Oh yes, but in the real world, there is work to be done!\u00a0 Besides the unexpected expenses that can arise, there are a few that you should carefully consider before you put your house up for sale. \u00a0Knowing your fixed expenses for selling your home<\/a> can help you plan for those unexpected ones that may come up throughout the transaction.<\/p>\n GET YOUR INSTANT HOME VALUE HERE<\/strong><\/span><\/p>\n So, congratulations for being proactive and doing research in regards to knowing your closing costs when you sell a home<\/a>.<\/p>\n Seller\u2019s closing costs vary depending upon what state your home is located.\u00a0 Some states like Florida have fees attached to the deed whereas Indiana does not have a tax the seller must pay.<\/p>\n Unlike buyer\u2019s closing costs, the fees a seller pays to close on a home are limited but can be high.<\/p>\n Here is a breakdown of closing costs for a home being sold in Florida. \u00a0In some areas of Florida, it may be customary for certain fees to be negotiated, however, most of these are fixed expenses and paid by the homeowner selling the house.<\/p>\n You May Be Interested in the Article: Preparing Your Home for FHA<\/strong><\/span><\/p>\n If you have a mortgage(s) they must be paid off at closing. Your mortgage<\/a> payoff not only includes the balance of what is owed but also interest which will be prorated to the day of closing. \u00a0I don’t really consider this a closing\u00a0costs,\u00a0because regardless of how you sell your home<\/a>, you have to pay the note off.<\/p>\n If you have a line of credit, that usually has to be paid off in addition to your primary mortgage. If the lender that provided you with the line of a credit has attached a lien to your property, that lien must be satisfied at the time of closing<\/p>\n In addition to paying off your mortgage, there will be a fee to overnight or wire the payoff to the lender(s). Depending\u00a0upon\u00a0how many mortgages you are paying off, you can expect to be charged between $50-$75 per payoff.<\/p>\n See the Article: 6 Mistakes Sellers Make Pricing Their Home<\/span><\/strong><\/p>\n Prior to closing on a home, a search of the public records must be done to look for outstanding liens,\u00a0judgements\u00a0and unsatisfied mortgages. This is to ensure that there are no claims made against the property. \u00a0The fees associated with a title examination run between $200-400<\/p>\n A chain of title is also performed during the title examination. \u00a0A chain of\u00a0title\u00a0looks back throughout the history of the property, from the current owner to the original owner.\u00a0 This is to verify that ownership was transferred correctly to each new owner.\u00a0 \u00a0A seller should be delivering a property to\u00a0new\u00a0buyer free of any liens and judgments.\u00a0 We call this a marketable title.<\/p>\n Title insurance<\/a> is issued after the examination and chain of title are performed. \u00a0This kind of insurance protects owners financially against any claims or defects in the title that may have been missed during the title examination. The cost of title insurance depends on the price of the home.<\/p>\n Who pays title insurance is usually negotiated between the buyer and seller.\u00a0 Depending on what county you are located in Florida, sometimes it is customary that the seller pays title insurance.\u00a0 Most counties like Dade, Broward, Manatee and Sarasota, the buyer pays title.\u00a0 However, this is a customary practice among real estate<\/a> agents in those locations to negotiate.<\/p>\n This is a fee that is charged by the title company as a cost of closing the transaction.\u00a0 This fee can vary between title companies depending upon where you are located.\u00a0 The average cost is $500-800.\u00a0 I have seen this fee split between the buyer and seller and I have seen the fee totally paid by the buyer. \u00a0\u00a0So, this may be an expense that you might pay.\u00a0 I would say, clarify this on your purchase agreement.\u00a0 Most regions, once again it comes down to local customs on who pays this fee.<\/p>\n Documentary stamp tax or also known as\u00a0excise\u00a0tax, imposed by the state of Florida is charged to the seller upon transfer of ownership.\u00a0 The amount you pay depends on how much you sold your home for and what county the home is located in.<\/p>\n The tax rate for homes sold in any\u00a0county\u00a0other than Miami-Dade is $.70 per $100.\u00a0 If your home is in Miami-Dade County then the tax is calculated at $.60 per $100. If the property in Miami-Dade is anything other than a single family home, the above tax rate includes a $.45 surtax per $100. \u00a0So, let\u2019s figure this out.\u00a0 If you sold your home for $300,000 in Manatee County, Florida you would be paying $1800 in stamp tax.<\/p>\n Property taxes in Florida are paid in arrears (1 year behind). \u00a0The bills are sent in November.\u00a0 That tax bill is for last year taxes.\u00a0 So, when you go to sell your home, you pay up until the time that you owned your home.\u00a0 For instance, if you are closing on the sale of your home on July 30th<\/sup>, you will be paying from January 1st to July 29th<\/sup>.\u00a0 The buyer is purchasing your home on July 30th<\/sup>\u00a0and is the rightful owner on that day, so they start to assume taxes.