According to a recent analysis by Zillow, home sellers spend an average of $15,190 on expenses that are common when placing a home on the market, but often overlooked. Some of those expenses include closing costs and home improvements.
An excess of 80 percent of sellers spend on home improvements prior to listing their homes, with the most popular home improvements including new carpeting, cleaning services, painting and related supplies, lawn care and staging, coming to an average of $2,658. Sellers also typically spend on closing costs, commissions to real estate professionals, and sales or transfer taxes, coming to an average of $12,532. Keep in mind that closing costs vary substantially based on location.
“One of the biggest regrets sellers have is not starting the process early enough,” says Jeremy Wacksman, Chief Marketing Officer at Zillow Group. “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 of closing costs you should expect, to which home renovation projects can help attract the buyer.”
“Sellers need to consider these additional, often necessary costs when planning to put their home on the market,” says Lucas Puente, Economist at Thumbtack, which also conducted the analysis. “While it’s clear these costs vary widely, often times the easiest way to ensure a home is fully prepared to be sold is to hire local, skilled professionals to help with basic home improvements.”
Enlisting the help of professionals may be an option a seller thinks is unnecessary, but the truth is that hiring someone who has experience may save the home seller time and money, as well as ensure the projects are completed properly and efficiently.