Selling a home in Florida comes with a variety of costs that can impact your bottom line. It is important to understand who pays what during the process so you can properly budget for your home sale. We will take a closer look at the costs associated with selling a house in Florida and who pays for each expense.
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When selling a home in Florida, there are various costs to consider, including:
- Real estate agent commissions: Typically, the seller pays the real estate agent commissions, ranging from 5% to 6% of the sale price. For example, if a home sells for $300,000, the commission could be between $15,000 and $18,000.
- Closing costs: Closing costs can vary, but they usually include title service and closing fees, owner’s title insurance, documentary stamp tax, recording fees, and property taxes. The total cost can range from 1% to 3% of the sale price. For a home that sells for $300,000, the closing costs could be between $3,000 and $9,000.
- Capital gains tax: You may be subject to capital gains tax if you sell your house for more than you paid for it. To avoid paying taxes when you sell property, you can consider a 1031 exchange, which allows you to defer paying taxes by reinvesting the profits into another property.
- Home repairs and renovations: It’s common for sellers to make some repairs or improvements to their home before putting it on the market. The cost of these repairs can vary depending on the extent of the work needed. For example, a home needing a new roof could cost between $5,000 and $15,000.
- Staging and photography: Some sellers choose to hire a professional stager and photographer to help make their home more appealing to potential buyers. These costs can vary depending on the level of service needed. For example, staging and photography could cost between $1,500 and $3,000.
- Homeowner association fees and transfer fees: If the home is located in a community with a homeowners association (HOA), there may be fees associated with transferring ownership of the property. These fees can range from a few hundred dollars to a few thousand dollars.
Do sellers pay closing costs in Florida?
The contract you negotiate will determine how closing costs are divided between the buyer and seller in Florida home transactions. Usually, the home seller pays the real estate commission, which can range from 5% to 6% of the sale price. Additionally, the seller typically pays for the title search, title insurance, documentary stamp tax, recording fees, property taxes and any outstanding liens or judgments on the property. However, the buyer will typically pay for expenses like the home inspection, appraisal, and loan fees. Overall, the total cost of selling a home in Florida can range from 6% to 11% of the sale price, depending on the specific circumstances. It’s important for sellers to carefully consider all of these costs and work with a real estate professional to ensure they’re getting the best possible outcome.
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At Lincoln Madison Investments, we understand that selling a house can be a complicated and expensive process. With our team of experienced real estate professionals, we’re here to help you make an easy and quick sale. If you’re ready to sell your house in Lakeland, Florida, contact us now to receive a free, no-commitment offer and get cash for your home today.
