Closings Costs in Florida

What are Closing Costs?

Once you decide to sell your home in Florida, we realize you want to know how much you need to pay at closing. Closing costs are all of the fees you pay to sell your home. There are variations between counties, including title fees, loan payoff costs, recording fees and property taxes. On average, you will pay approximately one to three percent of the sales price of your home for closing costs.

In Florida, you also pay the realtor fees. The average due at closing is six percent. We are cash home buyers and we pay closing costs. We can save you thousands in the commission you would otherwise pay to your agent without compromising on service or quality. We want you to have more money in your pocket when you close. We can close in as little as seven days.

We will purchase your home as is so you do not need to spend your hard-earned money on repairs. We help you avoid foreclosure, deal with liens, go through probate and can even close if tenants are renting your home. We offer you a much faster and easier option than retaining the services of a realtor.

Specific Closing Costs

In most cases, closing costs are split between the seller and the buyer. Your closing costs are negotiable and you should know what they are. We understand closing costs are expensive, and our clients are interested in our services for numerous reasons. As cash home buyers, we pay closing costs whether you have an inherited home, want to sell my house fast or do not have the funds to make the necessary repairs.

We buy houses in any condition to put money in your pockets fast. There are a large number of closing costs required in Florida. We have defined the most common below to make certain you do not receive any unexpected surprises.

Commission:

You will pay your real estate agent between five and six percent of the price of your home in commission if both you and the buyer have retained the services of a qualified realtor. Although there is no set price, the majority of realtors charge between 2.5 and 3 percent in Florida. As FL home buyers, we will pay this and all other closing costs on your behalf to save you a substantial amount of money.

Prorated Property Taxes:

Florida property taxes must be paid in arrears. This means property taxes will be owed for when you owned your house during the year whether it is for just 30 days or as long as 300 days. Your property is prorated according to how many days you have owned your house. If you close in November, the property tax owed will be a lot higher than if you close in January.

In some instances, your property taxes may have been estimated and included in your current mortgage payment. This means the funds are collected every month to ensure your property tax is paid on time. Once the closing is complete, you should receive the balance of your escrow account. Unfortunately, selling your home can take months or even years. If you do not want to wait, we buy houses fast.

Municipal Lien Search:

You can expect to pay between $100 and $200 for a municipal lien search. This search determines if there are any issues with your property that have not been recorded and will not show up in a standard title search. This includes balances for solid waste, sewer and water, code violations and expired or open permits. Your cost is dependent on your municipality.

Amounts Owed for Your Property:

If you owe any outstanding amounts for your home, you will be responsible for paying them off. This can include utility bills and homeowner’s association or HOA fees. All of these costs will be prorated and due on your closing date.

Title Insurance:

The rate for your title insurance is determined by the purchase price of your home. Owner’s title insurance was established as protection for the buyer from issues regarding the title. A good example is an outstanding lien that did not turn up in the title search. The state of Florida is responsible for setting the rate, but it is dependent on the price of your house.

For a $100,000.00 home, the title insurance fee will be around $700. For a home  in the $300,000 price range it will be around $1,600.00. Whether the buyer or seller pays this fee can be negotiated. In most areas in Florida, this fee is paid by the seller. We have worked with numerous clients with an inherited home or a house in need of extensive repairs. We are cash home buyers and will pay your closing costs. We have seen every situation and can help.

Settlement Fee:

Your settlement fee is generally between $500 and $750. Since there are no Florida requirements mandating a lawyer at closing, you can avoid paying attorney fees. You will still be responsible for paying the escrow or title company a settlement fee for the services provided at closing.

Title Search:

Expect to pay between $175 and $300 for a title search. A title search researches the history of your home’s ownership to make certain you are the true owner of the home. Your title must be clear of any judgments or liens.

Documentary Deed Stamps:

Documentary deed stamps are also referred to as a transfer tax. The price will vary according to the price of your home. When your deed is recorded, you have to pay this tax to your local county. Every Florida county with the exception of Miami-Dade calculates $0.70 for every $100 paid for your property. If the median sales price of your home is $275,000 you will owe $1,925 for your document stamps.

The rate for Miami-Dade county for a single-family home is $0.60. There is an additional surcharge for other property types. As an intangible tax, document stamps are paid by the buyer and separate from your mortgage tax.

HOA Estoppel:

The average cost is between $150 and $300. This letter will certify the amount you owe to the HOA. This includes your monthly dues in addition to any past fines or dues, special assessments and other fees. If violations need to be enforced or you have unpaid dues on your home, a lien can potentially be placed on your home by the HOA. For this reason, the title company has to confirm your standing with the HOA is good and all of your dues are current before the title on your home can be cleared.

The Takeaways

There are takeaways you should be aware of before selling your Florida home. As FL home buyers, we believe every seller should have a full understanding of what is involved with closing.

Paying Closing Costs:

You can negotiate who is responsible for paying the closing costs. This can benefit both the seller and the buyer. If there is competition among the buyers, you can ask for a portion of your closing costs to be covered.

Real Estate Commission:

You will need to pay extra for your realtor commission since this is not included in your closing costs. In most cases, this is an additional six percent of the sales price of your home. This fee is due at your closing. If you want to eliminate this fee and sell my house fast, we buy houses in Florida.

Closing Costs:

Closing costs vary, but in most instances the seller pays between one and three percent of the sales price as a part of their closing costs. This amount varies depending on several factors such as the local municipality. Before you accept any sales price, make certain you ask your title agent to provide an estimate of your closing costs.

We recommend obtaining as much information as possible regarding the specific amount of your closing costs when you sell your Florida home. Your cost will impact your net proceeds. If you are concerned about the expense, we are a good option because we pay closing costs for you. Although each individual cost may seem fairly inexpensive, when you add all of the costs together, the amount is often substantial.

Calculating Your Closing Costs

The total amount of your closing costs will add up. The good news is neither the seller or buyer is responsible for paying all of the closing costs. In most cases, the seller is responsible for paying between five and 10 percent of the sales price of the home. Approximately three to four percent of the closing costs are paid by the buyer. We want you to understand even if you manage to avoid paying the majority of closing costs, you will still be responsible for paying your realtor commission.

In the state of Florida, the realtor commission for the seller can be as high as six percent. In order to determine the amount of your closing costs when you sell your home, you need to consider where in the state your home is located. One of your best options is to use a closing cost calculator. This is a good way to estimate how much your Florida closing costs will be.

You can find numerous closing cost calculators online at no charge. You will need to have certain information available before you begin, but it is not difficult to obtain. Once you have an estimate of your total costs, you can decide if they are affordable for your situation or if you would prefer to eliminate closing costs by having us purchase your home.

Can I Lower My Closing Costs?

The best way to decrease your Florida closing costs is to eliminate the commission of a real estate agent. Since you are the seller, the responsibility of paying all costs for realtor commissions is on your shoulders. This includes the commission for both your realtor and the agent of the buyer. In Florida, the rate for the standard commission is between five and six percent of the sale price of your home.

This means depending on the value of your home, you may have to pay thousands in commission. At six percent, the commission for a home sold at $275,000 is $16,500. When you add closing costs to this figure, the total amount is even higher. By eliminating the need to pay closing costs, you walk away with more money.