What Are The Closing Costs When Selling A House In Orlando?

People buy houses, they hold it for some time, and then they sell it. That’s how it is sometimes. In Orlando alone, did you know there were about 260 homes sold in January 2025? That’s actually lower by a lot compared to January of the previous year. 

Anyway, if you’re planning on selling then you might have asked yourself, “what are the closing costs when selling a house in Orlando?” We’ll tell you all about it in this guide. 

Another thing you might be interested in is knowing the best time to sell a home – well, we got that one covered in our next article. 

Short Summary

• The largest closing cost is typically the real estate agent commission, usually split between the listing and buyer’s agents, and is negotiable.
• Sellers should expect title insurance and settlement fees that ensure a smooth property ownership transfer, including the owner’s title insurance policy, title search, attorney fees, and recording fees.
• Sellers must account for property transfer taxes and government fees like the Florida documentary stamp tax, county transfer taxes, and recording and lien search fees.
• Additional costs, such as home inspection repairs, mortgage payoff fees, prorated expenses, and marketing, can impact total closing costs and should be considered.

Real Estate Agent Commission Fees In Orlando

The most significant closing cost when selling a home is usually realtor commission fees. In Orlando, like much of the country, typical realtor commission rates range from 5-6% of the home’s sale price. This percentage is a significant factor when calculating your potential profit from the sale, so it’s important to understand how it works.

This commission is not just for one agent; it’s typically split between the listing agent, who represents you (the seller), and the buyer’s agent, who represents the person purchasing your home. The exact split can vary, but it’s usually close to a 50/50 division of the total commission. Knowing how this split works helps you understand where your money is going and why using quality real estate professionals is a valuable investment.

While the 5-6% range is typical, the competitive market in Orlando might allow some room for negotiating commission rates. If you’re selling a high-value property or believe you can handle some aspects of the sale yourself, it’s worth discussing a lower rate with potential real estate agents. However, remember that a lower commission might mean less comprehensive service or marketing efforts.

Besides the traditional percentage-based commission, there are alternative commission structures to consider. Some discount brokers offer lower commission rates but may provide fewer services. Others might offer a flat fee option, which could be beneficial for higher-priced homes. Weigh the pros and cons of each structure to determine what best fits your needs and the specifics of your property.

The real estate agent commission is paid out of the proceeds from the home’s sale at closing. This means you don’t need to come up with the cash upfront. However, it directly affects your net proceeds, which is the amount of money you walk away with after all closing costs are paid. Understanding this impact is crucial for setting realistic expectations and planning your next financial steps.

Title Insurance And Settlement Fees

Another key component of seller closing costs in Florida involves title insurance and settlement fees. These costs ensure a smooth and legal transfer of property ownership, protecting both you and the buyer from potential title defects or disputes. Understanding these fees can help you budget accurately for your home sale.

One significant expense is the owner’s title insurance policy. This policy protects the buyer (although sellers sometimes pay as a buyer incentive) from any claims against the property that might arise due to past ownership issues, such as unpaid liens or conflicting wills. The cost of the owner’s title insurance policy in Orange County varies depending on the home’s purchase price, but it’s a one-time fee paid at closing.

Before title insurance can be issued, a title search and examination must be conducted. This involves researching the property’s history to identify any potential issues with the title. These title service fees cover the cost of this research and examination, ensuring that the title is clear and marketable.

In many Florida real estate transactions, a settlement or closing attorney is involved to oversee the closing process. Their attorney fees cover the cost of reviewing documents, ensuring legal compliance, and facilitating the transfer of funds. While not always required, having a real estate attorney can provide peace of mind and protect your interests.

Document preparation charges are another component of settlement fees. These fees cover the cost of preparing all the necessary legal documents for transferring ownership, including the deed, affidavits, and other required forms. These fees ensure all paperwork is properly executed and legally sound.

Finally, recording fees are charged by the Orange County Clerk of Courts to record the transfer of ownership in the public records. These Florida recording fees ensure that the transfer is officially documented, providing legal proof of the new owner’s rights.

