What Costs are Home Sellers Responsible for Paying in South Florida?


What Costs are Home Sellers Responsible for Paying in South Florida?

  1. Real Estate Commissions: Some sellers have the misconception that the commissions they pay are the largest expense when selling their homes. It’s true that the closing statement will show this figure as being the highest expense, however, not enlisting the services of a professional will often be more costly to a home seller than paying a fair commission for the marketing expertise of a licensed and board certified Realtor®. Owners who try to sell their homes without a listing agent often find themselves underwhelmed by the offers they receive and overwhelmed by the amount of work and time it takes to get a buyer to the closing table. Even if an owner lists their home in the MLS via a flat fee service provider, many cooperating agents will elect not to show the home to their buyers for fear of having to work with a seller who is not qualified to complete a transaction. The real estate commission earned by agents is well deserved and having a great listing agent is not only empowering and convenient, it results in higher profits to the home seller.
  2. Documentary Stamps on the Deed: The tax rate is $.70 per $100 (or portion thereof) of the total consideration paid, given, or to be paid or given, for the transfer. Miami-Dade County is an exception, where the rate is $.60 per $100 of consideration (or portion thereof) when the property is a single-family dwelling. If the Miami-Dade property is anything other than a single-family dwelling, the tax rate is $.60 plus $.45 surtax per $100 of consideration (or portion thereof). See this quick and handy reference to calculate doc stamps costs in South Florida: http://dor.myflorida.com/dor/tips/pdf/tip08b04-01.pdf
  3. Title Associated Fees: These fees depend on the title company that is selected during the contract negotiation. Independence Title has an excellent closing cost calculator and it is available both as a web application or a iPhone or Android app. Go here for the calculator: http://www.titlerate.com/calculator.html
  4. Owner’s Title Insurance Policy: If the seller selects the closing agent they are often also electing to pay portions of the new owner’s title policy.
  5. Seller Concessions: If during contract negotiation the seller has agreed to pay portions of the buyers’ closing costs the seller is responsible for the amount set forth in the contract/s they signed. Sometimes concessions are negotiated at a flat rate, for instance $5,000, and sometimes it is negotiated as a percentage. Lenders have their own guidelines for maximum concessions allowed but a good rule of thumb is a maximum of 6%.
  6. Property Taxes: The seller is responsible for the property taxes accrued from January 1st until day before the transaction closes.

Should you have further questions on this subject please feel free to contact me directly. I’m happy to answer any questions you have and show you the likely profits and costs you can expect to incur during the sale of your home. I will provide you with a complimentary comparative market analysis and let you know the estimated price at which you can expect to sell a home in a given period of time based on comparable sales in your area. Request a complimentary comparative market analysis here. Please include your full name, preferred contact number and property address. I will reference tax rolls and proprietary agent software to check property details and confirm with you once I’ve started my research.