You may be wondering, “What are seller closing costs in Florida?” Let’s take a look at what closing costs are and what you can expect as you sell your Florida home.
🤔 What are closing costs?
Closing costs is a phrase used for the combined fees associated with the sale of a home. The closing costs include title searches, document preparation fees, and other administrative fees.
🙋 Who pays closing costs in Florida?
The home buyer and home seller share the responsibility of paying closing costs, depending on services needed during the home selling process. The sale’s contract defines the specifics of who is responsible for each part of the closing costs.
🗓️ When are closing costs paid?
At the end of the home selling process, an escrow agent processes the money related to the transaction. The seller pays the closing costs during this time.
SUGGESTED: Selling Your First Home
Keep in mind that closing costs that you pay are coming out before you receive the money from the sale of your home. For this reason, it’s a good idea to have a strategic plan when pricing your home and going into offer negotiations. We can help with this part!
📱 How can a real estate agent help?
We want to help you understand the home selling process and feel comfortable with real estate terms. We’re here to answer any questions you have about selling your home and closing costs.
💵 What are seller closing costs in Florida?
As a seller, expect to cover 1 – 3 percent of the closing costs unless otherwise stated in the sale’s contract. Keep in mind that you are required to pay the commission costs for the real estate agents involved in the transaction, but the broker may have an administrative fee due to state requirements on keeping records.
👉 A title search validates that you are the legal owner of the property and have a right to sell that property without other claims being present. You may be asked to pay a title insurance premium if that’s part of your sale’s contract.
👉 If there is an existing mortgage loan for the home, the administrative fees associated with the repayment of that loan are closing costs. The person managing the closing process charges a fee for those services.
👉 Other administrative fees may include those for preparation of documents, deed stamps, and recording of necessary paperwork. If there are fees from your current homeowner’s association or tax obligations, you’ll pay those at closing.
📌 Closing Cost Estimates
Here is a list of fees you may be required to pay as a seller. All amounts are estimations and are not set in stone or guaranteed numbers. They are provided to give you a general idea of what to expect.
- Broker Fees: 6% of the sale price
- Title Search/Insurance: $170 – $400
- Tax Search: $250 – $450
- Taxes: Prorated according to the date of sale
- Recording: $8 – $10 per page
- Deed Doc Stamps: varies by county
💲 What are the buyer’s closing costs?
- The lender may require the land to be surveyed to validate property lines.
- A professional appraiser determines the value of the home.
- Different inspectors investigate things like the roof, structure, and systems.
- Inspection for termites and other pests may be needed.
- The premium on the homeowner’s insurance policy may also include several months of payments.
- Other costs include the mortgage loan fee, documentary stamps, taxes, recording fees, administrative fees, and closing fees.
✨ What is a seller concession?
There are times when an offer comes in with a request that the seller pays the closing costs, in their entirety or part, as part of the deal. This concession may make it easier for the buyer to complete the purchase and close on the sale promptly.
Depending on your circumstances, current real estate market trends, and the buyer’s offer, agreeing to a seller concession could make sense. It’s an excellent idea to discuss the matter entirely with your real estate agent before deciding.
📋 Conclusion
As a home seller, you’re required to pay the commission for real estate agents managing the sale of your home and additional fees that are known as closing costs. No one person determines the amount of the closing costs because they are a total of all fees associated with the services needed during the transaction.
SUGGESTED: How do I sell my house?
The buyer and the seller share a responsibility for paying closing costs unless otherwise stated in the sale contract. As the seller, you may choose to pay all or part of the closing costs as a concession that helps the buyer.
