Americans are expected to spend a record $327 billion on home renovations and repairs in 2017—and a big part of that spending is going towards the hidden costs of selling a home. That’s right, selling a home isn’t just about making money, it’s about spending some too.
In fact, U.S. homeowners spend an average of $15,190 on extra or hidden costs associated with selling their home, according to a new analysis from Thumbtack conducted with real estate and rental marketplace Zillow. And since 63 percent of today’s sellers have never sold a home before, some of these costs could come as a big surprise.
Roughly eight out of 10 home sellers make improvements before listing their home for sale. While some people opt to do the work themselves, those who hire a professional to help can expect to spend more than $2,650 nationally to cover staging, carpet cleaning, interior painting, lawn care and house cleaning—five of the most popular seller home prep projects. Labor costs vary significantly by region, which means sellers in Los Angeles pay an average of $4,000 for the same projects, compared to sellers in Columbus, Ohio, who pay $1,500.
The other common, but sometimes overlooked selling 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. Since they are percentages of the home’s sale price, sellers in hot coastal markets like San Francisco pay $51,520 on the median home, the highest of the metros analyzed. Sellers in Indianapolis pay the least ($8,238) as home values are lower and the state has no transfer tax.
For more on the hidden costs of selling a home, check out the full Zillow and Thumbtack Hidden Costs of Selling Report.