As hurricane season looms upon us in Florida, it's crucial to take proactive measures to ensure the safety of your home and your family. Lasting from June to November, this season demands
Closing Costs in Florida: What Sellers Need To Know
Dated: April 4 2022
Closing costs for sellers; let's face it — they exist and impact your bottom line. As a home seller, you need to know the costs of selling your home, and it's crucial to factor closing costs into your pricing strategy, including listing for the optimal sales price.
Selling a home can be stressful, but the licensed real estate agents at Curri Properties can help. If you're thinking about selling your home in Brevard County, keep reading to learn more about what closing costs to look out for and how you can save money.
If you have an outstanding mortgage on your home, it must be paid in full during closing. If you're not sure how much you owe on your mortgage, it's essential to find out before listing your home. The mortgage payoff should include the remaining balance, including prorated interest to the day of closing. In addition, if you have a line of credit attached to a lien on the property, you must also settle the lien. Some mortgages include an early settlement fee, so be sure to check on this also.
In Florida, property taxes are paid one year in arrears. This means that when you sell a home, you're responsible for paying property taxes for the house until closing. For example, if you sell your home on August 1st, you're still responsible for the outstanding property taxes from January 1st to August 31st. Outstanding property taxes are included at closing and typically deducted from the sales proceeds.
Before you can complete the transfer of a home, there must be a title search conducted. A title search uses public records to ensure that no outstanding liens, mortgages, judgments, or other claims remain against the property. The seller typically covers the cost of a title search; however, this is a negotiable cost.
Sellers must purchase title insurance to protect themselves against any future claims or defects identified in the title after closing.
The Florida Department of Financial Services promulgates title insurance in Florida in conjunction with title underwriters in the state. The 2022 promulgated rates for title insurance in Florida are as follows:
- $5.75 per $1000 up to $100,000 of liability
- An additional $5.00 per $1000 between $100,000 to $1,000,000 of liability
- An additional $2.50 per $1000 between $1,000,000 to $5,000,000 of liability
- An additional $2.25 per $1000 between $5,000,000 to $10,000,000 of liability
- An additional $2.00 per $1000 over $10,000,000 of liability
Documentary stamp tax
The state of Florida has what's known as "doc stamp tax." Documentary stamp tax is a tax the seller pays upon transferring their property to the buyer. The rate of doc stamp varies between counties and is dependent on the final sales price. In all Florida counties except Miami-Dade, the tax rate imposed is 70 cents on each $100 of the total consideration. For example, if you're selling your home in Brevard County for $300,000, you should expect to pay $2100.
Pest inspections are required for certain types of buyer's loans. For example, if your potential buyer is using a VA loan, you will be required to pay for the cost of a termite inspection, and this is required by law; therefore, the cost is non-negotiable.
Closing Costs Sellers Are Responsible for in Florida
The real estate commission is the most significant fee sellers are responsible for when selling a home in Brevard County. Real estate commission in Florida is an average of 5% to 6% of the home's sales price. This means that on the average Brevard County property listing price of $340,000, as of March 2022, sellers should expect to pay anywhere from $17,000 to $20400 in real estate commission. In general, the real estate commission is split equally between the listing agent broker and the buyer's agent broker.
Of course, many agents and brokerages offer flat-fee listing services and reduced commissions. Although this sounds promising in theory, it's important to understand what this means in practice. Often discount brokerages provide a limited listing service, as the focus is on the number of deals they can close, not the quality of service. This usually costs sellers more in the long term, whether due to lost time or lost profit. Before you hire any real estate agent, it's crucial to ask exactly what they offer as part of their service.
Selling Your Home In Brevard County
If you're selling your home, Curri Properties can help. Curri Properties is a Florida-based real estate company offering a comprehensive list of professional, full-service real estate services to sellers and buyers in Brevard County and the surrounding area. Our licensed real estate agents can provide you with a strategic sales plan drawn from more than two decades of experience to ensure you get the best sales price possible for your home.
Click here to connect with one of our knowledgeable real estate agents today and learn more about selling your home in Brevard County.
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