Category: News and Information

Many people tend to focus too much on sale price when trying to determine their net profits from the sale of their home. They tend to overlook the long parade of commissions, taxes, fees, and other costs that could easily add up to 7 or 8% of a home’s sale price.

Homeowners that are selling an Orlando home for the first time can be especially clueless when it comes to the smaller details of a real estate transaction. After listing your home, your Orlando real estate agent should provide you with what’s called a “Seller’s estimated net proceeds worksheet”. This will give you an idea of all the different costs that will be deducted from your net proceeds when you close.

Although certain costs can vary from state to state, these are some of the main ones you will see along with their definitions.

Mortgage Balance:

This represents any mortgages attached to the property including first and second mortgages as any home equity lines of credit. The sum of these will be your mortgage payoff balance to be deducted from your proceeds.

Mortgage Payoff Fee:

In some cases, lenders may charge an administrative fee for paying off your loan.

Release of Liens Doc:

This will appear on the title search if you’ve ever had a judgment placed on your property by a contractor, a court of law, or a property tax lien. You must pay these off before you are legally able to close. Many times certain liens can be reduced or negotiated prior to closing.

Prepayment Penalty:

Some lenders will have a prepayment clause stating that if you pay off your loan early, you will be penalized. [as if they didn’t make enough money on you already]

State Recording Fees:

Any time you pay something off as it relates to your home, it needs to be recorded with the county in order to make it official. Title companies will pay these fees and pass on the cost to you at the closing.

Real Estate Commissions:

Typically, the real estate commissions for both the buyers and sellers agents, usually 5% or 6% will be split between the listing agent’s brokerage and the buyer’s agent’s brokerage. Each agent will then get paid by their own broker.

Notary Fee:

Most documents in a real estate transaction are required to be witnessed and notarized to make sure the docs are properly executed. The fee for this will also be deducted from the homeowner’s proceeds.

Escrow Fee:

When deposits and other sums of money are received by the title company for the purpose of funding the transaction, it all gets deposited into an escrow account to make sure it gets handled properly. The escrow fee is basically a charge for the service of accepting and disbursing the money to the individuals involved in the transaction.

Title Search:

Title companies perform a title search on properties to verify who the rightful homeowners are as well as look for any liens, judgments or anything else that may keep the transaction from closing. This is usually done at the very beginning of the transaction so that homeowners will have ample time to clear up any issues that may appear well before the closing.

Seller Concessions:

A seller concession could be where the seller of the property agrees to add a three percent concession for closing costs. This concession will then be added to the sales price to help pay for the buyers closing costs.

Home Repairs:

Any repairs that the seller agreed to make as part of the deal either through negotiations with the buyer or the lender.

The Home Warranty:

A seller will sometimes agree to pay the cost of a home warranty as an incentive for the buyer. This warranty offers a certain amount of protection for the new homeowners’ first year in the home.

If you’re looking to sell your Orlando home but aren’t sure exactly how much you’ll make on the sale, call listing specialist Jenny Zamora at 407-902-7750 for a free consultation or visit us at https://orlandorealtyconsultants.com/.

Whether you’re a buyer or a seller in the Orlando real estate market, you want to be the one to get the best deal and feel like you came out ahead in the negotiation. That’s human nature and perfectly normal, but how do you accomplish this goal?

I remember when I was studying for my real estate license, the instructor would repeatedly tell us…everything in real estate is negotiable. This is completely true and like snowflakes, every real estate transaction is unique in its own way. It’s normal for both buyer and seller to feel like they got the best of the transaction or at least that they got a fair deal. It’s typical for there to be some back and forth between the parties, some compromises, and even a bit of bluffing involved.

The key is to be in a strong bargaining position that will help you get the best possible deal in a transaction. From our own experience at ORC, there are five major determining factors that will help you win at the negotiating table.

1- Orlando Real Estate Market Conditions-

Usually, we experience a buyer or a seller’s market or even a sluggish market for both buyers and sellers. Of course, the best scenario for a buyer would be to buy in a buyer’s market and for a seller to sell in a seller’s market. Unfortunately, life doesn’t always work out that way.

There are cases where a homeowner living in a more desirable neighborhood could still sell for a decent price as opposed to other less desirable areas. And, if you’re a cash buyer that can close in 3 days, this may also give you some leverage with a seller that needs to sell quickly.

2- Who’s Got The Leverage?

If you’re desperate to sell your house because you can no longer afford it and the buyer knows it-then they will certainly have some leverage over you. However, if you have 4 or 5 buyers sending you multiple offers with each offer higher than the previous one, then you can just sit back and wait until the highest offer with the best terms emerges.

3- Pay Close Attention To The Details.

