Selling a home in Florida involves more than agreeing on a sale price. Sellers should also understand the closing costs that can reduce their final proceeds. While the exact expenses vary based on the property and other circumstances, several costs are commonly associated with selling real estate in Florida.
Common Closing Costs for Florida Sellers
Both buyers and sellers share the expense of closing costs at the end of a home sale, but they pay for different things. Some of the expenses a seller may be responsible for are included below. Note that the title related fees on this list vary by county (some may be defaulted to buyer), and of more importance is that title related fees are not written in stone, they are, in fact, negotiable within the purchase agreement:
- Real Estate Commissions: Commissions usually represent the largest portion of seller expenses. Realtors typically make 5-6% of the home purchase price. Selling without an agent, or shopping around for a lower rate can reduce seller closing costs.
- Documentary Stamp Tax: Florida imposes a tax on deeds transferring real estate to the new owner. In addition, individual counties may also charge their own transfer taxes, so check with your realtor and title company to see what taxes are owed.
- Owner’s Title Insurance: An owner’s title insurance policy protects the buyer in case an issue arises regarding previous ownership of a title. It will cover anything from clerical errors or full disputes over ownership.
- Title and Closing Fees: Depending on the transaction, sellers may pay certain title search, settlement, or administrative fees.
- Mortgage Payoff: Any outstanding mortgage balance must be paid from the seller’s proceeds at closing. There may also be lender-related payoff or recording fees.
- Property Taxes and Assessments: Property taxes, association dues, and certain assessments may need to be prorated or paid by the closing date.
Estimating Your Seller Closing Costs
Seller closing costs vary but will typically be in the range of 7-8% of the home sale price including real estate commissions (of 3-6%). Before closing, sellers should receive a detailed settlement statement showing the anticipated sale proceeds and deductions. Reviewing this information ahead of time can help identify unexpected expenses and provide a clearer picture of the amount the seller will receive.
A real estate attorney can be an invaluable asset throughout the process. They will review the purchase contract, explain the seller’s financial obligations, address title concerns, and help ensure the closing documents accurately reflect the transaction. Planning for closing costs before putting your property on the market can help you make informed decisions and avoid unpleasant surprises at closing.
When choosing The Law Office of Donna Hearne-Gousse, P.A. for your closing, title, and escrow needs, you’ll enjoy all the benefits associated with an attorney-based title agency at similar, and in many cases, lower costs than a standard title company will charge.
The Law Office of Donna Hearne-Gousse
(561) 582-5670