Seller's Costs For Selling a Home in Lakeland, Florida

You’ve decided to sell your home in Lakeland, Florida. Well, it is really a bad time right now, but if you must then be prepared for the expenses related to the transaction. Many people are not aware of the actual costs that will be incurred when they sell. The majority of the costs are calculated on the sales price. So, to be able to even get an idea, you need to estimate what you think you might be able to get for your home.

Let’s say you estimate a sales price of $200.000.00

If there is a Realtor involved the commission is usually calculated on the sales price. With the market the way it is you may find a Realtor to accept the listing for 5% to 6%. A few months back, it was normally 7%.

Now, take the estimated 200,000.00 x .07 = $14,000.00 (Ouch!)
200,000.00 x .06 = $12,000.00 (Oh My)
200,000.00 x .05 = $10,000.00 (Oh)

You could always try to sell For Sale By Owner, but it’s not as easy as it sounds.

The Seller is normally responsible for the Title Insurance. This premium for the insurance is also calculated on the sales price.

So, take the estimated 200,000.00 and calculate it the following way:
The first 100,000.00 is calculated at 5.75 cost per $1000.00.
So take $100,000.00 x .00575 = $575.00
The amount over the first $100,000 is calculated at 5.00 cost per $1000.00
So take the second $100,000.00 x .005 = $500.00

Now add the two figures together and you have the cost of the Owner’s Title Policy.
On the sales contract of $200,000.00 the most you will pay is $1,075.00.

The reason for most is that if you purchased your home less than 3 years ago, and you sell your home before that time frame, you will receive what is known as re-issue credit. It is always best to calculate your costs on the total, just to be on the safe side.

You will also be responsible for the document stamps on the deed that must be recorded in the public records. The government has to get their share! This is calculated on the sales price, also.
Calculate as follows: $200,000.00 x .007 = $1400.00

Yes, it is very expensive to sell a home. We haven’t even finished with all the charges yet.
You have to record the deed in the public records, that is $10.00 for the first page. Which a normal deed is only one page.

So far, all of the expenses I have mentioned are set by a division of the state or the county. The only figure that might be lower is if the re-issue rate applies. Meaning you sell before your 3 years is up, and that you received a title policy with that closing. You must have the prior title policy to receive the credit. It is cost effective to search for that policy or contact the closing agent and request a copy.

The title company performing the closing, must charge a closing fee, search fee, and exam fee. Now, the amount they charge you is up to them. So here is where you really need your quotes before you choose a title company. The cost should not be the only information used to evaluate which company to use though! Some will quote you low just to get you in the door! Be careful.
So to guesstimate the industry I would say to consider those three fees combined to run you about, $400 - $500.

You should request a list of all fees each title company charges on their normal closings. They all have different names for them, so ask them for ALL fees. Most will have a courier or postage fee to the seller for overnighting any mortgage payoffs for the property. Many started adding warehousing fees, to store your file for years. I even saw some that started a data storage fee to put all your documents on a disk. If you choose to have your payoff wired to your mortgage company, that is another fee. If more documents have to be recorded to correct the title, those are more fees. (They can’t quote on recording because they will not know if corrections need to be made until after they search the property.)

So do you still want or need to sell your home?

There are some other costs that you may not have thought of right away, that will be deducted from your bottom line, before you receive your profits. If you have a homeowner’s association and there is an amount due, or almost due, that is going to be deducted. Also, any property taxes that are due will be deducted. If the taxes or association dues are not yet due, you will only be responsible for the percentage of the time you owned the property.

Here is where you stand with a $200,000.00 sales contract.
$200,000.00 contract price
$ 14,000.00 sales commission
$ 1,075.00 owner’s policy
$ 1,400.00 document stamps
$ 10.00 recording fee
$ 500.00 closing fees
$ 200.00 misc fees

So, before you even consider the taxes and home owners association fees you have already deducted: $ 17,185.00

Don’t forget to deduct the payoff for your mortgage too! The figure on your monthly statement does not usually include all the fees associated with your payoff, so call the mortgage company and request the payoff amount.

Well, now you have enough information to get an idea of what the costs involved with selling your home will be. The market is really tough right now, so I wish you the best of luck on the sale of your property. Remember to call around and get quotes and ask people you trust for recommendations. See my earlier blog for more information on the industry.