SEATTLE and SAN FRANCISCO, March
27, 2018 /PRNewswire/ -- U.S. homeowners spend
$18,342 on average to sell their
home, according to Zillow® and Thumbtack's 2018 Hidden Costs of
Selling analysisi.
Zillow and Thumbtack identified several common, but often
overlooked, seller expenses and calculated what they would cost
around the country. Since most (61 percent) of today's sellers have
never sold a home before, many of these costs may come as a
surpriseii.
Home sellers spend more time getting their home ready to sell
than it will spend on the market, with the majority (78 percent) of
sellers making at least one home improvementiii. Sellers
who hire professional help spend $4,985 on average to cover many basic seller prep
projects like painting, staging, carpet cleaning, lawn care and
gardening and local moving costs. However, labor costs can vary
significantly by metro. Sellers in San
Jose, Calif. pay $6,580 on
average, whereas sellers in Dallas
pay an average of $3,720 for the same
projects.
Home sellers are also responsible for agent commissions and
transfer or sales taxes, which are two of the largest closing
costs. Nationally, sellers spend $13,357 on average for both costs. However, since
they are percentages of a home's sale price, sellers in pricey
markets like San Jose pay much
more – $74,927 on average for the
median priced home, the highest of the metros analyzed. Sellers in
Indianapolis pay the least
($8,604), as home values are lower
and the state has no transfer tax.
Despite low inventory in many parts of the country, sellers
still encounter massive pain points. From unexpected costs to
determining the right list price, three out of four sellers say it
was stressful or challenging to sell their home, according to the
2017 Zillow Group Consumer Housing Trend Report. Another 76 percent
of sellers say they made at least one concession during the
process, with reducing the list price as the most-cited
compromise.
"Even in the hottest housing markets in the country, selling a
home takes time and costs money," says Jeremy Wacksman, Zillow's chief marketing
officer. "From decluttering and staging to pre-inspections, agents
and homeowners often spend months behind the scenes prepping a home
– well before it's listed on the market. If you're planning to sell
this year, try to take some time to research what costs you may be
responsible for and how they could affect your profit or even
budget for your next house."
"While there could be some initial sticker shock associated with
the costs of selling a home, investing in home improvement projects
like painting and home staging often proves to be very valuable in
the long-run," said Lucas Puente,
Thumbtack economist. "Homeowners starting to think about selling
should take time to research and budget for the projects that can
ultimately help sell their home faster and at a higher value."
Metro
Area
|
Median Home Value
(ZHVI), Jan. 2018
|
Estimated Closing
Costs
(commissions
and state transfer tax on
median home)
|
Basic Home Prep
Costs
(carpet
cleaning,
interior and
exterior painting,
lawn care,
gardening home
staging, home
cleaning and local
moving)
|
Total Hidden Costs
of Selling
|
United
States
|
$ 209,100
|
$ 13,357
|
$ 4,985
|
$ 18,342
|
Los Angeles-Long
Beach-Anaheim, CA
|
$ 640,600
|
$ 39,141
|
$ 5,110
|
$ 44,251
|
Chicago,
IL
|
$ 214,300
|
$ 13,179
|
$ 4,800
|
$ 17,979
|
Dallas-Fort Worth,
TX
|
$ 221,100
|
$ 13,266
|
$ 3,720
|
$ 16,986
|
Philadelphia,
PA
|
$ 225,000
|
$ 16,875
|
$ 4,440
|
$ 21,315
|
Houston,
TX
|
$ 186,900
|
$ 11,214
|
$ 4,690
|
$ 15,904
|
Washington,
DC
|
$ 387,500
