These costs are taking a $20,000 bite out of your home’s sales price


(CNBC) If you’re hoping to make a fortune on the sale of your home, prepare to lose about $20,000 in last-minute expenses. A study from Zillow, a real estate website, showed that the average homeowner spends $18,342 in additional costs associated with selling a home. This includes closing costs – transfer taxes and commissions for real estate agents. These expenses are $13,357 for the median-valued U.S. home. The median sales price for a home in the U.S. is $232,300, Zillow said. Zillow’s analysis excluded the other expenses you can expect to see at closing, including filing fees and the cost of title insurance. “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,” said Jeremy Wacksman, chief marketing officer at Zillow.

Real estate commissions

The payout to the agents representing you and your buyer makes up the lion’s share of the additional costs related to selling your home. Generally, sellers pay about 6 percent of the sales price in commissions. This amount is split between the agents representing the buyer and the homeowner. Read More

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