Thinking of selling your home in Florida? And wondering how to calculate closing costs? Well, that’s the smallest part of the listing process. After many efforts, you are now ready to sell or buy your property at good prices.
Florida is a large state with the second most expensive real estate market compared to other states. If you’re a new seller selling your home for sale by owner, closing costs are more difficult to manage.
You need to estimate the estimated cost of closing rate in Florida. It is another completely new process that requires better math skills to calculate.
Several online real estate websites have facilitated your efforts and created a Florida Seller Closing Cost Calculator that works wonders for both sellers and buyers. He calculated the cost of closing the Florida dealership.
This means less effort and time. You can get estimated closing costs. Typically, the closing price for sellers is between 8 and 10 percent, including the cost of the real estate agent’s commission.
Also, the buyer’s agent’s commission rate is typically between 3 and 5 percent. It is comparatively less than the seller’s closing costs because sellers typically have to pay the buyer’s commission at closing.
If you are still confused about how to go through the list process, let me help you by explaining it through an example.
Let’s say you’re calculating standard closing costs for a Florida seller.
- First, you need to calculate the agent’s commission for both parties (buyers and sellers), which is typically charged at 5 to 6 percent of the listing.
- After that, add the pending bills which include utility bills, electricity bills, etc.
- Now you need to calculate the proportional property tax by calculating the number of days in the particular year that you sell your property.
- If you proceed, you must pay settlement fees to the company for which you provide listing services.
- Attorney fees are not required in Florida, but many states require the hiring of an attorney. Without it, no transaction will be completed legally.
- The next step is to search for the title and municipal lien, both of which cost up to $200.
- Next to get an HOA Estoppel that is charged from $200 to $500 one hundred dollars.
- Documentary stamps or special stamps differ depending on the location and value of the property.
- Finally, that the title insurance is registered in the public records based on the value of the property.
How to calculate closing costs?
So you may get the idea that closing costs depend on all of the factors listed above. The sum of the costs of the above factors make up the cost of closing a seller in Florida. It’s a bit frustrating and time consuming to do manually. However, final cost calculators work wonders and provide sellers or buyers with an estimated cost by adding all the necessary parameters.
Last words
Calculating closing costs is much easier if we estimate them using a cost calculator. We hope you find these tips useful. However, if you don’t want to pay any closing costs on the sale of your property, perhaps selling and selling to a real estate investor like Your Trusted Home Buyer could be a good option for you.
Also read: How to sell your real estate in Houston?
Categories: How to
Source: HIS Education