If you’re like many other homeowners, you are thinking about taking advantage of this seller’s real estate market. If you’ve been paying attention to homes for sale in Kissimmee you will have seen the increase in value over the last year that has helped sellers realize now is the time to list their home for sale and cash in on their equity.
While you will likely see great returns from selling your home, there are some costs associated with the sale that you should be prepared for.
Using a real estate agent has proven to be the most profitable and successful way to list and sell your home. Real estate commissions can vary from agent to agent and brokerage to brokerage, but somewhere between 5-6% is common. These fees can cover a myriad of marketing expenses such as photography, digital marketing, signage, and even staging costs among others.
While this may sound like a lot of money, the benefits of having an experienced real estate expert on your side will help you make more money from your sale and will ensure the most profit in your pocket.
For those who are still paying a mortgage, a portion of the proceeds from sale of your home will go towards paying that mortgage off. If you currently have a line of credit associated with the home this will also need to be paid off as all liens against the home must be satisfied at the time of settlement in order to transfer ownership.
You can contact your mortgage company to request the current payoff amount and any fees associated with the payoff.
Property Tax and Doc Stamp Tax
In Florida, property taxes are paid in arrears which means that bills are sent out in November, and the tax bill is assessed for the year just completed. This causes many real estate sales to include a prorated credit to the buyer for the taxes associated with the time of the year that you spent in the home.
Unless the sales contract provides otherwise, Florida sellers are required to pay a documentary stamp tax whenever real estate is conveyed and ownership is transferred. This tax is based on the county in which the property is located as each county has a slightly different taxation rate.
Feel free to reach out to your county financial department for more information or questions on property tax.
Title & Escrow
Whether you use a title attorney or a title agency, there will be fees associated with drawing up closing documents and representing you during the closing process. The average cost for a closing is between $500-$800 and is typically paid by the buyer or split between buyer and seller. This split will be negotiated in the sales contract for the home.
Part of the duties of the title service company is the property lien search. This search ensures there are no outstanding liens clouding the mortgage. These liens can include mortgages, mechanics liens, outstanding judgments, code violations, and utility liens.
A chain of title will also be issued stating the history of ownership of the property. This research verifies that all previous transfers of the property were executed correctly and that the property can be transferred again.
The lien search and chain of title will likely cost between $200-$400.
An optional cost that some sellers choose to add during the sale of the home is a home warranty. This addition can help ease buyer’s minds and can make the house more attractive while on the market.
If this is a route you decide to go, you can expect to pay between $300-600 for the warranty.
Some loans require a pest inspection in order to secure financing. VA loans for instance require the seller to pay the fee associated with the test which costs roughly $100.
Even with these expenses, the sale of your home can produce substantial profits. Taking advantage of a strong seller’s market in a time with rising home prices and equity will ensure you get the most out of your sale. If you've considered selling, now may be the perfect time. Contact us so we can get the most for your home, today!