In a new report, Zillow tells us that sellers will spend an average of $20,851 to prepare their houses to sell. This figure includes things such as real estate commissions, taxes and projects/fixes that need fixing. Zillow’s report does not include things such as closing costs, title insurance fees, the cost of points to lower mortgage rates, etc.
Home improvement costs average $6,570 nationally but can vary from $7,800 for landscaping, painting and carpet cleaning in Sacramento to $4,000 for the same services in Phoenix. Averages for total transaction fees come in at approximately $14,281 for agent commissions and transfer taxes, however, these transaction fees vary based on such things as location, location, location and sale prices.
Zillow tells us 8 in10 sellers will complete at least one project/fix before putting their house on the market to sell. Owners who do, 22% of them, will likely sell their house for above the listing price; 16% of sellers who don’t do at least one project /fix prior to listing will not sell their house above the listing price.
National averages for some of these separate project/fixing costs include:
- Exterior painting – $2,600
- Interior painting – $1,245
- Home staging – $1,805
- Full service lawn care – $145
- Carpet cleaning – $140
Transaction fees are a different story altogether. They can range from $76,015 in San Jose to $9,046 in Cleveland. Check out transaction fee variables in these locations:
- San Francisco – $58.534
- Philadelphia – $16,296
- Chicago – $13,825
- Dallas – $14,580
- Boston – $30,085
According to Skylar Olsen, Zillow’s director of economic research, “Selling is often a complicated process that can require extensive prep in order to put you best foot forward for a successful sale.”
The old adage, “It takes money to make money,” rings true to Olsen’s words.
Thanks to Thumbnail, a site that connects service providers to homeowners, for the above numbers.