What Do I Owe at Closing?

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Brevard County Florida Real Estate

What Do I Owe at Closing?

There are so many aspects of purchasing or selling a home, it is understandable why it can be somewhat overwhelming to the person selling or buying sometimes.   Besides all of the contract and legal aspects of purchasing, the financial aspect can be the most stressful. One of the most common questions I get asked as a Realtor, is, “What do I owe at closing?”

“How much is it going to cost me at the closing table to sell my house?” “How much is it going to cost me at the closing table to purchase this house?”

While each individual purchase or sale is as unique as the other, there are too many variables that create a closing document for a seller or a buyer to go into here at one time.

What I can provide you however, is a picture of what the customary costs of selling or buying a home are. You can then discuss with your Realtor or Lender about the specific costs for each line item.

Customary Seller’s Expenses

  • Title search and closing fee (approximately $500)
  • Owner’s title insurance policy, if applicable, as per the sales contract. (varies with sales price of home.  i.e. $250,000 sales price would be approximately $1,500)
  • Process satisfaction of mortgage for existing mortgage. (pay off what you still owe on the home you are selling.)
  • Municipal lien search – (approximately $75)
  • Brokerage/Transaction Coordinator fee $300 – $500)
  • Doc Stamps on deed. (documentary stamps) – $0.70 per $100 based on sales price. (In Miami-Dade County, it is $.60 per $100)
  • Home warranty, if applicable per sales contract (approximately $500)
  • 1st or 2nd mortgage payoff
  • Property taxes – prorated for time occupied calendar year.  (varies)
  • Real estate commissions for selling agent and buyer’s agent. (typically 6% of sales price – 3% each side)

Customary Buyer’s Expenses

  • Title Search and closing fee (approximately $250)
  • Owner’s title search insurance policy, if applicable, as per the sales contract
  • Lender title insurance policy
  • Endorsements to the lender’s policy, if applicable
  • Recording fee for the warranty deed (approximately $75.00)
  • Property taxes – prorated for time occupied calendar year.  (varies)
  • Recording fee for the mortgage (approximately $75.00)
  • Documentary stamps on the mortgage – ($.35 per $100 based on the mortgage amount)
  • Intangible tax on the mortgage ($.002 X the mortgage amount)
  • Assignment of mortgage (if applicable) (varies)
  • Inspection of the subject property – typically includes a 4point inspection, wind mitigation inspection and WDO inspection (wood destroying organisms) (approximately $300 – $500 depending on the size of the home)
  • Appraisal of the subject property (approximately $350 – $500)
  • Survey of the subject property (approximately $300)
  • Condominium approval fees and dues, if applicable
  • Homeowner’s association dues and transfer fee, if applicable
  • Homeowner’s insurance and possibly flood insurance
  • Lender’s fees which could include, but not limited to: loan origination fee, credit report fee, tax service fee, underwriting fee, document preparation fee, prepaid interest, PMI and establishment of an escrow account.  ($1,500 – $3,000)  (Varies from lender to lender)

As I mentioned above, no two sales or purchase transactions are identical. It is always best to refer to your lender and or your Realtor when it comes to questions about your closing. It is imperative that you are well aware and prepared for all of the costs involved in the transferring of title on a property transaction.

If you are thinking about selling your home or in the market to purchase a new home, our team of Real Estate Professionals would love the opportunity to talk with you.


About Author

Don Norris

Don & Natalie Norris were raised in Central Florida on Merritt Island. After Don moved off to college and then traveling and living both around the United States and abroad, he moved back to Merritt Island to marry his best friend and business partner Natalie. Natalie, after graduating Merritt Island High school with Don, stayed on the Island after going to college in Lakeland, Fl. and California. Together, Don and Natalie have raised their six children on Merritt Island. They enjoy relaxing afternoons on the beach, kayaking around the Thousand Islands of Cocoa Beach and the Indian River. Brevard County is in their blood, but enjoy traveling around the United States and abroad as well. Norris Real Estate allows Don and Natalie to engage their customer base on a personal level by not just assisting selling or buying homes, but by providing a trusting and competent hand in the selling and buying process that creates a bond, relationship and appreciation with their customers. As a team, Don and Natalie Norris have all of the tools they have acquired and cultured over the past 20 years to give their clients the absolute best customer experience in the selling of their home or buying their dream home.

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