What are the Costs Associated with Selling a House in Florida?
Isn’t everything getting more and more expensive lately? Your hard-earned money is being sucked out of your pocket at every turn! Even in Florida, the process of selling a home is time-consuming and expensive. You’ll learn about all of the expenses associated with selling a Florida house, as well as some expert advice on how to minimize those expenses so that you may preserve more of your home’s equity, which you’ve worked so hard to build up.
Assumptions must be made in order for us to show you the entire cost of selling your Florida property. Your home’s selling price, for example, can range from extremely low to extremely high. So, let’s use Florida’s median home value of $252,000 as a starting point.
The second assumption is that you’ll use a typical real estate agent, which most people do, so we’ll have to factor in their commission fees. If you decide to sell your house without a real estate agent or with a cheap broker, you will have to adapt your budget accordingly.
Here are some of the primary costs related to selling a house in Florida:
Preparing your home for sale: 2% to 3% of the sale price
Most of the money you’ll spend on getting your house ready to sell will go toward things like repairs, maintenance, cleaning, landscaping, and staging. Cleaning the carpet, painting the walls, hiring a handyman to fix tiny things, and mulching your garden beds are all high-impact tasks that should be prioritized.
When selling a home, these fees might vary substantially based on the condition of the property. If your property requires more than 3% of the anticipated costs, you may want to examine the benefits and drawbacks of an as-is sale and not make any repairs or freshening up at all.
Florida real estate agent commission:
Your Florida real estate agent’s fees are by far the most expensive part of selling your home. Although there is no predetermined charge and they are adjustable, their fees in Florida commonly reach 5-6 percent.
As a result, a real estate agent may give white-glove concierge service and a marketing plan that will help you sell your house for the highest possible price. That’s presuming you go with someone that has a track record of delivering on their promises.
Low commission realtors and flat fee MLS listings are becoming increasingly popular in Florida as alternatives to traditional real estate brokers.
Negotiable items and buyer incentives: 1-3%
A skilled negotiator will be able to secure favorable conditions for the buyer while you are trying to sell your house. As a result, it’s a good idea to budget money for negotiations with the buyer in addition to your selling costs.
For example, a buyer who does not have a lot of money set aside for closing fees would frequently request that the seller foot some of the bill. These are termed seller concessions and are generally permitted by the banks with most mortgage programs, up to a specific maximum. We suggest setting aside 1-2 percent of your annual income as a contingency fund just in case.
A buyer will almost certainly do a house inspection after you’ve reached an agreement, and they will almost certainly insist that you make repairs or give them money back at closing if they find something wrong. It’s reasonable to budget 1% of the sale price for this.
For those buyers who want further assurance that their house’s appliances and mechanicals will be covered for the first year of ownership, a home warranty is an excellent incentive. For most consumers, the $400-$600 warranty fee is worth it because these things are not covered by homeowner’s insurance.
Moving costs: 1-2%
Keep relocation fees in mind as you prepare to sell your property! Moving boxes and packing supplies, moving trucks, storage units or canisters, or hiring movers if handling the work yourself isn’t for you are still costs if you decide to relocate yourself.
Selling your property in Florida might be a complicated process, but the most important consideration is how much money will be in your wallet or bank account after you’re done. What you need to do in order to figure this out is straightforward.
Simply tally up all of your closing costs and deduct them from the expected sale price of your home, and then subtract the total of any outstanding mortgage debt. So there you have it. Calculating the seller’s net sheet is a common term for this process.