Selling Your House In Detroit? It’s Gonna Cost You

If you’re planning on selling your house in Detroit; be prepared for some sticker shock. It’s going to cost you.

Detroit (and Michigan in general) was hit particularly hard by the economic recession. Although much has been made of Detroit’s re-emergence over the last few years; there’s still some way to go.

In the dark days of the recession, selling your house in Detroit was a fool’s errand. It’s true that some homes were selling for literal pennies just so the homeowners could get out from under their mortgage. Now, just a few years later, it isn’t quite so bad.

However, if you’re thinking of selling your house in Detroit, be prepared for it to cost you.

The Cost of Closing

The median value of house in Detroit right now is $145,500 accodring to Zillow. However, the closing costs associated with selling that home amount to a whopping $14,355!

Seem like a lot? It’s no small potatoes. The costs associated with selling that home break down as follows:

  • $8,700 in commission.
  • $1,305 in transfer taxes
  • $4,350 in home-preparation expenses.

The good news? That 14K is actually well below the national average of $18,342.

Commission is usually the largest percentage of associated closing costs. Of  course, commission is based on the sale price of the home so while the percentages may not change based on location; the actual dollar amount might.

Home preparation expenses typically make up the second largest expense associated with selling your home. Again, however, your mileage may vary.

“While there could be some initial sticker shock associated with the costs of selling a home, investing in home improvement projects like painting and home staging often proves to be very valuable in the long-run,” according to Thumbtack economist Lucas Puente.

Looking To Sell?

If you’re looking at selling your house in Detroit in order to move elsewhere; City vs City can help you decide where to head next! City vs City is a powerful cost of living calculator that determines the costs associated with living in your chosen city.

Using a proprietary algorithm, City vs City calculates costs at the zip code level. Then, we stack the costs up against another city of your choosing. As a result, City vs City can show you which city can offer you a better cost of living.

Download the City vs City App today.