Buying a home is just as exciting and as important as selling the home. Most homebuyers save up a lot of money to purchase their homes in the beautiful and well sought after Sunshine State. Although sellers can bring in a considerable amount of money selling their homes, some costs are also associated with selling the home.
If you are looking for more information on how much closing costs are for the seller in Florida, you came to the right place! We will go over the seller closing costs in Florida and who you can contact for the best valuation of your home.
What Are Closing Costs?
Closing costs are the final steps needed to take to complete the sale of your home. Closing costs are the final transfers of money traded to each party involved. These costs are outlined in the purchase agreement.
Seller Closing Costs in Florida
The most significant fee that you are responsible for is the commission for the real estate agent. Depending on your home’s price and location, the commission cost varies between 5% to 10% of the final sale price.
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This price also can vary based on if there was even a real estate agent involved. If there is no real estate involved in the sale, there is no need for the commission sale.
When selling a Florida home, you must have any outstanding mortgage balances paid in full before closing; if there is a lien attached to the house, that also must be paid off before closing. Your mortgage payoff needs careful calculation, including the balance you owe as well as any prorated interest.
If you have a homeowner’s association, HOA, affiliated with the property of your home, you have to pay any associated HOA fees. The HOA estoppel is a letter that shows how much you owe the homeowners association.
It is essential to have this certified letter to show that you do not owe the HOA any money because they can put a lien on your property for any past due payments. The title company will also confirm that you are in good standing before giving a clear home title. This letter costs between $200 and $500.
Before you can complete the process of selling a home, either you or the seller must conduct a public record search to ensure there are no outstanding liens, judgments, or other claims against your property. Title examinations can run you a few hundred dollars.
You may want to purchase title insurance to protect yourself from any future claims or defects identified in the title after the sale. The cost of this insurance varies by your location so make sure to compare rates.
It is crucial to have your house inspected for pests during the home selling process. Pest inspections may be a requirement depending on the buyer’s loan and the location of your house. Sellers are typically held responsible for the inspection cost, which can run between $150 to $300.
Property taxes in Florida are prorated before the current year. For example, if your closing date is September 25th, you will need to pay any outstanding property taxes from January 1st to September 24th. The seller has the responsibility to pay property taxes for every day that they own the home up until the date of closing.
Documentary Stamp Tax
Real estate closing costs include the Florida state tax, also known as the excise tax. The seller pays this tax upon the transfer of the homeownership to the buyer. This amount varies based on your county and the final sale price of your home.
The average cost for documentary stamp tax is about seven percent of your home’s final sale price. It is also essential to consider that your county or city may also charge their own transfer taxes. Ensure to double-check that information with your title company to see what taxes you owe.
Who Pays Closing Costs in Florida?
The buyer can pay the closing cost of the home, or the seller can as well. These costs can run between a few hundred dollars to a few thousand, depending on the price of the house. It is important to outline who will pay the closing costs in the purchase agreement.
Hiring a professional to appraise your home and estimate the market value of your home can between $375 and $500. The buyer will take the burden of appraising the home.
The mortgage lender that the buyer uses typically charges an origination fee for their loan. These costs vary and are paid by the buyer.
Florida counties require a fee for registering the sale of the property. This fee also covers the registration of the transferred property.
Specific lenders may charge a fee to check the credit history and current credit score of the potential buyer. The buyer holds responsibility for these fees.
The responsibility to inspect the home before moving in falls on the buyer. The home inspection reveals any significant issues with the house. The inspector will inform you and the buyer if any foundational or structural issues or damages need to addressing.
Average Closing Costs in Florida
The average seller closing costs in Florida tend to run between about 5% to 10% with an average of 5.8%. As mentioned earlier, the most significant cost that the seller bears is the real estate commission, which averages around 6% of the total sale. If you are looking to save on the real estate commission, you can hire a transaction broker.
Should I Pay the Closing Costs?
While it may seem like it isn’t a good idea to bear that cost, it may actually work in your favor to pay the buyer’s closing costs. Buyers easily feel the financial strain because of all the money they have to save for the down payment and other important transactions.
When you help the buyer out with their closing costs, it can relieve some financial pressures off of them. Helping them with the closing costs also ensures that your home’s sale goes smoothly and you can close faster.
Using an iBuyer
If you are looking for a way to cut costs when selling your home, you have the option to use an iBuyer. An iBuyer is a company that uses cutting-edge technology to give you an offer on your home. This method is more accessible, more straightforward, and more convenient than traditional home selling.
Why Use an iBuyer
Now that you know how much are closing costs for sellers in Florida, you know that those costs on your end can be pretty steep. iBuyers offer you an all-cash price for your home, and if you accept it, they bear the responsibility for those costs. An iBuyer will also take care of owning, marketing, and reselling your home on your behalf.
iBuyer Valuation vs. Market Analysis
Traditionally, the value of your home is calculated by looking at similar homes nearby that other homebuyers recently purchased. The market analysis for the traditional home buying process is not always accurate because no two homes are the same. It may become difficult to properly evaluate a home because of all the adjustments needed for your home’s features.
This is where iBuyers shine. iBuyers have technology that can quickly compute the proper valuation of your home, and it can do it pretty fast.
Most iBuyers can create an offer for you within 48 hours after you input your information. This automated valuation model is fantastic for those looking to get an up-to-date and accurate value of their home.
Selling to an iBuyer
Selling your home to an iBuyer is very simple. All you have to do is request an offer by sending in the information about your house. If your home meets the company’s criteria, they will send you a competitive, all-cash offer. There is no obligation to accept this offer.
Accepting The Offer
Most iBuyer companies will give you about five days to make your decision on their offer. The offer will break down the value of your home, their fees and closing costs, and your estimated proceeds after all the applicable deductions.
Once you accept the offer, the company will come to appraise the home to verify its condition. If any major repairs need addressing, they will deduct that from your final proceeds, so you do not have to pay anything out of pocket.
Closing and Moving
Once any applicable repairs are complete, you choose your closing date. You can either choose to move within 14 to 60 days. Once you close, you receive your payment within a matter of days.
Seller Closing Costs in Florida
Now that you know about the seller closing costs in Florida, it is time to make your decision! The traditional way of selling a home is easy to follow and use, but it can force you into spending more money than you would like.
Using an iBuyer to sell your home may be a great idea to consider if you are looking to cut down on time and out-of-pocket expenses. To learn more about the iBuyer process, submit your address now! We can send you a quick and obligation-free quote for your home.