Each step in the process of selling your home comes with a cost when you are selling your house on the traditional market. After all the hard work you have put in prepping your home and doing showings, you have finally sold your home, but now the new focus becomes the complex closing process wherein the title on the home transfers to the new owners. Quite often, sellers’ are relying on the proceeds of their home sale to purchase their next home and unforeseen obstacles arise at the closing table, creating problems, stress, more paperwork and less money in your pocket than you expected.
For a first-time seller this process can be overwhelming and confusing; plus being caught off guard at closing is not something anyone wants. Deductions made from the proceeds of a traditional real estate transaction can quickly dwindle the amount of cash you’ll have in hand when you walk away from the closing table and interfere with any future plans you may have. For sellers, it is quite common for closing costs to add up to eight to ten percent of the proceeds or even more. Our goal is to help you, the seller, be aware of the expenses associated with this process and to walk into the closing prepared. We will explore what Venice home sellers need to know about closing costs.
An important piece of information, Venice home sellers need to know about possible prepayment penalties on their mortgage or equity loan payoffs, which may be included in the closing costs. Penalty fees can add up if you are paying off a loan early, it’s possible to even lose money on the sale if these are high enough. In the best-case scenario, there are no prepayment fees, your amount owed on your mortgage is less than the price you sold your home for and your final sales price pays off the balances on any loans and leaves you with a profit.
Commissions and Fees
Real estate agents charge Venice home sellers a commission for their services, paid at the closing. Unknown to some, sellers traditionally pay the commissions for the agents on both sides – the sellers agent and buyers agent. The typical amount is six percent of the home’s final sales price, split between your real estate agent and the agent for the buyers. Often, the buyers and sellers split the escrow fees depending upon the terms of the contract, which must be factored in as well.
Florida Taxes and Document Fees
Naturally, sellers must pay any taxes still due on the property in full before the title transfers and the document recorded, which will be calculated in the closing fees and reduced from the sellers profit. Florida transfer taxes/documentary stamp taxes are another closing cost Venice home sellers in Florida will pay when the title transfers to the buyer. Sellers in Florida will also see an intangible tax listed on their closing documents, a special fee in Florida.
Venice home sellers need to traditionally pay for the title insurance, protecting the buyers from possible title defects, typically paid from the sellers closing costs for the buyers safety and ranging from $1500-$2200 on average.
Often Venice, home sellers hire attorneys to represent their interest at closing and need to know these attorney fees may be part of the closing costs.
Our last category of additional expenses, while they may vary greatly, should still be considered. Selling your home most likely will have an impact on your income taxes and any capital gains depending on your specific situation. Your title company may charge fees, depending upon the services they provide. Additional expenses that Venice home sellers should be aware of are the remaining balance of any existing liens or judgments against the property, any homeowner association fees that may be due as well as prorated property taxes. Don’t forget, sellers must complete any agreed upon repairs or any other improvements agreed upon in the sales contract as out-of-pocket expenses before closing. If you sweetened the deal by offering to pay the buyers closing costs, these would also come out of the final proceeds. Finally, sellers must have also paid any other service providers involved in the transaction at this time.
Maio Strand Property Group
Want to avoid all of these costs? Working with a direct buyer from Maio Strand Property Group is an alternative that makes it easy for Venice home sellers to save the closing costs for themselves and avoid the hassles of traditional closings. At Maio Strand Property Group, our direct buyers will take the time to outline your profits on the sale through a traditional real estate listing so you can compare realistic numbers against our fair offer for your home as-is. Decide for yourself if a direct sale for cash to Maio Strand Property Group is best for your situation. At Maio Strand Property Group, we don’t charge commissions, and no hidden fees are coming off the top of your profits. With simple contracts and no wire transfers to worry about with Maio Strand Property Group, your guaranteed closing can be in a matter of a few days. Relax, if your new home isn’t ready, Maio Strand Property Group has the flexibility to set the closing for a convenient date. Without all of the complications, making a direct sale to Maio Strand Property Group means you don’t need to worry about prepping, repairing, staging, marketing expenses, or even a final cleaning; just move what you want in your new home and leave the rest to us. At Maio Strand Property Group, our direct buyers have years of experience with many unique circumstances at play; they are happy to answer any questions or concerns you have about the process, with absolutely no obligation. Call Maio Strand Property Group at (631) 335-4055 or send us a message to learn more.