Just because you are selling your home doesn’t mean you aren’t responsible for closing costs. These costs can range anywhere between 5% to 10% of the sales price and includes items such as pro-rated property taxes and commissions to the realtors and others involved in the transaction.
While closing costs are negotiable, it’s important to be familiar with them in case the buyer requests you pay a portion of their fees so you can negotiate right back.
So, what are some common closing costs that sellers are responsible for? Here are a few examples:
Realtor Commission
If you are working with a realtor or real estate agent they need to get paid. Typically real estate commission is 6%, 3 percent for the buyers agent and 3 percent for the sellers agent.
Title Searches
A title search looks into the home’s ownership history to ensure the true owner is who they say they are and the title is clear of any liens or judgements. This should cost no more than a few hundred dollars.
Title Insurance
As a buyer with a loan, you will need to pay for a lender’s policy for insurance and potentially an owner’s policy as well. In Palm Beach County this is often paid for by the Seller. Please do contact us for this charge as it can be substantial and you will need to understand how much this amount is.
Documentary (Doc) Stamps
This transfer tax is paid to the county when the deed is recorded and is usually paid by the buyer.
Settlement Fees
In the state of Florida, you will likely pay a settlement fees to the title and escrow company for their services on closing day.
While there are other typical closing costs including prorated property taxes, HOA fees and others these are some of the typical fees involved in closing costs.
Do your homework ahead of time so you know exactly what you are paying for and what you shouldn’t be responsible for. For additional questions about closing costs contact us at Alliant Title and Escrow at 561-912-0922. We would be happy to help!