If you're a Florida homeowner preparing to sell your property, you need to understand the fees and expenses involved in closing, otherwise known as closing costs. While buyers typically pay most closing costs, sellers can expect to pay anywhere between 5% to 10% of the home's selling price in closing fees and related expenses.
The specific costs will depend on the property's price, local customs, and negotiations with the buyer. However, there are several standard closing costs to keep in mind as you prepare to close on your Florida property's sale.
An Introduction to Closing Costs in Florida
When a real estate transaction reaches its closing stage, the buyer and seller come together to sign the necessary documents and complete the transfer of property ownership. However, this process is not as simple as signing papers and exchanging keys. Both parties must share responsibilities associated with the closing.
The Essentials of Seller Closing Costs in Florida
As a seller in Florida, you will incur certain closing costs to finalize the sale of your property. The major closing costs for sellers include:
- Real Estate Agent Commission: Real estate agent commissions are a significant portion of the closing costs for sellers in a property transaction. These commissions are fees paid to the agents for listing and selling the property. As a seller, you must cover the commission fees for both the buyer's and seller's agents, ranging from 5-6% of the sale price.
- Transfer Taxes: The state and local governments impose these taxes for transferring the property's title, and the responsibility for payment varies depending on the location. Florida charges a documentary stamp tax of $0.70 per $100 sale price.
- Unsettled Debt Owed on the Property: Sellers must pay off any remaining mortgage balance, liens, or judgments on the property at closing.
- Prorated Property Taxes: In Florida, property taxes are paid in arrears, which means homeowners pay taxes for the portion of the year they own the property. The system requires careful calculations during property transactions to ensure accurate proration of taxes owed. You are responsible for the property taxes up to the closing date when you sell a property. The title company or closing agent will prorate the property taxes based on the days you own the property during the tax year. Prorated taxes ensure you are only responsible for your portion of the property taxes, and the buyer is responsible for the remaining portion of the tax year.
- Closing or Settlement Fees: Closing or settlement fees are charges associated with finalizing a real estate transaction. These fees cover various services provided by the title and escrow company. Check out our closing cost calculator to see what your closing costs would be.
- Title Search: As the seller, you will want to order a title search once you list your home for sale. The title search report will provide a detailed property history and allow any title issues to be addressed before closing.
Contact Our Jacksonville Closing Attorneys
While the specific closing fees will depend on your location and property type, you can expect to pay for title search, transfer taxes, and closing fees. With the right professionals on your side, closing the sale of your Florida home will go smoothly.
For professional guidance on closing costs and a seamless property closing in Florida, contact the Jacksonville closing attorneys at Atlantic Coast Title and Escrow.