How Much are Typical Seller Closing Costs in Florida?
According to Zillow, the median home in FL sold for $233,700. Here’s how you can save approximately $7,011 in commissions on an average FL home by selling it For Sale By Owner on Houzeo.com
Congratulations! You’ve made it to the finish line. Closing on a home can be one of the most exciting moments as a seller, but it can also be stressful alone if you aren’t prepared. Florida is an expensive state when it comes to closing costs. Various regulations also make it a tedious state.
As a Houzeo For Sale By Owner (FSBO) seller, we expect you to go to your closing prepared. Our comprehensive Florida Home Seller Guide will help you accomplish exactly that.
In this section, we’ll discuss the key documents and expenses you need to be aware of when closing on a home in Florida.
What Are the Different Home Seller Closing Costs in Florida?
Here are the typical closing costs in Florida:
1.Lien Payoff: It’s the seller’s responsibility to clear any primary or secondary mortgages such as home equity loans. This includes the total payoff of all liens under the title (so no outstanding liens exist).
2. Real Estate Broker Commissions: It’s a fee for hiring a real estate professional to help you in the selling and closing process in marketing your property. Usually, there’s a 6% commission split negotiated between the buyer’s broker and also the agent’s broker. If you’re selling FSBO via Houzeo, congratulations… You’ve likely saved thousands by paying $0 in listing agent commission! Go on. Pop a bottle of the finest Champagne or Scotch. You deserve it.
3. Documentary Stamps (Doc Stamps or Transfer Tax): This is a fee often charged by the Walton County Recoded, where the estimated rate is 70 cents per $100 of the contract price. Although in Miami-Dade County, the estimated rate is 60 cents per $100 of the contract price.
4. Property Taxes: In Florida, the seller should pay their property taxes for the current year according to the number of days the home seller possesses the title.
5. Title Insurance: There are two types of title insurance: (1) one is typically paid for by the home buyer. (2) Owner’s title policy usually paid for by the home seller in Marion county, however, in other counties the buyer needs to pay for this fee. In other words, this is a protection fee against any outstanding encumbrances that may exist or appear (estimated $1220 on the median home value of $229,000).
7. Title Search: ($300-$600) This is a charged payment that reassures the buyer of the property that the home title is clear and sound once he/she owned it.
8. Estoppel Fee: Only applicable to a home who has homeowner’s association, this fee is charged in order for them to determine the status of your payoff and other dues ($250 for non-delinquent accounts, $150 for delinquent accounts, and an additional fee of $100 for expedited basis request).
9. Home Warranty Fees: To attract prospective buyers, this is an optional fee wherein the seller can willingly provide the buyer with a home warranty as an assurance for their home purchase. Also, the buyer can ask one as part of the property purchase (cost between $375 and $600 for a one-year warranty).
10. Seller Concessions: It may be referred to as a gift that a seller can offer to a buyer to lower the cost of buying a property. The seller’s money can then be used in closing costs, or if a buyer discovers a defect, the seller settles to cover the repair cost.
11. Closing Fees: Of course, the title company for their various services have payment (fees range from $3000 to $8000) in closing the real estate transaction. However, the price depends upon where your location is, with some areas that can cost much more and some could only cost less.
12. Additional Certificates: Some towns in Florida require additional certificates such as the following:
- Certificate of Occupancy: This is a verification that the property is suitable for occupancy and that it complies with all housing and building codes. The fee ranges from $50 to $100.
- Smoke Detector Certificate/Carbon Monoxide Certificate: These documents certify that the property is equipped with smoke and/or carbon monoxide detectors and that these detectors are functioning.
- WDO (Wood Destroying Organisms) Inspection. A property with VA loans may require termite inspection which the seller must pay.
How Should I Prepare for My Florida Home Closing?
Your closing agent will schedule a date for your closing. Here’s how to prepare for your closing day
- Review Your Closing Documents in Advance: Closing documents should generally be available to you in advance of the scheduled closing date. Review these documents at length and understand their provisions. Here are some key documents you’ll likely sign at closing:
- TILA RESPA Integrated Disclosure (TRID): Since October 3, 2015, the old process of filling the HUD-1 form, TILA disclosure (Truth in Lending Act), and a GFE (Good Faith Estimate) have been already replaced. Also known as the Know Before You Owe mortgage disclosure rule, the TRID Forms include a Closing Disclosure and Loan Estimate. If you apply for a mortgage, you’ll likely to receive a Loan Estimate that shows the details about the loan you requested which the lender must provide within three business days. While a Closing Disclosure is a five-page form that provides information about the mortgage loan, loan terms, estimated monthly payments, and of course, the total closing costs. The lender must give the form at least three business days before closing the mortgage loan. Remember, it’s best to hire an attorney who is already familiar with the new forms and details for the new process. So, they can explain to you thoroughly what you’re signing. Ensure there are no typos in your name, address, property address, bank info, and other details. Then review every amount and the totals to ensure there are no mathematical errors or inadvertent costs. You’ll be surprised how many times these documents have errors – this is one of the reasons our founder launched Houzeo.
- The Deed: Under Florida Law, this document is required before closing the deal. This document enables the legal transfer of title from the seller to the buyer. Read this document carefully, verifying all details including the legal description of the property, the deed book, deed book page, and the Property Identification Number (PIN), if any. In such a case, the seller should sign the deed and legally record it with the county public records.
- Statement of Closing Costs: This statement summarizes all the expenses and details involved in the transaction.
- Certificate of Title: It is a document that states you have the right to sell the property. This document should show a verified statement that there are (a) no outstanding contracts, (b) no liabilities against the property, (c) no pending issues against the sellers, (d) no violations of any laws or regulations involving the property.
2. Ask Questions: If this is your first time selling a property, schedule an appointment with the closing agent before the date of the closing. Prior to that appointment do your research and ask clarifying questions on anything you have doubts about.
3. Bring TWO Forms of Official ID: There will likely be a licensed notary involved who’ll require that you swear you are who you say you are. Take a valid driver’s license or passport for ID. Carry a secondary ID as well, just in case.
Now you’re ready! You might’ve heard horror stories of people being blindsided by high closing costs in Florida – but that’s often the result of not preparing and educating themselves ahead of time. If you are a Houzeo For Sale By Owner Seller in Florida, we want you to be one of the most educated home sellers out there. Next step, log on to Houzeo.com and list your home for sale by owner. You’ll be in full control of your listing, and save thousands in the process!
Note: This is only a quick guide for all the sellers in Florida. Despite most information readily available online, seeking expert advice helps progress the process of selling a home.
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