Home Selling in Jacksonville>Question Details

Liza, Other/Just Looking in Jacksonville, FL

What would the approximate closing costs be for the seller when selling a home (condo) for $100,000 in?

Asked by Liza, Jacksonville, FL Sun Jan 13, 2008

Jacksonville FL? What would they be if the sale price is $150,000?

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Liza,

I'm going to make some assumptions but some of the fees are negotiable and you might also choose to pay some buyer's closing costs to get your price or to help a buyer get to the closing table. So take these as a general rule of thumb and realize that at the time of your closing, the title company you choose will issue a HUD-1 with a complete list of all your costs and those of your buyer.

I am only going to address Seller charges here as well. Buyer's fees are generally associated with the money they borrow to purchase the property. If they do not borrow to buy the property, the fees at closing can be REMARKABLY low. I've seen million dollar cash transactions that have cost a buyer less than $350. to close.

Also, keep in mind that some "dollars paid" at the time of closing (mostly for the buyer) are not "closing costs" for example taxes owed or utilities unpaid through the day of closing may be collected but these are not tied to the transaction, you would have owed them anyway, they just have to be paid before passing the deed.

First let me address charges you can control:
The real estate commission - you can pay nothing and market and sell your home yourself, or you can hire professional services to handle the entire transaction, or you can choose to hire a service that offers some of the help for a limited fee. Whatever fee you negotiate with the real estate professionals who assist you will be on "your side" of the closing costs statement on page 2 of the HUD-1.

Then there are the fees that are beyond your control (you must pay them or negotiate the buyer to pay them but they are "traditionally seller's fees") and they are "fixed" by some entity and you can't "get a deal":

Stamps on the deed. When you transfer your deed to the buyer, you will pay the state a transfer tax based on the sales price. The number you use is .007 times the sales price. In the scenario of a $100,000 sales price the charge would be $700 in the case of $150,000 the tax would be $1050.

Owner's Title Policy. This fee is set by the state. In Florida, the amount varies and goes down per dollar sold as the price goes up (so you pay more per value on $100,000 than you do on $1M) but the rule of thumb is to use $5.75 per $1000 of value. So in the case of a $100,000 sale, the title policy would run $575 and for $150,000 $862.50. You will also pay for any endorsements to the title policy that are required by the lender. There are two that almost all lender's require but if the property is on the water, is a condo, is in a PUD there will be others.

You'll pay for recording the deed which is usually 1 or 2 pages per property interest (the fees to the Clerk of the Court in the County in which it's filed is $10. for the first page and $8.50 for each additional page.)

Then there are fees that you will pay but that can have a "little negotiation" in them:

The Survey that you will be required to provide to the buyer. Call around and find out what various surveyors charge. You can probably save $50 to $100 but make sure they are licensed and ask for a few (title company) references if the price seems way to low. If you don't chose the surveyor, the title company generally will.

You will pay for at least one overnight or courier fee (Fed Ex) or a wire charge (but not both unless you have more than one note) to cover the cost of sending the pay off you current note, if you have one. If you have more than one mortgage on the property to pay off then you will be charged an overnight fee for each. If you do not have a note to pay off then you will not be charged this fee.

You will also be charged a closing fee by the title company. New legislation passed on Oct. 1 of this year allows YOU to receive a rebate of title fees if YOU are the person buying the policy. I own a title company. let me suggest if you are going to negotiate a discount to the fee that you do so BEFORE you hire the title company. Ask them if they are willing to offer you a rebate of fees (these are no longer referred to as "Butler Rebates either). You can also ask them to send you a schedule of their charges. But in the defense of title companies, they provide an enormous amount of security and support to a closing transaction and the margins in this industry are very thin compared to lenders and Realtors. Don't squeeze them too tight. They work very hard for the money. And there is a limit to the amount of the policy you're purchasing that they can rebate so if you can negotiate anything, consider that beneficial and take it.

If the taxes for the year or any liens are on the property and have not been paid off, you will be required to pay these out of proceeds at closing or bring a receipt showing they have been paid. Also, your utilities must be current through the day of closing so the title company may hold money to assure these are paid.

I hope this helps! Good luck and shop for a good title co!
1 vote Thank Flag Link Sun Jan 13, 2008
Liza

I have prepared an actual Seller's Estimate from our MLS program
Follow this link to see the page for $100,000
http://pub.realtyweb.net/cgi-bin/view.cgi?200803150113180851…

Follow this link to see the page for $150,000
http://pub.realtyweb.net/cgi-bin/view.cgi?200803150114176403…

Prorations for Property tax, condo fees etc not included. Home Warranty, repairs not included are negotiable
0 votes Thank Flag Link Fri Mar 14, 2008
Total cost with a customary NEFAR (Jacksonville) contract with 6% commission
$100,000-$9650
$150,000-$13,750
0 votes Thank Flag Link Wed Feb 6, 2008
Liza

Seller paying normal seller closing costs (as on the FAR or FARBAR contracts used in your area), seller's closing costs would be approximately 2.5% of the sales price.

If you include broker commission, the costs would be (2.5%+commission percentage) times the sales price.

Best of luck
0 votes Thank Flag Link Sun Jan 13, 2008
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