Here is a list of
items that are normally paid for by the seller in a real estate transaction:
stamps(or doc stamps)[Cost
= .007 * Sales Price] The documentary stamp tax is imposed under
section 201.02, Florida Statutes (F.S.). To the best of my knowledge, it
is essentially a tax that goes in to the state coffers. Not sure if it
has any specific allocation in the state budget.
title insurance policy [Cost= 0.55 to .65 Sales Price] If
someone comes along and makes a claim against the title, this will provide
protection. For example, if someone were to knock on your door and say,
“Hey my grandfather left this property for me in his will… It’s
mine.” That’s probably not a legal battle you want to take up on your
* Real estate commission fee[from 3% to 10% totally negotiable] – Normally paid by the seller but not always. According to the National Association of Realtors 2011 Profile of Home Buyers and Sellers, roughly 80% of real estate commissions were paid by the seller in a transaction.
This is sometimes offered by the seller to ensure that the appliances/systems
are covered for a year. There are several different companies that can
provide a home warranty. (optional)
* Title search [Cost=$50-125] – This is
the fee charged by the title company for reviewing and examining the chain of
title to verify that a title insurance policy can be obtained.
company fee/Closing attorney [Cost = $300-500] – What the title company (or attorney) receives for
coordinating the closing of the transaction and accounting for all funds.
* Transaction fee [Cost=$250-500]- This is the fee charged by Real Estate office for file storage and documents preparation and it is not pay to agent
[Cost=$300-600] – Done by a professional surveyor,
this will show the boundaries of the property. Most lenders will require
that this be done. It’s usually a good idea to have it done anyway.
But, if there have been no new buildings, fences, etc. raised since a previous
survey, then a buyer may be willing to accept an old one.
service fee [Cost=$100-250] –
This is charged by a lender for coordinating the payment of real estate
taxes. The reason this would be a seller cost, is that FHA loans
sometimes require it to be paid by the seller.
of mortgage and recording fee [Cost = $100-300] – The fee the county charges to file and keep record of each
important document (i.e. deed, mortgage, note, etc.)
fees [Cost = $50-150 if any shipping is needed] – If you live out of town and the title company has to
overnight paperwork, there’s usually a nominal fee charged by the closing
If you’re looking for a “rule of
thumb” to give a rough estimate of the costs above. I tell sellers to use
about 3% (excluding real estate
commissions) of the purchase price for a conservative estimate of their
total closing costs. This will by no means give you an exact amount, but
it should put you in the ball park.