What are the closing costs involved in selling your home?

There are many great Boca Raton and Palm Beach County homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (561) 395-8418 for a FREE home buying or selling consultation to answer any of your real estate questions.

What are the closing costs involved in selling your home?

When you sell your home, costs involved in closing the sale are probably the last thing that comes to your mind. However, it is important to know all the different costs involved in closing your home beforehand, so you aren't surprised. One of the most valuable pieces of information that our sellers receive when we first meet with them is an estimated net sheet that answers the question "What are the closing costs involved in selling my home?"

In addition to the brokerage fee and/or real estate commissions, there are other costs in closing your home that you may not be aware of. First, the closing agent will likely have a "Title Agent Closing Fee" of some sort, probably around $350. There will also be a "Title Search Fee" and "Title Update Fee" which we estimate will run you an additional $235. These fees  sometimes get bundled together so don't panic if you see a higher number.

If the property you are selling is located in Palm Beach County, the seller will select the title company or closing agent. This also means that the seller will be responsible for paying the "Owner's Title Policy". In Florida, this fee is based on what is called the Lowest Promulgated Rate. These are the lowest title insurance policy costs a title company is allowed to charge. They are also set by the state and the rate for the owner's policy is based on the final sales price of the home.

Next on the estimated net sheet is the Documentary Stamp Tax on the deed. This fee is also charged by the state and is calculated by taking 0.7% of the sales price. This fee is the transfer fee of the deed by the seller to the buyer. Once the title company gets the transfer signed, there is also a recording fee for that deed.

Finally, the municipality where you live will also charge a fee when the title company does a lien search. This search is necessary in order to be sure that there are no liens or open permits on the property that would prevent the property from closing without it being cleared. 

In the meantime, if you are thinking of getting your home on the market, or you just want a second opinion or have questions about closing costs, please give us a call or e-mail. We look forward to speaking with you!