Currently Reading

The Cost of Closing on a Home

Advertisement

The Cost of Closing on a Home


March 29, 2018
Piggy bank
Photo: Unsplash

A new study from Zillow found just how expensive closing costs can be. Average homeowners spend $18,342 in additional costs associated with selling a home, and closing costs like transfer taxes and real estate agent commission are $13,357 for a median home.

"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. One large cost related to home selling is real estate agent commission. Typically, home sellers pay about 6 percent of the home's sale price in agent commissions, split between the agents representing both buyer and seller, CNBC reports. Yet, the dollar amount is variable based on a housing market's median home price. 

These levies aren't always applicable. Indiana, for instance, has no transfer taxes. However, homeowners in Seattle can expect to spend $8,487 on these expenses. Forget about trying to deduct transfer taxes when you file your tax return. These aren't deductible to the seller, but they do reduce the amount realized on the sale of the home. If the buyer winds up paying the transfer tax, it's included in the cost basis of the property.

Read more

Related Stories

Coronavirus Resources and Information

Multigenerational Home Demand Jumps Due to Pandemic

The multigenerational home designs of the Lake Club section of the Lakewood Ranch community in Florida meet the growing desire for generations…

Market Data + Trends

Home Prices Increase in 89% of Markets During Quarter One

Home prices continue to rise across the country with 89% of markets posting price gains and the national median home price hitting $319,200.…

Design

Results Are In: Homebuyers See Exercise Rooms as Highly Desirable

An increasing number of homebuyers desire a workout room, according to a recent survey from the National Association of Home Builders. The What…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.