Thinking of selling your home in Florida? And wondering how to calculate closing cost? Well, that’s the minor part of the listing process. After struggling with many efforts, you are now ready to sell or buy your property at good prices.
Florida is a large state where the real estate market is the second most expensive compared to other states. If you’re a new seller selling your home for sale by owner, it’s more difficult to deal with closing costs.
You should evaluate the estimated rate of closing costs in Florida. That’s the other completely new process that requires better math skills to calculate.
Different online real estate websites have facilitated your efforts and designed a Florida Seller Closing Cost Calculator that works wonders for both sellers and buyers. Estimated closing costs for sellers in Florida.
It means less effort and time. You can get estimated closing costs. Typically, the closing price incurred by sellers is between 8 and 10 percent, including the cost of the realtor’s commission.
Also, the buyer’s agent’s commission rate is typically between 3 and 5 percent. It is comparatively less than the seller’s cost of closing because sellers typically have to pay buyers’ commissions at closing.
If you’re still confused about how to go through the listing process, let me help you by explaining it through an example.
Assume you are calculating the seller’s standard closing costs in Florida.
- First, you need to calculate the agent’s commission for both parties (buyers and sellers) which is typically charged between 5 and 6 percent of the listing.
- After that, add the pending bills which include utility bills, electricity bills, etc.
- Now you must calculate the prorated property taxes by calculating the number of days in the particular year that you are selling your property.
- By continuing, you must pay the settlement fees to the company for which you provide listing services.
- Attorney fees are not required in Florida, but it is necessary to retain an attorney in many regions. Without this, no transaction will take place legally.
- The next step is to perform a title search and a municipal lien search, both of which cost up to $200.
- Next to get HOA Estoppel who charged up to 200 dollars to 500 hundred dollars.
- Documentary stamps or special stamps differ depending on the location and value of the property.
- Lastly, to obtain title insurance entered by the public registry based on the value of the property.
How to calculate closing costs?
So you may get the idea that closing costs depend on all of the factors mentioned above. The sum of the cost of the factors mentioned above constitutes the closing costs of sellers in Florida. It’s a bit frustrating and time consuming to do manually. Still, closing cost calculators work wonders and provide sellers or buyers with an estimated cost by adding all the necessary parameters.
Calculating closing costs is much easier if we evaluate them through the calculation cost calculator. We hope these tips are useful to you. However, if you don’t want to pay any closing costs on the sale of your property, perhaps selling it to a real estate investor like Your Trusted Home Buyer may be a good option for you.
Also read: How to sell your property in Houston?