We buy homes in Tampa, FL. If you are considering selling your Tampa, Florida home, understanding how much it can cost you is an intelligent first step, not many take. Closing is the final stage in any real estate transaction, and closing costs, also known as settlement fees, are the final array of costs both buyers and sellers must incur to finalize the home sale. However, on average, these costs often vary on the home price in Florida, and sellers can expect to pay anywhere between 1-3% of the final sales price in closing costs, not including a 5-7% agent commission. Buyers can expect anywhere from 2-5%. The median home price in Florida is currently $264,164; hence sellers can expect to pay a staggering $2642 to $7925 without factoring in an exorbitant commission charged by your agent. Understanding the breakdown of these costs proves critical, so stay with us as we discuss the same. If you would like to pay no closing costs while you sell your home, continue reading to find out how Your Trusted Home Buyer can be of service!
- Settlement Fees
Fortunately, Florida law does not require an attorney to be present during the closing, but settlement or closing fees will still need to be paid to an escrow or title company. This expense can vary anywhere between $350- $600
- Title Search
A title search is an investigation conducted to ensure that the seller has actual ownership of the property and all existent liens or judgments have been cleared. A title search generally will not cost more than $200.
- Prorated Property Taxes
Florida employs prorated property taxes; essentially, you will only pay tax for as long as you have owned the property during closing. The proration is not a fixed quantity and varies across different Florida regions and municipalities. If you buy a home this January, the prorated figure will be highest during the same December and lowest as the year turns.
- Title Insurance
Title insurance protects homeowners from legal matters related to owning a piece of property. If any outstanding liens are not uncovered during the title search, having title insurance can cover the seller from legal complications. Like tax, title insurance varies depending on location, but you can expect to pay 0.5 to 1% of the property’s final sales price. Using the Florida Median home price of $264,164, title insurance would estimate to about $1321 to $2642
- Documentary Stamp Tax
Documentary Stamp tax, otherwise known as an excise tax or a ‘transfer tax,’ is a tax requirement levied by the State of Florida to indicate a change in ownership of the property. Besides Miami Dade, you will owe an excise tax of $0.70 for every $100 of the property’s value for all Florida counties. In Miami Dade, this rate is $0.60.
- HOA Estoppel
This expense is an official letter from your HOA containing all accounts of monthly dues, fines, special assessments, and other fees. Resulting to be anywhere between $200 and $500, the HOA can enforce a lien on your home, which will be troublesome to get the title cleared. This expense cannot be avoided at any cost!
Want to Avoid Closing Costs? We buy houses Tampa, so, you can make a direct sale to Your Trusted Home Buyer, this way you will reap many fruits, a couple of them being absolutely no closing costs and no commissions. Including real estate agent’s fees, your total closing costs could be up to 10% of the home sales value. For a home at the median sales price, this could be a whopping $26,416. This is a considerable amount of money that could strip away your profit margin. At Your Trusted Home Buyer, we will make you a fair all-cash offer on your home with no other hidden strings! In addition to the closing costs, we also handle any repairs or maintenance work and can help you close in as little as one week. Contact us today!