|
$ 28,869
|
$ 3,960
|
$ 32,829
|
Miami-Fort
Lauderdale, FL
|
$ 266,600
|
$ 17,862
|
$ 3,860
|
$ 21,722
|
Atlanta,
GA
|
$ 189,100
|
$ 11,535
|
$ 4,380
|
$ 15,915
|
Boston, MA
|
$ 442,600
|
$ 28,574
|
$ 5,460
|
$ 34,034
|
San Francisco,
CA
|
$ 928,600
|
$ 56,737
|
$ 6,350
|
$ 63,087
|
Detroit,
MI
|
$ 145,000
|
$ 10,005
|
$ 4,350
|
$ 14,355
|
Riverside,
CA
|
$ 345,000
|
$ 21,080
|
$ 5,190
|
$ 26,270
|
Phoenix,
AZ
|
$ 247,900
|
$ 14,874
|
$ 4,940
|
$ 19,814
|
Seattle,
WA
|
$ 476,800
|
$ 37,095
|
$ 6,460
|
$ 43,555
|
Minneapolis-St Paul,
MN
|
$ 251,300
|
$ 15,907
|
$ 4,770
|
$ 20,677
|
San Diego,
CA
|
$ 575,100
|
$ 35,139
|
$ 5,240
|
$ 40,379
|
St. Louis,
MO
|
$ 152,000
|
$ 9,120
|
$ 3,890
|
$ 13,010
|
Tampa, FL
|
$ 197,500
|
$ 13,233
|
$ 3,840
|
$ 17,073
|
Baltimore,
MD
|
$ 261,400
|
$ 16,991
|
$ 4,150
|
$ 21,141
|
Denver, CO
|
$ 387,400
|
$ 23,283
|
$ 4,950
|
$ 28,233
|
Pittsburgh,
PA
|
$ 138,700
|
$ 10,403
|
$ 4,140
|
$ 14,543
|
Portland,
OR
|
$ 376,900
|
$ 22,614
|
$ 6,570
|
$ 29,184
|
Charlotte,
NC
|
$ 185,300
|
$ 11,489
|
$ 3,970
|
$ 15,459
|
Sacramento,
CA
|
$ 387,500
|
$ 23,676
|
$ 6,460
|
$ 30,136
|
San Antonio,
TX
|
$ 169,300
|
$ 10,158
|
$ 4,650
|
$ 14,808
|
Orlando,
FL
|
$ 217,600
|
$ 14,579
|
$ 3,820
|
$ 18,399
|
Cincinnati,
OH
|
$ 156,800
|
$ 10,035
|
$ 4,730
|
$ 14,765
|
Cleveland,
OH
|
$ 137,600
|
$ 8,806
|
$ 4,180
|
$ 12,986
|
Kansas City,
MO
|
$ 167,300
|
$ 10,038
|
$ 4,210
|
$ 14,248
|
Las Vegas,
NV
|
$ 251,400
|
$ 16,366
|
$ 4,520
|
$ 20,886
|
Columbus,
OH
|
$ 173,200
|
$ 11,085
|
$ 4,640
|
$ 15,725
|
Indianapolis,
IN
|
$ 143,400
|
$
8,604
|
$ 4,820
|
$ 13,424
|
San Jose,
CA
|
$
1,226,300
|
$ 74,927
|
$ 6,580
|
$ 81,507
|
Austin, TX
|
$ 281,500
|
$ 16,890
|
$ 4,560
|
$ 21,450
|
i Zillow and Thumbtack's 2018 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 and exterior painting, lawn care,
gardening, home staging, house cleaning and local moving costs were
identified as eight of the most popular seller prep projects
completed by Thumbtack during the selling a home sale process.
ii According to the 2017 Zillow Group Consumer
Housing Trends Report. Sellers spend five months on average
thinking about and prepping to sell their home before listing. The
home then spends an average of three months listed on the market.
The entire process takes just over eight months. Full stat
here.
iii According to the 2017 Zillow Group Consumer
Housing Trends Report.
Zillow Research
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. In addition, Zillow
operates an industry-leading economics and analytics bureau led by
Zillow's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data
analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also
sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and
investment and market strategists to predict the path of the Zillow
Home Value Index over the next five years. Launched in 2006, Zillow
is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
About Thumbtack
Thumbtack is an app and a website that finds you local
professionals for any project. It can instantly show you available
businesses and how much they'll cost. Through Thumbtack, millions
of customers are completing projects in nearly 1,000 categories
across all 50 states. Founded in 2008 and headquartered in
San Francisco, Thumbtack is backed
by Sequoia Capital, Google Capital, Tiger Global Management,
Javelin Investment Partners and Baillie Gifford.
For more information, visit www.thumbtack.com or contact
press@thumbtack. Download the app for Apple and Android
devices.
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SOURCE Zillow