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House selling related costs analysis

House selling related costs analysis

According to a recent analysis of real estate website Zillow and marketing services firm Thumbtack, to sell a median-priced house, homeowners across the United States will spend more than $ 15,000 extra or “hidden” fees. These costs include brokerage commissions and house transfer taxes, etc. In addition, more than 80% of sellers will do some renovation before selling. “For those who plan to sell, you should take some time to look at all possible costs that may arise and how they affect your profits and even your future home’s budget,” pointed out by Jeremy Wacksman, chief marketing officer at zillow, in a report, .

To obtain the above conclusion, Zillow added state property transaction taxes and 6%  agaent commission to mid-priced houses in different metropolitan areas. In order to measure various home improvements and decorating costs, Thumbtack studied thousands of small businesses renovating cost throughout the country and calculated the average cost per project in selected cities. Home repair projects analyzed by Thumbtack include carpet cleaning, interior paint, lawn care, interior decoration and house cleaning.

House selling costs are closely related with locations. Within the country, sellers spend an average of $ 12,532 on agency commissions and transfer taxes. But in an expensive real estate market such as San Francisco, a median-priced home seller pays for more than $ 51,000 (because the costs are calculated as a percentage of real estate). For real estate markets that are not expensive, such as Indianapolis, these costs may be less than $ 9,000.

For home improvement projects, labor costs will vary depending on where the homeowner lives. Sellers in Los Angeles spend an average of $ 4,000, compared with an average of $ 1,500 spent in Columbus, Ohio for the same project.

The metropolitan area having the highest hidden cost of house selling is:

●San Francisco: $55,105
●Los Angeles: $40,808
●Seattle: $37,629
●San Diego: $35,629
●Boston: $29,833
●Washington, D.C.: $29,667
●Sacramento, Calif.: $25,197
●Denver: $24,082
●Portland, Ore.: $23,280
●Long Island, NY.: $33,223

While these hidden costs cut the profits homeowners can make through sale – or reduced the amount they can spend on new homes – they do not seem to affect their satisfaction with the sale process. According to Zillow, 73% of sellers are satisfied with their transactions.

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Amy Wong

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