What Are Common Florida Seller Closing Costs?
Real Estate Agent Commission: typically 5-6% of the sales price: Assuming you intend to leverage the expertise of a qualified realtor and the buyer also engages an agent to purchase your home, you’ll be responsible for paying both of them at closing. This amount can differ greatly from one agent to another, but it is typically 2.5%-3% for each agent in Florida.
Outstanding amounts owed on the property: You'll be responsible for any unsettled payments on your home that can include HOA fees (homeowner's association) and utility bills. All of these extraneous costs will be prorated to your closing date.
Prorated Property Taxes: Property taxes in Florida are paid in arrears. You’ll owe property taxes for the portion of the year you owned the house (be it 30 days or 300 days). They’ll be prorated based on the number of days you owned the home, so the amount you owe will be much higher for a November closing than one in early January (300 days vs. 30 days). Note: If your current mortgage payment includes an estimated amount for property taxes that they collect and put in “escrow”, then each month you should be able to get your escrow balance back after closing.
Settlement Fee: typically $350 to $600: While you can avoid attorney fees (Florida doesn't require an attorney to be present at closing), you'll still need to pay a settlement fee to the title company or escrow company for their services on closing day.
Title search: $100 to $200: A title search looks into the home's ownership history to ensure you're the true owner and that the title is clear of any liens or judgements.
Municipal Lien Search: $100 to $200: The municipal lien search looks into unrecorded property issues that aren’t shown in a typical title search, such as code violations, water/sewer/solid waste balances, and open or expired permits, to name a few. The cost varies by municipality.
HOA estoppel: typically $200 to $500: This letter certifies how much you owe the HOA. It includes your monthly dues, as well as any special assessments, past dues, fines or other fees. Since the HOA could potentially put a lien on your home for unpaid dues or to enforce violations, the title company must confirm that you are in good standing with the HOA and current on all your dues before they can give clear title on the home.
Documentary Stamps on the Deed: varies with price of the home: Also called a “transfer tax”, this tax is paid to your local county when the deed is recorded. In all Florida counties other than Miami-Dade, it is calculated as $0.70 per $100 (or portion thereof) paid for the property. For a home with the median sales price of $275,000, the document stamps would be $1,925. In Miami-Dade county, the rate is $0.60 for single family homes, with a surcharge for other types of properties. Document stamps are separate from the mortgage tax and intangible tax paid by the buyer.
Title insurance: rate is set by the state and based on the purchase price. The owner's title insurance protects the buyer from issues that arise with the title such as outstanding liens that were not discovered in the title search. The rates are set by the State of Florida, but depend on the price of your home. For the Florida median home price of $275,000, your title insurance will cost about $1,450. While who pays this fee is negotiable, the seller commonly pays it in most parts of Florida.