New Study Tracks the Hidden Costs in Home Selling

May 18, 2017

Millennial homeowners with access to home equity lines of credit (HELOCs) have plans for their money that stray from the traditional home improvement projects, according to a new survey released by Citizens Bank

The notion of a home as a money pit was reaffirmed in a new analysis from Zillow and Thumbtack, which found homeowners spend $15,190 on average in extra or hidden costs associated with selling their property.

According to the companies, more than eight out of 10 home sellers make improvements before listing. Sellers who outsource these projects can spend more than $2,650 to cover the five most ubiquitous seller home prep projects: staging, carpet cleaning, interior painting, lawn care and house cleaning. Labor costs vary significantly by region, with Los Angeles sellers spending an average of $4,000 for the same projects that cost $1,500 in Columbus, Ohio.

The two largest closing costs are agent commissions and in most states, sales or transfer taxes. Nationally, sellers spend $12,532 for both closing costs on the median home, although costs are much higher in the more expensive markets: for example, sellers in San Francisco pay $51,520 on the median home. In comparison, sellers in Indianapolis only pay $8,238—plus, Indiana does not have a transfer tax.

"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."

About the author

Phil Hall

Link copied

Published

May 18, 2017

Military Lending

MISMO, VA Push To Digitize Veteran Loan Eligibility Process

New data standards aim to streamline Certificate of Eligibility requests, reduce manual processing and speed VA loan originations

MISMO has released new standardized data mappings designed to help lenders process VA loan eligibility requests more efficiently as part of the U.S. Department of Veterans Affairs' ongoing digital transformation of its Loan Guaranty program.Developed in collaboration with th...

Non-QM

Untapped Home Equity Creates Opportunity For Alternative-Doc HELOCs

New Home Equity Gap Index estimates U.S. homeowners hold $11 trillion in available equity as some Non-QM lenders expand options for self-employed borrowers

A new Home Equity Gap Index suggests that billions of dollars in home equity remain largely untapped, creating an opportunity for Non-QM lenders offering alternative-documentation HELOCs to borrowers who may not qualify under traditional underwriting.According to The Mortgag...

Sep

Dallas, TX

More from

Industry News

President Trump Cancels 21st Century ROAD To Housing Act

Trump cancels signing the bipartisan housing bill, leaving affordability package in limbo

Industry News

Jun 24, 2026

Commercial, Multifamily Mortgage Debt Tops $5 Trillion In Q1

MBA says outstanding debt grew by $26.3 billion in the first quarter, led by multifamily lending and increased holdings from banks, agencies, and life insurers

Industry News

Jun 18, 2026

Fed Holds Rates Steady, But Outlook Dims For Mortgage Rate Relief

The Federal Reserve left rates unchanged but updated projections show more policymakers expecting additional hikes

Industry News

Jun 18, 2026

Congress Nears Final Vote On 21st Century ROAD to Housing Act

Senate voted 87-8 to advance House-amended package, with final votes expected in coming days

Industry News

Jun 17, 2026

Florida Pending Sales Signal Strong Summer Housing Market

Closed sales rise for a ninth straight month as inventory gives buyers more negotiating power