Buying a home is expensive today, but selling one isn’t cheap, either. Some expenses are negotiable, but it’s critical you realize you will foot most, if not all, of the costs. How much and what are the costs of selling a home in Orlando?
Plan for a percentage of the price for the realtor fees, which fall under the seller’s realm. Add an extra percentage of the purchase price for costs such as transfer taxes, attorney fees, and others.
Home prices in Orlando are about 3% lower than the national average. The median Orlando home price as of June 2022, according to the Orlando Regional Realtor Association (ORRA), is about $387,000, an increase of 22.9% from June 2021.
Here’s an in-depth rundown of the typical seller costs and how much they’ll run you.
Average Cost of Selling an Orlando Home
While you’ll likely see great returns from selling your house, there are some associated costs with the sale you should prepare for. These costs include:
- Sale preparation
- Real estate agent fees
- Closing costs
- Moving expenses
The average cost to sell a home in Orlando is about 11% or more of the final home sale price – including the realtor commission of 5.40% and other expenses at 5.6%. Based on the mean home value, the average cost to sell a house in Orlando is about $42,570.
We explain further what items are contributing to this cost in the following section.
Common Home Selling Expenses
Selling a home will cost some up-front money and closing fees when the home closes, which can be costly. Using a seller closing cost calculator for Florida can give you a better estimate of how much it costs to sell a home.
The amount will vary depending on your location, but it’s still a significant number. So, what are the costs associated with selling a home?
Before listing your property, you must ensure it’s market-ready to attract buyers. Here are the four costs to consider while preparing your house for sale.
As prospective buyers see your home for the first time, make sure they focus on its best features. Staging can help by arranging décor and furniture to make a house as visually pleasing as possible to buyers. The average cost for staging is $1,500.
Hiring a professional stager can range between $2,300 and $3,200. The do-it-yourself route will involve making a few purchases, including paint, light fixtures, decorative accessories, new furniture, and curtains.
Landscape maintenance can help increase curb appeal and entice buyers, especially those shopping online and relying on photos to compare properties. Maintenance involves items such as planting flowers, pruning shrubs, and mulching. These tasks can cost between a few hundred dollars to $3,239 for a comprehensive service.
Home Maintenance and Repairs
A pre-inspection assessment can help pinpoint what needs fixing. The cost of repairs varies based on the condition of your property. Decide whether you can do the repairs yourself or need to bring in professional help. Remember to compare quotes, so you have a price range to consider.
Small renovations that add value to buyers are an excellent idea when you have little money or time. For example, spend a weekend updating your kitchen cabinet pulls and installing a new backsplash.
The average two-hour real estate photo shoot in Orlando can cost up to $363. You can save money on photography by hiring a real estate agent offering the service as part of their package.
Real Estate Agent Fees
How much does it cost to sell a house with a realtor in Orlando? The statewide average is 5.4%, and the rate may be lower or higher depending on your area.
Fortunately, you can always negotiate realtor fees. About 46% of home sellers negotiate with their agents, and 55% of them are successful.
State laws bind the agent to do their best to sell your home. Some duties your agent performs include:
- Selling duties: These include setting the asking price, listing, and marketing your property. The agent also organizes showings of your home and discusses the listing with others in the area. Further, they will screen potential buyers to ensure they are serious, and then negotiate for the best price.
- Marketing services: The best agents put up a “for sale” sign in the yard and list your property in the local Multiple Listing Service (MLS). The agent also markets the home on their website, social media platforms, and multiple industry websites. Efficient agents will organize virtual home tours while placing ads in real estate publications and local newspapers.
- Advice: Your seller agent also helps increase the home’s curb appeal and even offers advice on what to do to make the property more attractive.
- Management: The best agents offer regular updates on the sale progress.
Sellers and buyers share the burden of paying for closing costs, but not the same things. So, what fees do sellers pay when selling a house?
Title and Closing Fees
You must transfer legal ownership of the property to the successful buyer, but a settlement agent carries out a title search to ensure nobody else is claiming the property. Title fees pay the agent handling the search, title transfer, and other related costs.
The typical title transfer cost is 0.35% of your home’s value. The amount comes to about $1,354.50 for the average home in Orlando.
