Orange County Seller’s Closing Costs
When you selling your home or condominium in Orange County, California, there are several selling closing costs associated with the sale. And many different parties involved in each real estate transaction. Learn about who is involved in the sale of your property, the expenses and an easy way to figure out your costs.
Who Are The Players When it Comes to Seller Closing Costs in Orange County
- The Seller’s real estate agent, when representing you, is the listing agent. Their goal is to get you the highest and best price for your home in the shortest amount of time on the market.
- The Buyer’s real estate agent represents the buyer and seeks to assist the buyer to get the LOWEST price for the home
- Escrow Company and Escrow Officer—an independent, neutral third party company who carries out the agreements that the buyer and seller made during the offer for real estate. They are a licensed, bonded and insured escrow/settlement agent. To learn more, go to “What is an Escrow Company”…
- Lender/Bank—if a loan is involved. They provide financing options to the buyer. Most of the time, they will be sending out an appraiser to establish the current market for the bank to loan against the home.
- Title Insurance Company —A company which issues insurance regarding the title of real property. So, when the new owner takes purchases the home, the house is not encumbered with debts and issues that belong to the past seller or sellers.
- Documentation Preparation Fee for transferring the deed
- Escrow Fees – your escrow officer is the key to a smooth transaction. Since you are the seller, your listing agent should know several reliable escrow companies in your area to assist with the closing of the sale. Reliable is the key when it comes to escrow companies.
- Notary Fees – usually runs about $10 to $25 or more depending on the document that needs to be notarized
- Loan Fees – possible fees required by the buyer’s lender if the buyer buys with an FHA or VA loan. This amount can vary.
- Buyer may ask the seller to pay for their closing costs in the purchase contract. Usually the buyer asks for up to 3% of the purchase price for closing costs to be paid by the seller. You as the seller can negotiate this item.
- Demand Fee – your bank that has your loan now may charge a fee for documents so your loan can be paid off through the sale in escrow.
- Real Estate Commissions – a good agent can help you get the highest price that the market will bear for your home. The typical real estate commission is about 6% of the sales price. The commission is split between the buyer and seller’s real estate companies. The fee is negotiable. Remember, you get what you pay for…
- Termite Work – in California, there are two sections to the Termite Report; Section 1 covers infestation of termites and Section 2 covers future items that may happen. When an offer is written in 2017 and beyond, the buyer has the option to ask for a termite report or have a termite inspection during the 17-day window of time for inspections. If they have one, they may ask the seller to pay for work to be done. The seller is not obligated to perform the work or pay for this. If you are the seller, then you can accept the request, counter it or just say no.
- Natural Hazard Disclosure Report discloses to the buyer if the property is in an earthquake zone, fire hazard, etc. You as the seller need to disclose this to the buyer. You can fill out the form yourself or have a third party company take the liability of it and create a report for the buyer. Cost is about $99 to $139. I found a company called MyNHD.com which is lower in price and produces a good report.
- Environmental Disclosure Report discloses if your property has an oil well on it or had one in the past…along with other issues.
- Title Insurance — provides coverage for certain losses in the title prior to your ownership. It protects against claims resulting from various defects such as prior fraud or forgery that might go undetected until after closing.
- Tax Prorations – if any for unpaid taxes including any bonds or special assessments
- Any unpaid Homeowner’s Association (HOA) Dues (if a condo, town-home or your property is in a planned unit development).
- Home Warranty plans – after you have moved out, the home warranty company’s policy will covered service problems – offering you additional after-sale liability protection. They range from $255 to $500 or depending on what they cover. We can review the different plans before you decide what to do.
- Any City Transfer or County Tax
- Document Transfer Tax
- At the end of the sale, you receive a closing statement that itemizes all of the expenses.
- Typically, figure about 8% of the sales price for your closing costs with Realtor commissions factored in when your are selling. Review more helpful Home Selling Tips
If You Sold Your Home at the Current Market Value, How Much Would You Net?
Simply fill out the information about your property and we will send you an estimate of what your closing costs would be in California along with the current market value of your home:
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