Orlando Property Transfer Taxes And Government Fees

When selling a house in Orlando, you’ll also encounter property transfer taxes and various government fees that contribute to your overall closing costs. These fees are mandated by the state and local governments to facilitate the transfer of real estate and maintain public records. It’s essential to factor these into your financial planning for the sale.

One of Florida’s primary transfer taxes is the documentary stamp tax on deeds. As of now, this tax is calculated at a rate of $0.70 per $100 of the home’s sale price. This means that for a home selling at Florida’s median home price, the documentary stamp tax can be a significant expense.

In addition to the state documentary stamp tax, there might be Orange County additional transfer taxes. The county, if applicable, levies these local taxes to generate revenue for specific local projects or services. Checking with the Orange County Clerk of Courts or a local real estate attorney can clarify whether any such taxes apply to your transaction.

Recording fees are charged for recording the deed and mortgage satisfaction with the Orange County Clerk of Courts. These fees ensure that the transfer of ownership is officially documented and that any previous mortgages are properly released from the property’s title. These fees are typically nominal but necessary for completing the transfer of legal ownership.

A municipal lien search is often conducted to identify any outstanding liens or code violations on the property. This search ensures that there are no hidden financial obligations attached to the property that could become the buyer’s responsibility. The municipal lien search fees cover the cost of this search and provide assurance to both the buyer and seller.

If the property is part of a Homeowners Association (HOA), you’ll likely need to obtain an HOA estoppel letter. This letter confirms the current status of HOA fees, assessments, and any outstanding violations. The HOA estoppel letter costs vary depending on the HOA but are a standard part of the closing process in communities governed by an HOA.

Other Costs

Beyond the major expenses, several other costs can affect your total closing costs when selling a house in Orlando. These costs can vary depending on the specifics of your sale and the condition of your property. Being prepared for these potential expenses can help you avoid surprises and manage your finances effectively.

Depending on the purchase agreement, you might be responsible for addressing issues identified during the home inspection. While not always required, offering to cover some or all of the home inspection and repair costs can make your property more attractive to buyers and facilitate a smoother sale. These costs can range from minor repairs to larger renovations, according to inspection results.

If you have an outstanding mortgage on the property, you’ll need to pay it off as part of the closing process. In addition to the principal and interest, there may be mortgage payoff and loan-related fees, such as prepayment penalties or reconveyance fees. Contact your bank or financial institution to obtain an accurate payoff statement and understand any associated fees.

Prorated expenses and utility adjustments are common closing costs that involve dividing expenses between the buyer and seller based on the date of closing. These typically include prorated property taxes, HOA fees, and utility bills. Sellers need to ensure they pay property taxes up to the date of closing, and any overpayment will be credited back to them. Ensuring these adjustments are accurately calculated is essential for a fair and transparent transaction.

To maximize your home’s appeal and attract potential buyers, you might incur marketing and staging expenses. These could include professional photography, online advertising, brochures, and staging services to showcase your home in the best possible light. While not mandatory, these investments can potentially lead to a faster sale and a higher home’s sale price.

Finally, there are several ways to reduce closing costs when selling in Orlando. Negotiating commission rates, exploring alternative commission structures, and carefully reviewing all closing documents can help you minimize expenses. Consulting with experienced real estate professionals can also provide valuable insights and strategies for reducing your overall costs.

Final Thoughts On Closing Costs In Florida

Selling a house in Orlando involves navigating various closing costs that can impact your net proceeds. From real estate agent commission fees and title insurance to property transfer taxes and other expenses like home inspection repairs and marketing, understanding these costs is crucial for a successful sale. Being aware of what sellers typically pay allows you to budget effectively, negotiate wisely, and explore strategies to minimize your expenses.

If you’re looking for a hassle-free way to sell your house quickly for cash, consider reaching out to Lifestyle Runners LLC. We offer a straightforward solution for homeowners seeking a fast house cash sale without the typical complexities and costs associated with traditional real estate transactions. Call or message us today to explore your options and receive a no-obligation offer!