What can you expect to pay in terms of closing costs when it comes time to sell your home? This is a question on the minds of many sellers, so let’s get to the bottom of it.
The first cost to consider when selling is, obviously, the expense of paying off your current mortgage. By taking care of this, you’ll be able to pass the property on free and clear. Also, here in Florida, we may lack a state income tax, but we do have a Documentary Stamp tax on real estate, which costs 70 cents for every $100 of the purchase price.
Florida home sellers will also need to account for the cost of a tax and lien search (approximately $250) and a title search. In Broward County, these are typically counted as a seller's expense, but this can be negotiated.
If you live in a Homeowners Association, you’ll likely need to pay an estoppel fee as well. This expense allows you to receive proof from the association that you don’t owe anything to them.
Of course, you will also need to pay your agent’s commission fee. When it comes to this expense, knowing what you’ll receive for the amount you’re paying is far more important. Hiring an agent who can provide you with top-level service will leave you with much more in your pocket at the end of the deal than hiring an agent for the lowest possible price. Our team would be happy to show you what we can do for you if you make the choice to partner with us.
Lastly, there’s the matter of property taxes. Remember: The tax bill that you receive in November is for the year you receive it. So if you were to sell your home, your taxes would be prorated according to the amount of time you owned the property out of that year.
To give you an example of how this works, let’s imagine that you sold a $400,000 house on June 30. If your tax bill for the year was estimated to be $5,000, you would need to give the buyer a $2,500 credit since you sold right in the middle of the year. Then, the buyer would pay the full bill when they received it in November.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.