Do you know you can eat up almost 10% of your home’s final sale price in the process of selling your house fast in Orange County, CA? We buy houses fast in Orange County, CA, and are well too familiar with sellers’ expenses, especially those between repairs, realtor commissions, closing costs, moving fees, and more. Undoubtedly, selling a house can be expensive in California. Therefore, you need to understand the other costs attached to dealing in real estate in Orange County beyond the down payment.
In a quest to deal in real estate, you can easily come across materials on how to sell your house fast in Orange County CA. Unfortunately, only a few such sources can provide you with accurate information on the cost of selling your house quickly in Orange County, CA. Thankfully, you’re here! Read on to discover the cost of selling a house in Orange County.
Types of Closing Costs Incurred By Sellers
Avoid surprises at the closing table, as we provide you with due diligence on the cost of real estate deals. You need to know what your closing costs are going to be as early as possible before selling your house. Because some costs are incurred by the seller and others by the buyer. However, different regions have varying customs but in Orange County, this order is maintained.
Are these rules? Of course not, because all closing costs are negotiable like the price of the home. Closing costs include appraisals, inspections, lender fees, possible repairs, and more, particularly, let’s look at the ones you will be paying as a seller.
1. Real Estate Agent Commission
If you made a quick house sale, by selling your house fast for cash in Orange County CA, you won’t need to bother about real estate agent commission. Homeowners who sell their house traditionally, however, have a thing or two to learn here. Usually, the combined real estate agent commissions account for 5-6% of the sales price. Both parties involved in the deal split this cost: listing (Seller’s) and selling (buyer’s) agents.
If you have a good listing agent working for you to ensure a quick house sale in Orange County, CA, such a person will draft and execute a marketable plan for your property. Although the market will determine how much you sell your house, the listing agent will determine how many offers you receive. When next you find yourself thinking about the details of “how to sell my house fast for cash in Orange County, CA”, remember, cash offers need no real estate agent mediator.
Generally, sellers pay the real estate agent commission, so that’s an expense you should factor into your closing cost.
2. Possible Repairs
A buyer in a bid to prevent himself from disappointment such as discovering an expensive defect in the home after closing usually requires to have prospective houses inspected. The cost of a home inspection is a closing cost incurred by buyers, but it affects sellers too. Home inspection reveals specific defects or features that need repairs or replacement. Guess who will be responsible for the cost of such repairs? You guessed right, that’s you, the seller. Although, the cost can be negotiated, whoever pays and whatever amount is paid relies on the outcome of the negotiation between the buyer and seller. We buy houses in any condition in Orange County, CAand won’t ask you to make any repairs if you sell to us.
3. Title Insurance
Title insurance comes in handy for both the buyer and the seller: owner’s title insurance, and lender’s title insurance. However, the seller pays for the more expensive policy: the owner’s title insurance. On the other hand, the buyer pays extra for the premium, thereby receiving an extension of the policy’s coverage for the lender’s benefit.
As a general rule, the higher the sale price, the higher the cost incurred, as it responds to changes in sales price.
4. Escrow
Escrow fees are usually split between the buyer and seller. In Orange County, these parties pay their fees separately under the guise of “sub-escrow fees” in California. Sub-escrow is usually used in relation to previous property owned or similar real estate transactions completed. For instance, a seller uses the money from the sale of a property to pay off the current mortgage on the property incurred when he became the owner of the property. Escrow fees are usually determined by the company used in the completion of the deal and it varies from one to the other. With the margin of difference going unnoticed most times, escrow companies charge between $2-3 on a thousand of the sales price.
5. Property Transfer Tax
Jermain Coles said in Neighbours, “…somethings you can’t escape: Death, taxes, NRA.” This lyric is most likely inspired by Ben Franklin who said death and taxes are unavoidable in life. This statement holds true because whenever you transfer ownership of your property to another person, you incur a county tax. In fact, some cities, require you to pay a city tax as well.
The stipulated county transfer tax in California is $1.10 on each thousand of the sale prices. Although this figure can be as high as $4 or $5 per thousand in cities that add their city tax as well. The seller pays county tax, but be rest assured about the high cost of about $4-5 on each thousand because we don’t have any additional city transfer taxes anywhere! Need to sell my house ASAP in Orange County, CA, go ahead and do that without bothering about expensive property transfer tax.
We buy houses in Orange County CA, we can buy yours too, saving you from incurring extra closing costs on a property you should be cashing in from in the process. While there are a variety of costs associated with a home sale beyond the down payment and sales price, you can have a checklist to ensure all is done well. Each region has its customs but by selling a house in Orange County there is a lot to miss out on other than paying closing costs you are not responsible for via ignorance.
