Most American homeowners face thousands of dollars in surprise costs when they sell their home according to a report from Zillow
Most American homeowners face thousands of dollars in surprise costs when they sell their home according to a report from Zillow.
It found that the average amount of extra or hidden costs is $15,190 nationally and as 63% of today’s sellers will be new to the process, they are unlikely to have expected it.
Agent commissions and state transfer and sales taxes are the largest unforeseen costs with more than $12,000 paid for closing costs on average nationally. That can be as high as $51,120 for a median priced home in hot markets such as San Francisco.
Sellers in Indianapolis pay just $8,238 in commissions for a median priced home as home values are lower and there is no state transfer tax.
Some other costs are potentially avoidable. Zillow’s research shows that 8 out of 10 sellers do home improvements before selling. Where these tasks are outsourced, there can be an average $2,650 to cover staging, carpet cleaning, interior painting, lawn care and house cleaning.
"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."
Zillow says that three quarters of sellers are satisfied with the transaction despite the costs.
It found that the average amount of extra or hidden costs is $15,190 nationally and as 63% of today’s sellers will be new to the process, they are unlikely to have expected it.
Agent commissions and state transfer and sales taxes are the largest unforeseen costs with more than $12,000 paid for closing costs on average nationally. That can be as high as $51,120 for a median priced home in hot markets such as San Francisco.
Sellers in Indianapolis pay just $8,238 in commissions for a median priced home as home values are lower and there is no state transfer tax.
Some other costs are potentially avoidable. Zillow’s research shows that 8 out of 10 sellers do home improvements before selling. Where these tasks are outsourced, there can be an average $2,650 to cover staging, carpet cleaning, interior painting, lawn care and house cleaning.
"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."
Zillow says that three quarters of sellers are satisfied with the transaction despite the costs.
