SELLER TYPICALLY PAYS FOR THE FOLLOWING:

DOCUMENTARY STAMPS ON THE DEED - State document fees on the deed that cost 70 cents for each $100 of the purchase price.

OWNERS TITLE INSURANCE - This guarantees that liens or other encumbrances do not cloud ownership of the property.  The cost varies with the value of the house.  On a $100,000 house the insurance would cost about $725.

REAL ESTATE FEES - This is based on the percentage & terms set on the listing agreement.

BUYER TYPICALLY PAYS FOR THE FOLLOWING:

APPRAISAL - This is done to make sure the property has sufficient value to justify the loan.  It normally costs about $250 to $450 (Residential).

CREDIT REPORT. The lender checks the credit history of the buyer. Cost is about $55.

DOCUMENTARY STAMPS ON THE MORTGAGE NOTE - This is a state tax and applies to new notes and assumable mortgages.  Cost is 35 cents for each $100 of the note - $350 for a $100,000 house.

INTANGIBLE TAX ON NEW NOTE - A state tax of 20 cents for each $100 value of the new mortgage.

LENDERS TITLE INSURANCE - This protects the lender in the event of a problem with the title and

typically costs about $125 to $150.

PROPERTY SURVEY - This is done to make sure that the borders or the property are clear, for example, a neighbors fence isn't on the land or a swimming pool isn't on a utility easement. This cost varies with the size & location of the land $250 for an average lot to $400 for five acres.

RECORDING FEES - This is to pay the Title Company to record the note and mortgage agreement in the courthouse records. This fee is usually about $50.

RECORDING THE DEED - The price is based on the number of pages of the deed and normally costs $12 for a two-page deed.

TAX SERVICE FEE - Possible fee paid to an independent company that checks courthouse records each year to make sure that tax bills are paid on time to avoid liens being placed against the property.  The one time fee is about $75.

TERMITE INSPECTION - To make sure the house is not infested.  Cost is about $35 - $100.

 Home Inspection - To make sure home is structurally sound. Cost is about $350 - $600

 APPRAISAL - Usually requested by Lender to ensure/verify value. Cost $250 - $450

 IN ADDITION, SOME LENDERS MAY CHARGE Buyer THE FOLLOWING:

APPLICATION FEE - Covers the cost of applying for the mortgage.  $100 to $450.

ATTORNEY FEE - The lender rarely charges this.  Their attorney reviews the documents.  $200 to $500.

DOCUMENT PREPARATION FEE -  $50 to $300.

UNDERWRITER FEE - Some lenders may charge a fee for the underwriter to review the loan $50 to $400. 

Ask your lender.

INTEREST AND INSURANCE FEES CHARGED AT CLOSING:

INTEREST - The new owner must pay interest for the days the house is owned in the first month before the regular payments begin.  The fee is collected at closing.  If the buyer has a $100,000 loan and pays 7.25% interest, that would amount to $19.86 per day.

PREMIUM MORTGAGE INSURANCE (PMI) - This applies to buyers who make a down payment of less than 20% and protects the lender if the homeowner defaults on the loan. The fee varies with the amount of the down payment.  Some lenders do not require mortgage insurance but make it up in higher interest rates.  Check with your lender.

HAZARD AND FIRE INSURANCE - The new owner must insure the property when there is a mortgage on the property. Insurance companies require the first years premium in advance.  The lender normally collects 14 months of payment, keeping two months of payment in escrow.  Insurance rates vary greatly! Get more than one quote.

FLOOD INSURANCE - The same terms as above apply for homeowners in flood prone areas.

TAXES - When a deal closes the seller must reimburse the buyer for the property taxes for the period of the tax year that the seller owned the house.  The lender usually places that money, plus another three monthly payments, into an escrow account.  This is to cover the period between the closing and the first house payment, usually 3 months.

POINTS - Prepaid interest on a loan.  Borrowers are assessed a fee of 1% of the loan, or one point, to cover the lenders administrative costs.  This is called an origination fee.  In addition, borrowers can choose to pay a higher initial fee (more points), to reduce their interest rate.  This is always negotiable. Closing costs can vary depending upon the lender, insurance companies, and other independent fees.  These fees may vary and may be 1.5% to 5% of the cost of the house (average 3%).  Costs vary with lenders and insurance companies. Be sure to get more than one quote.

FINANCING:

CONVENTIONAL - Loans not backed by a government agency are called conventional loans.  These may be either insured or uninsured, depending upon the loan-to-value ratio and the lenders requirements.  Conventional loans are complex because on a given day there are hundreds of possible combinations of interest rates, points, and loan terms.  Most lending institutions require at least a 5% down payment.

FEDERAL HOUSING ADMINISTRATION - FHA is not a lender but a government agency that insures repayment of a loan to a lender. The borrower is able to obtain a home loan with a smaller down payment and sometimes a lower interest rate. There may be additional charges to Seller on FHA loans.

