, sellers spend
$12,532 for both closing costs on the
median home. Since they are percentages of the home's sale price,
sellers in hot coastal markets like San
Francisco pay $51,520 on the
median home, the highest of the metros analyzed. Sellers in
Indianapolis pay the least
($8,238) as home values are lower and
the state has no transfer tax.
From title insurance to escrow fees, sellers are responsible for
a variety of other smaller closing costs. Even though selling a
home costs money, most (73 percent) sellers are still satisfied
with the transactioniv. To estimate potential profit,
sellers can use Zillow's Sale Proceeds Calculator. It factors in
the home's sale price, mortgage balance and agent commissions,
along with other common seller fees.
"One of the biggest regrets sellers have is not starting the
process early enough," says Jeremy
Wacksman, Zillow Group chief marketing officer. "For those
planning to sell this year, take your time to research all the
costs you could be responsible for and how they may affect your
profit, or even budget for your next home. Partner with a great
agent who can help you understand the nuances in your market – from
what taxes or closing costs you should expect, to which home
renovation projects can help attract the right buyer."
"Sellers need to consider these additional, often necessary
costs when planning to put their home on the market," says
Lucas Puente, Thumbtack economist.
"While it's clear these costs vary widely, often times the easiest
way to ensure a home is fully prepared to be sold is to hire local,
skilled professionals to help with basic home projects."
More information about Zillow and Thumbtack's Hidden Costs of
Selling Report is available on Zillow's blog, Porchlight.
Metro
Area
|
Median
Home Value
(ZHVI), March
2017
|
Estimated
Closing Costs
(commissions
and state
transfer tax on
median home)
|
Basic Home
Prep
Costs
(carpet
cleaning,
interior painting,
lawn care, home
staging and home
cleaning)
|
Total Hidden
Costs of Selling
|
United
States
|
$ 196,500
|
$ 12,532
|
$ 2,658
|
$ 15,190
|
Los Angeles-Long
Beach-Anaheim, CA
|
$ 601,900
|
$ 36,776
|
$4,032
|
$ 40,808
|
Chicago,
IL
|
$ 208,400
|
$ 12,817
|
$2,349
|
$ 15,166
|
Dallas-Fort Worth,
TX
|
$ 205,300
|
$ 12,318
|
$2,011
|
$ 14,329
|
Philadelphia,
PA
|
$ 216,000
|
$ 15,120
|
$2,058
|
$ 17,178
|
Houston,
TX
|
$ 174,500
|
$ 10,470
|
$3,290
|
$ 13,760
|
Washington,
DC
|
$ 382,900
|
$ 27,186
|
$2,481
|
$ 29,667
|
Miami-Fort
Lauderdale, FL
|
$ 249,700
|
$ 16,730
|
$2,749
|
$ 19,479
|
Atlanta,
GA
|
$ 175,800
|
$ 10,724
|
$2,469
|
$ 13,193
|
Boston, MA
|
$ 419,900
|
$ 27,126
|
$2,708
|
$ 29,833
|
San Francisco,
CA
|
$ 843,200
|
$ 51,520
|
$3,585
|
$ 55,105
|
Detroit,
MI
|
$ 138,700
|
$ 9,570
|
$2,229
|
$ 11,800
|
Riverside,
CA
|
$ 322,700
|
$ 19,717
|
$1,506
|
$ 21,223
|
Phoenix,
AZ
|
$ 232,700
|
$ 13,962
|
$2,058
|
$ 16,020
|
Seattle,
WA
|
$ 426,300
|
$ 34,232
|
$3,397
|
$ 37,629
|
Minneapolis-St Paul,
MN
|
$ 241,900
|
$ 15,312
|
$2,197
|
$ 17,509
|
San Diego,
CA
|
$ 532,000
|
$ 32,505
|
$2,731
|
$ 35,236
|
St. Louis,
MO
|
$ 149,300
|
$ 8,958
|
$2,092
|
$ 11,050
|
Tampa, FL
|
$ 183,300
|
$ 12,281
|
$1,778
|
$ 14,059
|
Baltimore,
MD
|
$ 259,200
|
$ 16,848
|
$2,617
|
$ 19,465
|
Denver, CO
|
$ 362,800
|
$ 21,804
|
$2,278
|
$ 24,082
|
Pittsburgh,
PA
|
$ 135,700
|
$ 9,499
|
$2,369
|
$ 11,868
|
Portland,
OR
|
$ 359,800
