On average, Seattle homeowners spend $43,555 on average just to sell their home, according to a new Zillow and Thumbtack study. This can come as a surprise to much of today’s sellers who have never sold a home before.
A vast majority of sellers, 78 percent, make at least one home improvement before selling. Costs include an average of $6,460 on basic home prep projects, like carpet cleaning and basic yard work, and $37,095 for closing costs.
Seattle had the fourth highest seller costs of all metro cities analyzed at $43,555. San Jose has the highest seller costs at $81,507, followed by San Francisco at $63,087, and Los Angeles in the third spot at $44,251. The nationwide average cost for selling a home is $18,000.
Unique to only a few markets, sellers in Seattle should also be prepared for capital gains tax, which can cost sellers an additional $135,315 in the Clyde Hill neighborhood and $780 in Woodway depending on the region.
Those hoping to sell their homes are responsible for agent commissions and transfer or sales taxes, the two highest costs. Nationally, the study revealed that sellers spend an average of $13,357 for both costs.
“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,” said Jeremy Wacksman, Zillow's chief marketing officer."
Selling a home can be difficult despite low inventory in many parts of the country. Sellers often face unexpected costs and struggle finding the right listing price. The 2017 Zillow Group Consumer Housing Trend Report shows that 76 percent of sellers say they reduced the list price as a compromise.
"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.