The process of selling a house can seem confusing to many people. They aren’t sure of where they should begin or who to contact for help. However, selling your house doesn’t have to be complicated. Florida residents could tap many real estate agents willing to do whatever it takes to help get their homes sold as fast and efficiently as possible.

Many people see selling a house as a way of making money, but pinpointing the exact amount of their profit would largely depend on the kind of house they’re selling and the accompanying costs that come with selling it. In short, there’s no unilateral magic number to aspire for in any transaction. Putting your house on the market and offering it to Jacksonville home buyers, for instance, is only half the fight. Once you find a buyer, you still have to go through the process of closing. 

Closing the sale comes with many hidden costs that first-time sellers might not know about, and this is where the profits would differ from home seller to home seller. Some of these hidden or overt fees are listed below.

• Real Estate Agent Commission

Hiring a real estate agent is probably the best move you can make when putting your house on the market. If you’re inexperienced in this domain, a real estate agent will do all the hard work to find your home a new owner. They are usually experienced with this and might even have clients already interested in purchasing. This can help you profit faster and make the process of selling the home easier. 

However, know that real estate agents charge clients based on commission, meaning they’ll usually take a percentage of your asking price for their service fee. So, if you hire a real estate agent, be ready to pay this fee once your home closes.

• HOA Estoppel

Before finalizing the sale of your house, make sure to pay any due balances for your services or homeowners’ association (HOA). Once you’ve cleared any outstanding fees, you might have to pay an additional fee ranging from $200- $500, depending on your HOA, to get a certified estoppel letter saying you’re no longer in debt with the HOA and that all your fees have been paid. 

This is a requirement because the HOA could put a lien on your house if you have unpaid fees. Since you no longer live in that house, it could cause legal and financial problems for its future homeowner.

• Transfer Tax

Transfer taxes are taxes paid in the county where your house is located, and the range depends on the value of your home. Transfer taxes are mandatory and are usually paid when the deed is recorded. 

In most Florida, transfer taxes are $0.70 for every $100, meaning the transfer tax for a $250,000 home would be $1,750. The only exception is Miami-Dade County, where their fee is only $0.60 for every $100. However, homeowners will be responsible for covering other taxes when selling a home in this county. 

• Title Insurance

Title insurance fees are used to protect the buyer when signing the title. These fees cover the insurance just in case there are problems with a home’s title. Such issues might include hidden liens or other unknown or undiscovered fees when looking up the title the first time. These fees are set by the state and paid by either the buyer or seller when transferring the title, although the latter usually shoulders it.

• Courier Fee

This fee only applies if you have a mortgage on your home. This fee is usually charged when sending the payoff amount to your mortgage lender to jumpstart the process of selling your house. This fee also ensures you don’t have any additional mortgage lender problems and can get the house sold quickly. 

• Settlement Fee

One benefit of selling a house in Florida is that your attorneys don’t need to be present when the transaction is happening. Their settlement fee depends on your home and area, but it’s usually about $500 or so in return for their services. 

Takeaways

Even though selling your home can be a good way to make money, remember that the price you’re asking for isn’t the same amount that you’ll receive once it’s all said and done. Many states require taxes and fees apart from what you’re already paying to your real estate agent. 

When selling your house, it’s essential to keep all these fees and taxes in mind to get a good idea of how much money you and your family will be spending—and have a ballpark figure of how much you could profit from the sale.