{"id":45,"date":"2019-08-03T21:38:34","date_gmt":"2019-08-03T21:38:34","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=45"},"modified":"2019-08-03T21:38:34","modified_gmt":"2019-08-03T21:38:34","slug":"closing-costs-in-florida-what-to-know","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/closing-costs-in-florida-what-to-know\/","title":{"rendered":"Closing Costs In Florida: What to Know"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"672\" height=\"480\" src=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2019\/08\/What-will-it-be-my-closing-costs.png\" alt=\"\" class=\"wp-image-46\" srcset=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2019\/08\/What-will-it-be-my-closing-costs.png 672w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2019\/08\/What-will-it-be-my-closing-costs-300x214.png 300w\" sizes=\"(max-width: 672px) 100vw, 672px\" \/><\/figure>\n\n\n\n<p>Florida\u2019s population is in an upswing, growing by\u00a0<a href=\"http:\/\/worldpopulationreview.com\/states\/florida-population\/\">more than 322,000<\/a>\u00a0new residents in 2018 alone.<\/p>\n\n\n\n<p>Are you looking to join these ranks?&nbsp;<\/p>\n\n\n\n<p>Whether you\u2019re moving into a new Florida home or you want to sell yours and look elsewhere, you\u2019ll have to go through a real estate closing process, first.\u00a0<\/p>\n\n\n\n<p>No matter which side you\u2019re on, this can be an expensive part of the journey.<\/p>\n\n\n\n<p>Today, we\u2019re 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.<\/p>\n\n\n\n<p>Ready to learn more? Let\u2019s get started!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Typical Closing Costs for Florida Buyers<\/strong><\/h2>\n\n\n\n<p>Ready to plant your roots deep in the heart of Orlando? Dream of settling down near South Beach?<\/p>\n\n\n\n<p>Before you can drive away with a title in your name, you\u2019ll pay for a few services, first. In most cases, closing costs for\u00a0<a href=\"https:\/\/phphouses.com\/how-it-works.html\">Florida home buyers<\/a>\u00a0equal between 1% and 3% of the home\u2019s 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.<\/p>\n\n\n\n<p>When you apply for a loan with your lender, you\u2019ll receive an estimate of all of these charges, which will vary depending on your specific situation. Let\u2019s take a look at some of the standard charges that most buyers in the state will incur.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Title Insurance&nbsp;<\/strong><\/h3>\n\n\n\n<p>As the buyer, you\u2019ll 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.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Document Recording Costs<\/strong><\/h3>\n\n\n\n<p>Next, you\u2019ll have to pay to change all official documents related to the property from the current owner\u2019s name to yours. You\u2019ll pay these fees, which cover the cost of creating new land records, to the city or county. They are around $225.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Mortgage Fees<\/strong><\/h3>\n\n\n\n<p>In addition, you\u2019ll incur additional costs related to your mortgage. Some of the most common fees in this category include:<\/p>\n\n\n\n<ul><li>Origination fees (Vary)<\/li><li>Discount points (Vary)<\/li><li>Credit report processing ($25)<\/li><li>Appraisal fee ($375)<\/li><li>Processor fees<\/li><li>Survey fees ($300)<\/li><li>Flood certification ($15 to $17)<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Escrow Fees<\/strong><\/h3>\n\n\n\n<p>Many sellers will work it out with the buyers to split the escrow fees 50\/50. You\u2019ll verify this setup in your purchase agreement. Most buyers in Florida pay around $750 in escrow.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Three Types of Taxes Relating to Florida Real Estate<\/h3>\n\n\n\n<ul><li>First, all properties in Florida are assessed a taxable value and owners pay an annual Florida\u00a0<strong>property tax<\/strong>\u00a0based on this value (except churches, schools, government entities). This tax is paid to the local municipality<\/li><li>Second, if you sell your home, there may be a\u00a0<strong>capital gains tax<\/strong>\u00a0on the profit realized from the sale. For this scenario, there are federal guidelines set forth for global buyers under the\u00a0<strong>Foreign Investment in Real Property Tax Act (FIRPTA)<\/strong>.<\/li><li>The third tax category only applies to rental properties. If there is net profit on the rental income, there may be a&nbsp;<strong>federal tax on the profit generated from renting out a vacation home or other investment property<\/strong>. In addition, for short-term rentals there is a&nbsp;<strong>sales tax<\/strong>&nbsp;which is generally charged to the renter and submitted to the local government.