The sale price of a home is just the tip of the ice burg when it comes to negotiating. Seller concessions can make all the difference for a buyer that’s getting money back for improvements or repairs to the property. If you’re the buyer then this benefits you tremendously because it’s money that’s coming back to you. Of course, if you’re the seller, you would be much better off selling the house as-is and giving up nothing.

4-How Financing Comes Into Play.

To a homeowner, financing can play a huge role in how they view an offer. Buyers that aren’t yet pre-qualified by a lender will most likely not be allowed to submit an offer on a property. At least if a buyer has been pre-qualified by a major lender, they will have a good idea of what loan programs they will qualify for and how much of a loan they can afford. Having an offer from a buyer that has been pre-qualified presents much less of a risk to homeowners than someone who has yet to meet with a lender or mortgage broker.

The best scenario for a homeowner is to find a cash buyer that can close quickly and is not at the mercy of any lender to make the deal happen.

5- Hire An Experienced Orlando Realtor To Represent You.

Whether you’re the buyer or the seller in a real estate transaction, you would be wise to enlist the help of an experienced Orlando real estate agent. Sometimes buyers or sellers may try to buy or sell a home on their own thinking that they can save themselves a few bucks but the reality is that you could end up losing thousands on a transaction, especially if the other party has representation and you don’t.

If you’re looking to buy or sell a home in Orlando, feel free to call us for a free consultation. Over the years we’ve helped thousands of Orlando homeowners and home shoppers to find solutions to their real estate needs.

When you’re trying to sell a house in Orlando, one of the first crucial steps is to set a price. Setting the listing price can almost be considered an art form because you have to find the sweet spot between attracting strong offers and also selling your home for top dollar.

You’ve probably heard the term “fair market value” more than a few times especially if you’re working with an Orlando real estate agent. It’s important to know that fair market value and your listing price will not be the same number.

 Most realtors in Orlando will begin by creating a comparative market analysis on your home aka a CMA. This is a report that’s generated by researching other similar homes in your neighborhood and how much they are selling for as well homes that have sold recently.

 If you happen to be in a desirable Orlando neighborhood like Hunter’s Creek where the homes hold their value, then you’ll have an advantage. Realtors in Hunters Creek report that the average number of days on the market for a typical home in the area is now 47 days or less, which is really good compared to other Orlando neighborhoods.

Overpricing Your Home Can Backfire On You

Depending on your situation, it may be OK to go a little high on your asking price but don’t go overboard or your home could end up staying on the market longer than it should. While you work with your real estate agent in determining the listing price, keep in mind that some upgrades or improvements that you’ve made on your home don’t always translate to increased value.

 While some improvements like a swimming pool, fenced-in yard, or granite countertops can usually justify an increase in the asking price, other more personal improvements like tacky floors and purple ceilings can actually have a negative effect on the valuation of your home.

Leave Your Emotions Out Of It

Even though you absolutely love the hot pink walls in your daughter’s bedroom or the oversized chandelier in the hallway, you should think about what an interested buyer would like and leave yourself out of the equation. 

Working as an Orlando real estate agent since 2004 I can’t tell you how many times I’ve had the displeasure of telling a homeowner that they need to make a few changes to their home so that it would show better. No one likes being told that they have awful taste in colors and other decorative choices but at the end of the day, it’s my job as an Orlando listing agent to get the highest possible price for my client. It’s kind of like when your mom gave you horrible tasting medicine as a kid, “it’s for your own good”.

Generally speaking, the asking or listing price of an Orlando home is set a bit higher than the market value, typically between 1 and 3 percent above market value.

You should take into account that there will be some negotiating involved before reaching an agreement with your buyer. If you price your home too high, you’ll get a lot less interest and it will sit on the market much longer than it should.

Selling Fast Vs. Selling For Top Dollar

Depending on what your situation is, you have to decide whether it’s more important to sell your Orlando home for top dollar or get it sold fast. If the market isn’t doing so well in your neighborhood and you’re not in a rush to sell, you may want to consider staying for a while until the surrounding home values start creeping back up.

Selling As an Orlando Short Sale

If you need to sell your home for just enough to cover the mortgage and it’s worthless, then you may not have the luxury of setting your own price. In this scenario, you may have to consider doing a short sale on your home. This is when you try to get your lender to agree to let you sell your home at a discount on what the total payoff is so that you can get out of a bad situation.

When considering a short sale, it’s highly advisable to hire an Orlando short sale realtor. These are agents that specialize in doing short sales and nothing else. There is a lot more work involved with short sales as opposed to traditional listings and in this case, you don’t want to hire your nephew that just got his license last week.

Whether you need to sell your Orlando home for top dollar or you need to do a short sale, ORC has got you covered. Over the years we’ve helped thousands of Orlando homeowners find real solutions to their real estate needs. Call us at 407-902-7750 or visit https://orlandorealtyconsultants.com/ for a free consultation and I will sit down with you to discuss your options.