What closing costs do I pay when I sell my home?

Here is a list of items that are normally paid for by the seller in a real estate transaction:

* Deed 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 into the state coffers.  Not sure if it has any specific allocation in the state budget. 

* Owner’s 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 own. 

* Real estate commission fee [from 3% to 10% totally negotiable] – Normally paid by the seller.  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. If you selling with Homesellers Realty your commission fee is ONLY 4 %!

* Home warranty [Cost=$450-600] – 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.

* Title 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 does not pay to an agent 

* Survey [Cost=$300-600] – Done by a professional surveyor, this will show the boundaries of the property.  Most lenders will require that this is 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.  

* Tax 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. 

* Satisfaction of mortgage and recording fee [Cost = $100-300] – The fee the county charges to file and keep a record of each important document (i.e. deed, mortgage, note, etc.)

* SELLER’s courier 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 agent.  

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.  

If you need more information contact Sun and Abstract Title Company 561 323 7788