The Costs of Selling a Florida Home
Are you considering selling a Florida home? Then you need to understand how much money it will cost to do so. Here are the usual fees for selling a Florida home.
Commission
Some agents and brokers do work on a flat fee basis, but a majority of them work on a commission. The commission will be based on a percentage of the sale price of the home. The market commission in most of the country is 6%, but it might be negotiable. Some sellers might even add a bonus as a way to generate more traffic. The commission is the largest cost of selling a Florida home.
You have to remember that your agent or broker will probably split it with the buyer’s agent. Agents also have quite a bit of overhead and won’t be paid unless your property sells. Plus, agents understand the market, have the right contacts, understand marketing, and can help you get your home sold quickly.
Mortgage Payoff
Go ahead and give your lender a call so you can get your actual payoff. It may vary from your monthly mortgage statement. You might be subject to a pre-payment penalty, or other fees, if your mortgage is still rather new.
Doc Stamp Tax
This is the transfer tax paid by the seller. The rate is about $77 for every $1000 in the sale price. To calculate the tax for selling a home in Florida, multiply the purchase price by .007.
Lien Search
A third party, hired by the title agent, takes care of any outstanding liens on the property, including the mortgage. It could also include:
- Mechanics liens for unpaid repairs
- Code violations
- Utility liens
This fee tends to be between $200 and $300.
Title and Escrow Charges
The title agent charges this fee for drawing up the closing documents and representing the seller during the closing process.
Title Insurance
The person in charge of paying the title insurance varies depending on the county. In Broward County, for instance, the buyer typically picks the title company and pays the title insurance. In Palm Beach and some other counties, however, it is the opposite. The seller chooses the title company and pays the title insurance. The typical rate for title insurance is 0.55%
Property Taxes
Your pro-rated property taxes are usually credited to the buyer of your home. The buyer pays the property taxes for the entire year when they come due. You pay them the amount for the portion of the year you still lived there. For example, let’s say your yearly taxes are $4000 and closing took place at the beginning of April. You would credit the buyer about $1000 at closing. Then, they pay the full amount at the end of the year.
Miscellaneous
There are many small charges that can accumulate and are difficult to estimate when selling a Florida home, for things like:
- Making wire transfers
- Estoppel fees
- Courier services
You should estimate several hundred dollars in miscellaneous fees.
Please contact us for any questions about the costs associated with selling a Florida home. We would be happy to help you understand the home selling process.