What are the typical closing costs for home sellers in Florida?
Here’s a list of the customary closing costs paid by Sellers in Florida real estate transactions.
1. Real Estate Commissions: 3% to the Listing Agent and 3% to the Buyer’s Agent or Selling Agent. Sometimes the listing agent is the same as the buyer’s agent.
Some sellers have the misconception that the commissions they pay are the largest expense when selling their homes. It’s true that the closing statement will show this figure as being the highest expense, however, not enlisting the services of a professional will often be more costly to a home seller than paying a fair and well earned commission for the expertise of a licensed and board certified Realtor®.
Owners who try to sell their homes without a listing agent often find themselves underwhelmed by the offers they receive and overwhelmed by the amount of work and time it takes to get a buyer to the closing table.
Even if an owner lists their home in the MLS via a flat fee service provider, many cooperating agents will elect not to show the home to their buyers for fear of having to work with a seller who is not qualified to complete a transaction.
The real estate commission earned by agents is well deserved and having a great listing agent is not only empowering and convenient, it results in higher profits to the home seller with much fewer days on the market.
2. Documentary Stamps on the Deed: The tax rate is $.70 per $100 (or portion thereof) of the total consideration paid, given, or to be paid or given, for the transfer.
Miami-Dade County is an exception, where the rate is $.60 per $100 of consideration (or portion thereof) when the property is a single-family dwelling.
If the Miami-Dade property is anything other than a single-family dwelling, the tax rate is $.60 plus $.45 surtax per $100 of consideration (or portion thereof).
You can also see this quick and handy reference to calculate doc stamps costs in South Florida: http://dor.myflorida.com/dor/tips/pdf/tip08b04-01.pdf
3. Title Associated Fees: These fees depend on the title company that is selected during the contract negotiation. Many title companies have closing cost calculators that auto fill in their own title fees.
For example, Independence Title has an excellent closing cost calculator and it is available both as a web application or a iPhone or Android app.
You can go here for their calculator: http://www.titlerate.com/calculator.html
You can also ask your preferred title company if they offer a closing cost calculator or if they can provide a list of the fees they would charge.
4. Owner’s Title Insurance Policy: If the seller selects the closing agent they are often also electing to pay portions of the new owner’s title policy. If the buyer selects the closing agent then the buyer also pays for their own owner’s title policy.
5. Seller Concessions: If during contract negotiation the seller has agreed to pay portions of the buyers’ closing costs the seller is responsible for the amount set forth in the contract/s they signed.
Sometimes concessions are negotiated at a flat rate, for instance $5,000, and sometimes it is negotiated as a percentage. Lenders have their own guidelines for maximum concessions allowed but a good rule of thumb is a maximum of 6% for Conventional loans and 3% for FHA loans.
6. Property Taxes: The seller is responsible for the property taxes accrued from January 1st until day before the transaction closes.
You Can Also Do A Seller’s Net Sheet
A Seller’s net sheet will give you a much more accurate picture of your closing costs as a home seller. Feel free to give me a ring to discuss the sale of your home and we can complete the Seller’s Net Sheet together.