|
Costs involved in selling your home
By GAY MARSH (ST. AUGUSTINE) - Let's take a look at costs involved in selling your home in St. Johns County, Florida and St. Augustine:
The following costs generally apply in St. Johns County, Florida based on a $150,000 home sale price. 1. Abstract of Title, Title Exam and closing the transaction: $900 2. Stamps on the Deed: $1,050 3. Satisfaction of the Mortgage: $6 4. Real Estate Commission: $9.750 Other costs may include: prorated property taxes and accrued interest on the mortgage (both are based on the day of closing); repairs; mandatory homeowner¹s association or condominium fees (which may be due or negotiated). Although the average real estate commission on a residential property is 6.5 percent, this commission can fluctuate higher or lower depending on numerous factors including price, type of property, difficulty, property condition, location, or marketing expectations. Interest for the month: When estimating interest, calculate that one principal and interest payment will be charged, because interest is paid in arrears. Prorated property taxes: The property taxes are taken from the current tax bill, divided by 365 days, then prorated for the amount of time the seller has had use of the property. That amount is then credited to the buyer out of the proceeds. Additionally, an agreement is made between both parties that should the property taxes exceed the amount collected at the time of closing, and because the taxes are paid in November, that the buyer and seller agree to split the additional cost. Negotiating the contract: By negotiating to pay some of a buyer's closing costs, the seller can make a sale happen. A seller needs to know the bottom line or net when incorporating the mortgage payoff so that when considering a combination negotiation of price and closing costs contribution, the walk-away dollar is a known close approximate of equity. Realtors are worth their weight in gold when it comes to negotiating skills, not to mention all the details involved in the selling process. Repairs are also a factor of seller expense. When an appraisal is done, not only value but noted conditions of repair will be noted and required to support a value. If the roof is in poor condition, the appraisal will call for a licensed roofing inspection. If a wood destroying organism report is required and extensive wood rot exists, the appraiser may note visual requirements to repair wood rot which would be substantiated on the wood destroying organism report and that repair work would be required to be done prior to closing. In some instances, this report is waived. Certain loan products used by purchasers include FHA- and VA-guaranteed loans. These will add approximately $500 to the seller's expenses. These costs are called lender fees or junk fees. VA loans allow veterans, having served 180 consecutive days, the opportunity to purchase a home with no money down. However, at a home price of $150,000 many VA buyers have funds to pay their own closing costs and pre-paids. This is an option they can negotiate. The seller is allowed to pay all closing costs and pre-paids and is usually reflected in a full price sales contract. The property must appraise for at least the sales price or greater. Conventional loans restrict the amount a seller can contribute to the buyer's closing costs. A seller can limit the amount of costs to be applied to the transaction but this is most effectively done upon consideration of each offer that is presented. Keeping an open mind is highly recommended because selling a home is never cut and dry. And remember, the terms of the agreement are just as important as the price. Always consult with an expert before selling or buying real estate. Gay Marsh, Realtor/Broker, is with Premier Property Realty Group in St. Augustine.
|
Home sellers may find it helpful to know in advance which closing costs are involved in the sale of their home. Closing costs for the buyer and seller are traditionally peculiar to an area.