Closing Costs for Sellers in the Greater Orlando Area
Sometimes when an Orlando area homeowner considers listing their home for sale they often think about how much they could profit from their home sale and forget about factoring in the cost of getting their home sold. To accurately calculate how much you could profit from your Orlando area home sale it is good to remember and consider that sellers pay some closing costs in a home sale.
Both the buyer and the seller are responsible for different portions of the cost associated with the sale of a property. These costs can vary depending upon the particular characteristics of the property sale but a seller should expect to pay anywhere from 6 to 10% of the sale price and closing costs to finalize the sale of the property. Let's take a closer look at seller-paid closing costs.
Real estate commission
One of the most significant closing costs for Florida home sellers is the settlement of real estate commissions for both the selling and buying real estate representatives. The average real estate commission is six percent of the property's sale price which is split evenly between both the buying and selling real estate agents that worked on the negotiation of the sale contract. These commissions are most often taken out of the proceeds from a home sale which essentially means they are paid for by the home seller.
If an Orlando area homeowner has been paying a mortgage on the property they listed for sale they will be expected to pay off their loan in its entirety. This payoff balance is often slightly higher than the current remaining balance on your mortgage. This has to do with the prorated interest on the mortgage. In addition to your first mortgage, any other loans that you took out against your home will need to be paid at this time.
Recording fees and transfer taxes
Many states impose a transfer tax when you sell your home to transfer the title from the selling owner to the new buying owner of the property. At this time property taxes are also due to transfer the title to new ownership. In addition to this sellers often pay for the buyer's title insurance premium as part of closing costs. This protects both the buyer and the mortgage lender if there should be problems that pop up with the title after the purchase of the home.
Anything you do upon sale of the home
There are additional closing costs that pop up with specific properties. For example, if you live within a neighborhood that has a homeowner association and you have unpaid homeowners association dues these will be due upon the sale of the property. There can also be escrow fees and prorated property taxes. There could also be additional costs like termite inspection or remediation costs if necessary after the home inspection was conducted or any home warranty premium or repair credits depending upon the negotiation of the sale contract between the buying and selling parties.
If you are considering selling your home I can help. Contact me anytime to walk through the details of your home sale and how much you can expect to profit from the sale of your greater Orlando area home. I'm here to answer all of your greater Orlando area real estate questions about buying or selling at home.