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.