|
$ 21,588
|
$1,692
|
$ 23,280
|
Charlotte,
NC
|
$ 170,600
|
$ 11,260
|
$1,864
|
$ 13,123
|
Sacramento,
CA
|
$ 361,000
|
$ 22,057
|
$3,140
|
$ 25,197
|
San Antonio,
TX
|
$ 158,500
|
$ 9,510
|
$1,879
|
$ 11,389
|
Orlando,
FL
|
$ 202,900
|
$ 13,594
|
$2,594
|
$ 16,188
|
Cincinnati,
OH
|
$ 151,300
|
$ 9,683
|
$1,966
|
$ 11,649
|
Cleveland,
OH
|
$ 132,400
|
$ 8,474
|
$1,674
|
$ 10,148
|
Kansas City,
MO
|
$ 155,600
|
$ 9,336
|
$1,980
|
$ 11,316
|
Las Vegas,
NV
|
$ 219,200
|
$ 13,700
|
$2,483
|
$ 16,183
|
Columbus,
OH
|
$ 161,700
|
$ 10,349
|
$1,489
|
$ 11,838
|
Indianapolis,
IN
|
$ 137,300
|
$ 8,238
|
$2,309
|
$ 10,547
|
Austin, TX
|
$ 267,500
|
$ 16,050
|
$2,188
|
$ 18,238
|
Zillow
Zillow® is the leading real estate and rental marketplace
dedicated to empowering consumers with data, inspiration and
knowledge around the place they call home, and connecting them with
the best local professionals who can help. Zillow serves the full
lifecycle of owning and living in a home: buying, selling, renting,
financing, remodeling and more. In addition to Zillow.com®, Zillow
operates the most popular suite of mobile real estate apps, with
more than two dozen apps across all major platforms. Launched in
2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and
ZG) and headquartered in Seattle.
Zillow and Zillow.com are registered trademarks of Zillow,
Inc.
Thumbtack
Thumbtack is a local services marketplace that connects
customers who need to get things done with local professionals who
can help. From plumbers and painters to DJs and personal trainers,
Thumbtack helps millions of customers find the right professional
for their project in over 1,000 categories. This translates to more
than $1 billion in annual revenue for
our professionals across the U.S., helping them grow their
businesses on their own terms. Founded in 2009 and headquartered in
San Francisco, Thumbtack is backed
by over $250 million in investment
from Sequoia Capital, Google Capital, Tiger Global Management,
Javelin Investment Partners and Baillie Gifford.
i Zillow and Thumbtack's Hidden Costs of Selling
report factored in closing costs (transfer taxes and agent
commotions) and several basic home prep costs. Zillow computed
transfer taxes by using the tax rate for the primary state within
each metro area (in cases where metro areas cross one or more state
lines), which were then applied to the median home value for that
area. Zillow also assumed 6 percent for real estate agent
commissions and applied it to the median home value for each metro
area. For the basic seller home prep costs, Thumbtack looked at
tens of thousands of quotes from small business professionals
around the country and determined the average cost for each expense
within the selected metros. For the purposes of this analysis,
carpet cleaning, interior painting, lawn care, home staging and
house cleaning were identified as five of the most popular home
maintenance-related projects completed by Thumbtack users prior to
selling a home.
ii According to the 2016 Zillow Group Report on
Consumer Housing Trends.
iii According to the 2016 Zillow Group Report on
Consumer Housing Trends.
iv According to the 2016 Zillow Group Report on Consumer
Housing Trends.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/us-homeowners-can-spend-15000-in-hidden-costs-to-sell-a-house-300459558.html
SOURCE Zillow