\u00a0 You will be crediting the buyer taxes that you didn\u2019t pay to the state from January to July 29th<\/sup>.\u00a0 That amount is credited to the buyer at closing.<\/p>\n Real Estate Commission is not fixed and yes, you can negotiate them. The commissions are split between two brokerage firms, the listing<\/a> brokerage firm (the brokerage firm that listed your home for sale<\/a>) and the brokerage firm that procures your buyer.<\/p>\n Let\u2019s look at how the commission is paid.\u00a0 Let\u2019s say you sell your home for $300,000 and the listing brokerage firm charges 6% commission.\u00a0 The total commission paid out is $18,000.\u00a0 That amount would typically be split equally among both firms (you will have to read your listing contract and make sure that it is specified as such).\u00a0 Each brokerage firm would collect $9,000 from your sale.\u00a0 That money is collected at the time your home closes.<\/p>\n You must pay the brokerage firms and not the agents directly.\u00a0 The brokerage firms split the payment with the agent(s) that are working your transaction.\u00a0 In the state of Florida, like most states, the brokerage firm has to collect the fees and then based upon the agreement that they have with their real estate agents<\/a>, pay them the agent\u2019s share of the commission.\u00a0\u00a0 So, your real estate agent<\/a> does not get to keep 100% of the commission collected, in most cases.<\/p>\n The commissions earned from a transaction go to pay for marketing expenses such as professional photography, just listed postcards, social media marketing<\/a>, and administration support.<\/p>\n Commissions are negotiable.\u00a0 You don\u2019t really just want to price shop for the lowest commission brokerage firm.\u00a0 You know that old saying, \u201cyou get what you pay for\u201d?\u00a0 That is true when it comes to brokerage companies.\u00a0 Not every real estate company<\/a> is the same.\u00a0 You should compare marketing plans, agent experience selling in your location and their past performance sales.<\/p>\n If your buyer is getting a mortgage, they may ask you to help them with their closing costs.\u00a0 This is purely a negotiated item.\u00a0 Most mortgages will allow the seller to pay a percentage of the buyer\u2019s closing costs.\u00a0 So, you may want to take this into consideration when figuring your costs of sale. \u00a0\u00a0Remember, it\u2019s all about your net, what you put in your pocket.\u00a0 A buyer may come to you with a full price\u00a0offer,\u00a0but ask for help with closing costs.\u00a0 So, knowing your expenses when you sell your home, will help you determine if there is room to negotiate closing costs.<\/p>\n Some sellers may offer a home warranty on their home.\u00a0 This can be a benefit to a seller if some of the major components of the home are past their useful life, such as the air conditioner or water heater.\u00a0 This is a totally optional expense but may separate you from other sellers in your marketplace and give you a competitive advantage.\u00a0 Depending on which company you choose and coverage, a one-year policy can run $375-$600<\/p>\n Some loans<\/a> require the seller to pay for the pest inspection. \u00a0For example, a VA loan currently requires the seller to pay for the pest inspection.\u00a0 A pest inspection usually runs between $100-$150.<\/p>\n As you can see, selling a home can be expensive and protecting your equity is a top priority. Knowing your expenses prepares you for unexpected events during the transaction as well as how much cash you will be getting back, perhaps to purchase another home.<\/p>\n With the assistance of Sandy Williams and her team at eXp Realty, you will more likely sell your house quickly and maximize your home\u2019s value.\u00a0 Put 20+ real estate sales experience in your corner.\u00a0 Sandy and her team have sold over 2,200 homes throughout Florida. To contact Sandy, call 305-962-5464 or email This email address is being protected from spambots. You need JavaScript enabled to view it.<\/span><\/p>\n \u00a0<\/p>\n<\/p><\/div>\n [ad_2]
Wouldn\u2019t be nice to just put your home up for sale, find a buyer that writes you a full price offer<\/a> and close quickly with no issues regarding the home inspection<\/a>, the appraisal or financing<\/a>?\t\t\n\t\t<\/p>\n![\"costs](\"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2023\/01\/32ccee75fe23be98c4df7b60fe734662.jpg?resize=300%2C200&ssl=1\")
<\/p>\nMortgage Payoff<\/h3>\n
Courier Fees<\/h3>\n
Seller’s Closing Costs: Title Examination<\/h3>\n
![\"\"](\"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2023\/01\/ef138980f21f88f1385214c585572313.jpg?resize=300%2C251&ssl=1\")
<\/p>\nTitle Insurance<\/h3>\n
Closing Fee<\/h3>\n
![\"\"](\"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2023\/01\/621d1e846c447397f835eaedb7d2e6a2.jpg?resize=300%2C249&ssl=1\")
<\/p>\nDocumentary Stamp Tax<\/h3>\n
Property Taxes<\/h3>\n
Real Estate Commissions<\/h3>\n
![\"\"](\"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2023\/01\/95750e1d3d67f9e323a319dfd606ae12.jpg?resize=300%2C200&ssl=1\")
Buyer\u2019s Closing Costs<\/h3>\nHome Warranty Fees<\/h3>\n
![\"\"](\"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2023\/01\/30fadade40e10b97b114557b0726a8a8.jpg?resize=300%2C267&ssl=1\")
Pest Inspections<\/h3>\nChoosing the Right Agent<\/h3>\n
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