U.S. Homeowners Can Spend $15,000 in Hidden Costs to market a homely house

18 May

U.S. Homeowners Can Spend $15,000 in Hidden Costs to market a homely house

SEATTLE and SAN FRANCISCO, May 18, 2017 /PRNewswire/ — Nationally, U.S. homeowners spend $15,190 typically in hidden or extra costs connected with selling their home, according to a fresh analysis from Zillow® and Thumbtacki. Since most (63 percent) of today’s sellers haven’t sold a home before, a few of these costs could come as a surpriseii.

To help with budgeting, Thumbtack and zillow calculated a few common, but overlooked often, seller expenses including telemarketer and taxes commissions, along with five optional home prep projects.    

More than eight out of 10 home sellers make improvements before listingiii. Although some sellers would rather complete these projects themselves, those that outsource can get to spend a lot more than $2,650 to cover staging nationally, rug cleaning, interior painting, lawn house and care cleaning – five of the very most popular seller home prep projects. Labor costs vary by region significantly, so sellers in Los Angeles pay typically $4,000 for exactly the same projects, in comparison to sellers in Columbus, Ohio, who pay $1,500.

The two largest closing costs are agent commissions and generally in most states, transfer or sales taxes. Nationally, sellers spend $12,532 for both closing costs on the median home. Being that 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 best of the metros analyzed. Sellers in Indianapolis pay minimal ($8,238) as home values are lower and hawaii does not have any transfer tax.

From title insurance to escrow fees, sellers have the effect of a number of other smaller closing costs. Though selling a home costs money even, most (73 percent) sellers remain content with the transactioniv. To estimate potential profit, sellers may use Zillow’s Sale Proceeds Calculator. It factors in the home’s sale price, mortgage balance and agent commissions, and also other common seller fees.

“One of the primary regrets sellers have isn’t starting the procedure early enough,” says Jeremy Wacksman, Zillow Group chief marketing officer. “For all those likely to sell this season, invest some time to research all of the costs you will be in charge of and how they could affect your profit, or cover the next home even. Partner with an excellent agent who is able to help the nuances are understood by you in your market – from what taxes or closing costs you need to expect, to which home renovation projects might help attract the proper buyer.”

“Sellers have to examine these additional, often necessary costs when likely to put their home out there,” says Lucas Puente, Thumbtack economist. “While it’s clear these costs vary widely, quite often the simplest way to make sure a home is ready to be sold would be to hire local fully, skilled professionals to greatly help with basic home projects.”

More information regarding Zillow and Thumbtack’s Hidden Costs of Selling Report can be acquired 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

(rug 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® may be the leading real rental and estate marketplace focused on empowering consumers with data, inspiration and knowledge round the accepted place they call home, and connecting them with the very best local professionals who is able to help. Zillow serves the entire lifecycle of owning and surviving in a home: buying, selling, renting, financing, remodeling and much more. Along with Zillow.com®, Zillow operates typically the most popular suite of mobile property apps, with an increase of 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 really a local services marketplace that connects customers who have to get things finished with local professionals who is able to help. From painters and plumbers to DJs and fitness trainers, Thumbtack helps an incredible number of customers find the appropriate professional because of their project in over 1,000 categories. This means a lot more than $1 billion in annual revenue for the professionals over the U.S., helping them grow their businesses independently terms. Founded in ’09 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 Baillie and Partners Gifford.

i Zillow and Thumbtack’s Hidden Costs of Selling report considered closing costs (transfer taxes and agent commotions) and many basic home prep costs. Zillow computed transfer taxes utilizing the tax rate for the principal state within each metro area (where metro areas cross a number of state lines), that have been put on the median home value for that area then. Zillow also assumed 6 percent for agent commissions and applied it to the median home value for every metro area. For the essential seller home prep costs, Thumbtack viewed thousands of quotes from small company professionals round the country and determined the common cost for every expense within the selected metros. For the purposes of the analysis, rug cleaning, interior painting, lawn care, home staging and house cleaning were defined as five of the very most popular home maintenance-related projects completed by Thumbtack users ahead of selling a home.

ii Based on the 2016 Zillow Group Report on Consumer Housing Trends. 
iii Based on the 2016 Zillow Group Report on Consumer Housing Trends. 
iv Based on the 2016 Zillow Group Report on Consumer Housing Trends.

SOURCE Zillow

For more info: Alexa Fiander, Zillow, press@zillow.com, or Justine Gananian, Thumbtack, justine@thumbtack.com

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