Selling a home is a multifaceted process that involves various steps, each accompanied by its own set of costs. If you’re gearing up to sell your property in Cincinnati Ohio, it’s crucial to have a clear understanding of the typical closing costs you may encounter along the way. From agent commissions to transfer taxes, these expenses can impact your bottom line and should be factored into your overall selling strategy.
In this comprehensive guide, we’ll delve into the typical closing costs for sellers in Cincinnati Ohio, providing you with the knowledge needed to navigate the selling process with confidence.
Typical Closing Costs in Ohio
1. Real Estate Agent Commissions
Estimated Cost: 5% to 6% of the final sale price – 0% if you sell to PropertyPal
One of the most significant closing costs for sellers in Ohio is the commission paid to real estate agents involved in the transaction. Typically, this commission is split between the listing agent (representing the seller) and the buyer’s agent. In Ohio, the standard commission rate usually falls within the range of 5% to 6% of the final sale price. It’s essential to discuss and negotiate the commission structure with your chosen real estate agent before proceeding with the sale.
2. Property Transfer Taxes
Estimated Cost: Varies by county (typically calculated as a percentage of the sales price)
In Ohio, sellers are responsible for paying property transfer taxes as part of the closing costs. These taxes are based on the final sale price of the property and are typically calculated as a percentage of the sales price. The exact rate may vary depending on the county in which the property is located. It’s essential to consult with your real estate agent or a local tax professional to determine the specific transfer tax rate applicable to your sale.
3. Title Insurance
Estimated Cost: Varies based on property value and title insurance company
Title insurance is a crucial component of the closing process that protects both the buyer and the lender against any defects in the property’s title. In Ohio, sellers are typically responsible for purchasing an owner’s title insurance policy to ensure that the title is clear and free of any liens or encumbrances. The cost of title insurance can vary depending on the property’s value and the title insurance company selected. Sellers may also be required to pay for a lender’s title insurance policy to protect the buyer’s mortgage lender.
4. Attorney Fees
Estimated Cost: Varies depending on the complexity of the transaction and services provided
While not always required, hiring a real estate attorney to oversee the closing process can provide sellers with added peace of mind and legal protection. Attorney fees can vary depending on the complexity of the transaction and the services provided. Sellers should consult with their attorney to discuss fees and ensure that all necessary legal documents are properly prepared and executed.
5. Prorated Property Taxes
Estimated Cost: Proportionate to the number of days owned during the tax year
Sellers in Ohio are responsible for paying property taxes up to the date of closing. During the closing process, property taxes are typically prorated between the buyer and the seller based on the number of days each party owns the property during the tax year. Sellers should be prepared to cover their portion of property taxes accrued up to the closing date.
6. Home Warranty
Estimated Cost: Varies depending on coverage options and provider
Offering a home warranty to the buyer is a common practice in real estate transactions and can help alleviate concerns about potential post-sale issues with the property’s systems and appliances. While not mandatory, sellers may choose to purchase a home warranty as part of the closing process. The cost of a home warranty can vary depending on the coverage options selected and the provider chosen.
Conclusion
Selling a home in Ohio involves various closing costs that sellers should be aware of and prepared for. From real estate agent commissions to property transfer taxes, title insurance, attorney fees, prorated property taxes, and home warranties, these expenses can impact the overall profitability of the sale.
By understanding the typical closing costs involved, sellers can navigate the closing process with confidence and achieve a successful outcome.
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