There are a lot of things to consider before putting your home on the market.
There are plenty of factors that will change that influence the sale of your home. One thing, however, that is certain is that selling your home will cost you money.
Lucky for you the costs that come with selling real estate in Florida are pretty fixed. This means you can plan ahead. Calculate your costs and include them when talking with agents and with potential buyers. This can go a long way in helping you plan.
The commission is what you will pay a real estate agent or brokerage firm. It will also be will be one of the largest costs for selling real estate. Firms all charge different commissions. It could be a flat fee or a percentage of the purchasing price. Five to six percent of the sale price is a common commission for most brokerage firms. You can negotiate this, however.
Any outstanding balance on your mortgage will add to your costs. Talk to your lender beforehand about the actual payoff for your mortgage. The actual payoff is probably higher than the balance on your mortgage statement. This is due to:
This will also need to pay off any outstanding line of credit. Make sure to include those costs in your calculations when selling real estate.
Sellers in Florida are required to pay a documentary stamp tax whenever real estate ownership is transferred. The only exception is when the sales contract provides otherwise. The tax is based on the county the home is located in and the sale price. The tax is calculated at $.60 per $100 of sale price in Miami-Dade County. Any other county has the tax calculated at $.70 per $100 of sale price.
Let’s say you are selling your home in Pinellas County for $300,000. You, the seller, will end up paying $2,100 for the doc stamp tax.
Some things to be done before real estate can be transferred. A title agent will have a third party do a title search to confirm that you have no outstanding liens or encumbrances on the property. These would include:
Any of these will need to be taken care of before selling real estate. A title examination will typically cost around $200 to $400.
Property taxes in Florida are paid in arrears. This means that you receive a bill in November, and the bill is assessed for the previous year. House sales often include a prorated property tax credited to the buyer because of this.
The buyer may try to get you to help with closing costs if they are planning to get a mortgage. Mortgage lenders often allow the seller to pay a percentage of the buyer’s closing costs. Make sure you are up to date with your current costs when going over any additional costs. This way you will know how much room you have to negotiate with.
You might consider offering a home warranty if the house has some things that are a little worn out, like the:
This cost is completely optional. Keep in mind, however, that it might make your home more competitive in the market. A one year home warranty policy costs somewhere between $375 and $600.
Some mortgage lenders require the buyer to do a pest inspection before buying. Specific loans, like VA loans, will require the seller to pay for it. Estimate the inspection to cost between $100 and $150.
As closing gets near, there will be fees for drawing up the closing documents and representation during the closing process. These fees will be paid to a title agency or an attorney. Average closing costs for selling real estate are between $500 and $800.
If you are thinking about selling real estate in Florida, give us a call. We’d love to answer all of your home-selling questions.