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Florida’s population is in an upswing, growing by more than 322,000 new residents in 2018 alone.
Are you looking to join these ranks?
Whether you’re moving into a new Florida home or you want to sell yours and look elsewhere, you’ll have to go through a real estate closing process, first.
No matter which side you’re on, this can be an expensive part of the journey.
Today, we’re sharing a detailed overview of what both buyers and sellers can expect to pay to cover Florida closing costs. This way, you can understand your obligation and set your budget.
Ready to learn more? Let’s get started!
Ready to plant your roots deep in the heart of Orlando? Dream of settling down near South Beach?
Before you can drive away with a title in your name, you’ll pay for a few services, first. In most cases, closing costs for Florida home buyers equal between 1% and 3% of the home’s total purchase price. This helps cover the work that key stakeholders, including title companies, appraisers, lenders, and real estate agents must perform to finalize the transaction.
When you apply for a loan with your lender, you’ll receive an estimate of all of these charges, which will vary depending on your specific situation. Let’s take a look at some of the standard charges that most buyers in the state will incur.
As the buyer, you’ll pay for title insurance, which protects you and ensures that there are no issues with the current title in place. This can run you more than $1,000 in some instances.
Next, you’ll have to pay to change all official documents related to the property from the current owner’s name to yours. You’ll pay these fees, which cover the cost of creating new land records, to the city or county. They are around $225.
In addition, you’ll incur additional costs related to your mortgage. Some of the most common fees in this category include:
Many sellers will work it out with the buyers to split the escrow fees 50/50. You’ll verify this setup in your purchase agreement. Most buyers in Florida pay around $750 in escrow.
Think closing costs are only designated toward the buyer? Not quite. Before you can sell your property and start looking for your next piece of Florida real estate, you’ll sign a few forms and pay a few fees, first.
While a seller closing cost calculator can give you a more exact estimate, let’s take a look at some of the most common fees you’ll incur.
This fee covers the work required to ensure that you’re the actual owner of the property and that the title is clean and marketable. If the buyer is taking out a mortgage to buy the property, he’ll also pay a title insurance fee to his lender.
In most cases, this fee will be around 1/3 of 1%. If you sell your home for $180,000, for instance, the seller’s title insurance fee would be about $600.
This percentage increases as the price of your home go down and vice versa. This means the most expensive homes in Florida can see a title insurance fee of 1/5 of 1% or less. If you chose to bundle your policy with the buyer, you can often qualify for discounted rates.
You’ll also pay escrow fees as the seller. These will vary depending on which party you’re paying them to. In Florida, you may pay escrow to your title company, the closing service or your real estate attorney.
If you work with a real estate agent to sell your home, you’ll pay that person a commission for the services rendered. This will usually be around 6% of the home’s purchase price.
You’ll agree to a commission rate in writing before you partner with an agent.
You’ll pay for the title change to occur and for the real estate attorney to make the official update to the county record. Most sellers in Florida pay to record a reconveyance of the title, which runs around $150.
If there are other forms that your attorney must process before the sale is complete, such as a road maintenance agreement or quit claim deed, you’ll pay extra for that service, as well.
For both buyers and sellers, Florida closing costs can add up. Whether you’re getting new keys or giving yours up, you don’t want to lose a ton of valuable money in the process.
Want to sell you Florida property and avoid this costly hassle?
That’s where we come in.
We buy houses for cash, and we’re looking for homes in Florida. We’ll help you skip the expensive and time-consuming closing process in a few quick steps.
Contact us today to learn more and see how simple real estate can be.