Real estate values have surged in the wake of the pandemic, particularly in highly desirable areas like Palm Beach County in Florida. If you own real estate at The Club at Ibis and are now considering putting the property on the market, you can expect great profit, especially when you use the right strategy.
Keep in mind, however, that selling a home also comes with certain expenses. In preparing your home for sale, it also helps to know how much you may have to shell out in order to close a sale.
Here’s a look at some numbers to crunch.
Real estate agent fees
Upon closing, Realtors usually charge the seller a commission fee of 6% of the sale price. If there’s a separate buyer’s agent, the fee is typically split between the two agents. While this may seem like a considerable amount, consider that working with a Realtor gives you significant benefits that can translate into a higher profit. A real estate agent would know how to market the property to the right sellers and come up with the right price for the home. They can offer solutions to help you sell the property fast and negotiate strongly on your behalf.
Repair and renovation costs
Most buyers are drawn to properties that are move in ready and require little repair and renovation. Moreover, a home with updated features typically command a better price on the market. Home improvements and repairs may set you back hundreds or even thousands of dollars, depending on the work that needs to be done. However, the payback comes in the form of a faster sale and higher value.
Keep in mind, though, that not all home improvements yield a good ROI. This is why it’s important to crunch the numbers with your contractor and talk to your Realtor to determine where you should put your money.
Staging
Professional home staging in Florida can cost you anywhere from $2,000 to over $6,000, depending on the size of your property. While this may seem like a hefty price, home staging is a must if you want to make your Ibis real estate property stand out. Several studies have shown that staged homes sell faster and at a higher price. By highlighting its best features, staging can make a home more appealing to buyers, increasing the chances of a quick and profitable sale.
To save on costs, consider going the DIY route with the help and guidance of your Realtor. Talk to your agent about the pros and cons of DIY and professional home staging to determine which solution works best for you.
Closing Costs
Closing costs are fees paid by both the buyer and the seller before the transfer of ownership. Buyers usually have more fees to pay for closing at around 1% – 7% of the sale price. As the seller, you may have to pay around 1% – 3% of the sale price, in addition to the agent’s commission fee.
Who pays for the various closing costs may be negotiated between the buyer and the seller. Typically, however, the seller shoulders the following costs:
- Title insurance policy
While this may be negotiated with the buyer, the seller usually pays for a title insurance policy in Florida. Title insurance is required by the lender to ensure the property’s title is clean and the lender is financially protected in case problems or unexpected disputes regarding the title arise.
- Attorney’s fees, if applicable
Hiring an attorney is not mandatory, but you may need the guidance of one in drafting and reviewing contracts, determining contingencies, and resolving any disputes with the buyer. A law firm may also act as the closing agent, and if this is the case, they will be charging corresponding fees for their services.
- Transfer taxes and recording fees
Transfer taxes and recording fees are paid as part of the process of transferring the land title. In Palm Beach County, the rate for transfer taxes – also called documentary stamp taxes – and recording fees is $0.70 for every $100 paid on the property.
- Loan payoff fee, if applicable
If there’s an existing mortgage for your home, the remaining amount on the loan will be paid off using the proceeds of the sale. In addition to the loan balance, you also need to pay interest fees. Moreover, depending on your mortgage terms and conditions, the lender may charge a prepayment fee for an early loan settlement.
- Outstanding amounts of the property
Other necessary costs like unpaid home association dues and prorated property taxes will fall under outstanding amounts. As the seller, you must be ready to settle all related dues to ensure a clear transfer of ownership.
Interested in selling your home at Palm Beach County? Get in touch with The Telchin Group. With their expertise and experience, the team can guide you through every step of the selling process and help you sell your home fast and at the highest possible price.
Call The Techin Group at 561.301.029 or send an email to eric(at)thetelchingroup(dotted)com.