Typical Home Seller Expenses in Florida
When thinking about selling a home, one of your first considerations is how much you may net from that sale. Those proceeds may be needed to purchase your next home, so calculating a somewhat accurate figure is important. Here are a few typical home seller expenses in Florida to include in your calculations.
If you have a mortgage on your current home, it will need to be paid off when you sell. Mortgage payoffs are the most common home seller expenses in Florida. Do not rely on your last mortgage statement. Mortgage payments are due in arrears, so that statement may be one or more months off. Plus, interest and other charges are calculated up to the closing date. Therefore, the payoff amount will always be higher than what is shown in your latest mortgage statement.
Real Estate Commissions
Unless you are an expert at selling real estate, you should enlist the help of a real estate agent. Your agent will assist with properly marketing your home for sale, qualifying buyers, negotiating offers, and completing pre-closing tasks. Agents typically charge a percentage of the sale price. That commission is also often shared with the agent that procures a buyer (buyer's agent). The amount that individual agents charge can vary based on their experience and services provided.
Most buyers will complete a home inspection. They will likely negotiate repairs or monetary concessions for any issues uncovered. Some issues may be items that you were not even aware of. It's important to budget for potential repairs or concessions when estimating home seller expenses in Florida.
Closing Fees and Taxes
At closing, you will be responsible for several different types of fees. Below are a few common ones.
- Property Taxes - If the tax bill covering your closing date has not yet been issued, you will be charged a prorated for your ownership period.
- Attorney Fees - This covers the services of an attorney to review and advise you on the purchase contract.
- Transfer Tax - Sellers are responsible for paying transfer taxes in Florida. The amount charged in Orange County is $0.70 per $100 of the sale price.
- Courier Fees - This covers the expense of expediting your mortgage payoff to your lender.
- Recording Fees - Once your existing mortgage is paid off, a release must be recorded at the Registry of Deeds. A recording fee is charged.
- Buyer's Closing Costs - Some buyers may negotiate payment of certain fees. Ask your real estate agent for more information on this.
Summary of Typical Home Seller Expenses in Florida
The above are just a few of the most common home seller expenses in Florida. In order to estimate your net earnings, you will also need an estimated sales price. The best way to get this is to contact a real estate agent. Experienced agents understand current market conditions and can accurately determine a range in which your home may sell based on recent comparable sales in your neighborhood. Contact Arrowsmith Realty for a free market analysis on your Florida home!