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"640\" height=\"426\" src=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2019\/08\/Closing-Costs.png\" alt=\"\" class=\"wp-image-47\" srcset=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2019\/08\/Closing-Costs.png 640w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2019\/08\/Closing-Costs-300x200.png 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Seller Closing Costs to Expect<\/strong><\/h2>\n\n\n\n<p>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\u2019ll sign a few forms and pay a few fees, first.\u00a0<\/p>\n\n\n\n<p>While a seller closing cost calculator can give you a more exact estimate, let\u2019s take a look at some of the most common fees you\u2019ll incur.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Title Insurance<\/strong><\/h3>\n\n\n\n<p>This fee covers the work required to ensure that you\u2019re 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\u2019ll also pay a title insurance fee to his lender.<\/p>\n\n\n\n<p>In most cases, this fee will be around 1\/3 of 1%. If you sell your home for $180,000, for instance, the seller\u2019s title insurance fee would be about $600.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Escrow Fees<\/strong><\/h3>\n\n\n\n<p>You\u2019ll also pay escrow fees as the seller. These will vary depending on which party you\u2019re paying them to. In Florida, you may pay escrow to your title company, the closing service or your real estate attorney.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Real Estate Commission<\/strong><\/h3>\n\n\n\n<p>If you work with a real estate agent to sell your home, you\u2019ll pay that person a commission for the services rendered. This will usually be around 6% of the home\u2019s purchase price.&nbsp;<\/p>\n\n\n\n<p>You\u2019ll agree to a commission rate in writing before you partner with an agent.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Recording Fees<\/strong><\/h3>\n\n\n\n<p>You\u2019ll 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.<\/p>\n\n\n\n<p>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\u2019ll pay extra for that service, as well.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Sell Smart and Skip Florida Closing Costs<\/strong><\/h2>\n\n\n\n<p>For both buyers and sellers, Florida closing costs can add up. Whether you\u2019re getting new keys or giving yours up, you don\u2019t want to lose a ton of valuable money in the process.<\/p>\n\n\n\n<p>Want to sell you Florida property and avoid this costly hassle?<\/p>\n\n\n\n<p>That\u2019s where we come in.<\/p>\n\n\n\n<p>We buy houses for cash, and we\u2019re looking for homes in Florida. We\u2019ll help you skip the expensive and time-consuming closing process in a few quick steps.<\/p>\n\n\n\n<p><a href=\"https:\/\/phphouses.com\/index.html\">Contact us<\/a>\u00a0today to learn more and see how simple real estate can be.<\/p>\n\n\n\n<p><a href=\"https:\/\/phphouses.com\/index.html\">PHP Houses<\/a><br>142 W Lakeview Ave #1030<br>Lake Mary, FL 32746<br>P: (407) 519-0719<br>Fax: (407) 205-81951<br><a href=\"https:\/\/phphouses.com\/contact.html\">info@phphouses.com<\/a><br><br>Connect with us:<br><a href=\"https:\/\/www.facebook.com\/WeBuyHousesCentralFlorida\/\">Facebook<\/a><br><a href=\"https:\/\/twitter.com\/WalterDiLoreto\">Twitter<\/a><br><a href=\"https:\/\/www.linkedin.com\/in\/walter-diloreto-25403710\/\">Linkedin<\/a><br><a href=\"https:\/\/www.instagram.com\/wdiloreto\/\">Instagram<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PHP Houses explains the costs to sell a house in Florida. <a class=\"continue\" href=\"https:\/\/phphouses.com\/blog\/closing-costs-in-florida-what-to-know\/\">Finish Reading<span> Closing Costs In Florida: What to Know<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[15,10,18,16,8,14,20,12,5,13,19,6,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/45"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=45"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/45\/revisions"}],"predecessor-version":[{"id":48,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/45\/revisions\/48"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=45"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=45"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=45"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}