An insurance policy protects the buyer in case of issues that arise because of the previous owner’s title. Some problems include clerical errors and full ownership disputes. Title insurance covers the fees for legal representation or reimbursement of a home value for mistakes.
Title insurance in Orlando is about 0.53% of the ultimate sale price. So, for the average home, the insurance comes to $2,051.10.
Documentary Stamp Tax
The Florida documentary stamp tax rate is $0.70 per $100 paid for a property in all counties apart from Miami-Dade County.
If you sell for Orlando’s median home value, $387,000, you’ll pay $2,709.
Orlando collects property taxes annually. You’ll pay the taxes at closing for the portion of the year you own the property. This way, the buyer will not pay property taxes for an entire year when they only own it for a few months. Property tax varies depending on the location of your property.
Moving costs are between 1% and 2% of your home’s value. The factors influencing these expenses include:
- Whether you’re moving a long or short distance
- The number of household items you’re hauling
- Whether you’ll hire professional movers or move yourself
A full-service mover handles everything from packing belongings in your old home to unpacking them at the destination. The service cost can be an hourly fee or a flat fee, depending on what’s convenient for you.
Remember that moving is twice as expensive when relocating in the summer months. The demand for professional moving services and trucks peaks as families move when kids are out of school and college students are moving to and from campus.
You also need to account for a transition period between selling your home and moving into a new one. The home transition and overlap costs can be as high as 1% of the home’s sale value.
Perhaps you closed on the new home, so you’re paying for two properties simultaneously. Some costs include utilities, mortgages, property taxes, homeowners’ insurance, and HOA fees.
If you’re still looking for the right home or have not closed on the new one, budget for temporary living arrangements. Also, account for the temporary storage of furniture and other belongings. Average self-service storage fees range from $66 to $135, depending on the unit size.
How to Keep Orlando Home Selling Costs Low
Selling a home may seem like an exciting venture, considering the money coming in. But there are costs. The best strategy is to reduce the costs of selling your Orlando home starts well before the sale.
Here are tips to keep costs low and improve your profit margin.
Shop Around for Realtors
The first step to selling your home is hiring a real estate agent. However, the most efficient way to find a realtor is to search your local area for vetted agents. Compare reviews and the number of homes they sell using online search tools to narrow down the top choices.
Other tips for getting the best local realtors include:
- Getting referrals from family members, friends, or colleagues you trust
- Checking out the local housing market in person by driving around and observing how agents engage with buyers
- Scheduling meetings with at least three agents
- Clarifying the reason for selling your home
- Discussing the strategy they’ll use and the number of showings
- Eliminating realtors with unrealistic list prices or a high dual agency rate, or who try to lock you into a contract
Sell Your Home at the Right Time
Timing isn’t everything when selling a home in Orlando, but it influences how long it will stay on the market and the price you get. Conduct market research to boost the chances of getting the best outcome possible and reduce listing costs.
The best month to get a good price in Orlando is December. The median sale price for Orlando homes in December is $335,000 as of 2021. Sell your Orlando home fast in November, when the average days on the market is 51 – four days faster than the annual average.
The worst month to sell your home is January, when prices drop by up to 15%. January is also the slowest time to sell because it may take up to 22 more days.
The typical real estate commission is 5.40% of the property’s last price. You, the seller, usually pay the agents the commission. However, the rates are negotiable, with some agents willing to offer less than the usual 3% seller commission, especially if you have a high-priced property.
Further, the market may favor property sellers and provide opportunities to negotiate multiple closing cost items, including transfer taxes and transaction costs. While some items are for the seller, the buyer is responsible for appraisals, title search, lender title insurance, appraisal, inspection, recording, and survey fees.
You can negotiate with a potential buyer in case of multiple offers to see if they’re willing to pay some costs. Plus, a good realtor will negotiate for you if your negotiating skills aren’t adequate.
Summary of Costs Associated with Selling a Home in Orlando
Selling your Orlando home is exciting, but not free! As you consider listing your property to cash in on current trends, be sure you understand the fees you’ll pay to get a sense of how much cash you’ll take home.
The largest expense is likely the real estate agent commissions. But other costs, including home improvement, moving, and sale preparation, are critical considerations. Use a cost-to-sell-a-house calculator for an estimate of what you walk away with.
However, contact a local realtor today to get more accurate numbers.