Unless you’re a savvy real estate agent or have sold a home before, it’s not always clear what costs are associated with selling your home in Florida. Here’s a quick overview;
First Things First
The biggest cost in selling your home, assuming you don’t own it outright, is paying off the remaining balance on your loan. Make sure you get with your lender to understand what you still owe before deciding how much to sell your home for, as it may impact your asking price.
Commissions Paid to a Florida Real Estate Agent
This could be one of the biggest costs, as its tied to the selling price of your home. One thing to remember is that commissions are not a fixed amount. They fluctuate from one company to the next, and are completely negotiable. Typically, commissions can be anywhere from 4% to 7%. make sure to find out exactly what the agent will be handling before deciding on an appropriate commission.
Fees Paid to a Florida Title Company
These fees can include some of the following things:
- Title search fees
- Lien search fees
- Settlement fees
- Filing fees
These fees should typically cost less than $500.
Most of the time, it’s customary for the seller to handle the cost associated with the buyer’s title insurance policy. An owner’s policy is then issued for the amount of the purchase price of the home and insures the ownership of the home for the benefit of the current owner for as long as they own the property.
Documentary Stamps on the Deed
This is the tax applied to the deed when selling a home. This comes straight from the state of Florida whenever home ownership is transfered. This stamp tax is .7% of the transfer of deed. In Florida, the default is for the closing costs to be covered by the seller.
Real Estate Property Taxes
Yet another cost the seller is responsible for are the Florida property taxes. As this typically is paid on an annual basis, the amount you pay will be prorated from the beginning of the year.
So when you’re ready to get sell your home, just make sure you consider the various costs. Or call us, that’s way easier!