VETERANS ADMINISTRATION - The VA, like the FHA, is not a lender but guarantees loans for those who have served in the military.  Those who qualify for VA loans are often eligible for 100% financing.  Seller may incur additional charges that the Buyer cannot pay.

FARMERS HOME ADMINISTRATION - The FmHA provides financing to farmers and other qualified borrowers in rural areas. These are essentially two types:  Guaranteed loans made and serviced by a private lender and guaranteed by FmHA, and insured loans made and serviced by FmHA.  Both types of loans must be used for the construction and repair of improvements but not for the purchase of land. The Federal Land Bank makes loans for the purchase of land, construction of improvements, and for refinancing other farm debt. These loans are restricted to agricultural property.

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WHAT MUST BE DISCLOSED BY THE SELLER?

In Florida, a seller is obligated to disclose to a buyer all known facts that materially and adversely affect the value of the property being sold and that are not readily observable.
(Nearly all real estate related lawsuits are due to disclosure issues & often triple-damages are awarded.)

 Lead Paint Disclosure Brochure
(Homes built prior to 1978)

 Mold Addendum Radon Gas

 Required HOA Disclosure Summary
(Florida Statute 689.26)

 Home Warranty

 Property Taxes (Change of ownership)

 Florida Sexual Predators Act
(Florida Statute 775.21) -

 Coastal Zone Management Act
(Chapter 380.20, F.S.)  

 Florida Growth Management Act
(Chapter 163, F.S.) -  

 The Florida Building Energy-Efficiency Rating Act
(Chapter 553.990, F.S.) Brochure

 Florida Americans with Disabilities Accessibility 

Implementation Act
(Chapter 553.501, F.S.)

Residential Swimming Pool Safety Act
(Chapter 515, F.S.)

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List of Suggested Inspections:

Home Inspection by Licensed Home Inspector

Survey by Licensed Surveyor

Appraisal by Licensed Appraiser

Termite / Pest Inspection by Licensed Inspector

Mold by Mold Expert

Radon by Licensed Inspector

Topographical Survey / Inspection

Well / Septic

Sinkhole

 Any Other Professional Inspections that may be required or are recommended or necessary

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Getting Your House Ready

Making a good first impression can mean the difference between receiving serious offers for your home or being subjected to months of "lookie-loos" dropping by but never buying.

How can you ensure that your home will make the best impression possible?

Here are six tips for savvy home sellers:

1. Focus on curb appeal. The outside of your house can be the source of a very good first impression. Keep the grass well-watered and mowed. Have your trees trimmed. Cut back overgrowth. Plant some blooming flowers. Store toys, bicycles, roller-skates, gardening equipment and the like out of sight. Have at least the front of your house and the trim painted, if necessary. Sweep the porch and the front walkway. After dark, turn on your front porch light and any other exterior lighting.

2. Clear out the clutter. Real estate agents say buyers won't purchase a home they can't see. If your home has too much furniture, overflowing closets, crowded kitchen and bathroom countertops or lots of family photos or collectibles on display, potential buyers won't be able to see your home. Get rid of anything you don't need or use. Fill up your garage or rent some off-site storage space if that's what it takes to clear out your home.

3. Use your nose. Many people are oblivious to scents, but others are extremely sensitive to offensive odors. To eliminate bad smells, bathe your pets, freshen the cat litter box frequently, shampoo your carpets, dry clean your drapes, and empty trash cans, recycling bins and ash trays. Place open boxes of baking soda in smell-prone areas, and refrain from cooking fish or strong-smelling foods. Introduce pleasing smells by placing flowers or potpourri in your home and using air fresheners. Baking a fresh or frozen pie or some other fragrant treat is another common tactic.

4. Make all necessary repairs. Buyers expect everything in their new home to operate safely and properly. Picky buyers definitely will notice-and likely magnify -- minor maintenance problems you've ignored for months or even years. Leaky faucets, burned-out light bulbs, painted-shut or broken windows, inoperable appliances and the like should be fixed before you put your home on the market. These repairs may seem small, but left undone they can lead buyers to question whether you've taken good care of your home.

 5. Introduce lifestyle accessories and make your home as comfortable and attractive as possible. Set the dining room table with your best dishes. Put out your only-for-company towels. Make up the spare bed. Hang some fresh curtains. Put some logs in the fireplace. Use your imagination.

6. Get a buyer's-eye view. Walk up to your home and pretend you've never seen it before. What do you notice? How do you feel about what you see? Does the home seem inviting? Well-maintained? Would you want to buy this home? Your answer should be an enthusiastic yes!

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Dollar figures are to be used as estimates only. The information presented & contained herein is provided as a service to the general public and does not constitute legal advice. This information is not intended as, nor should it be acted upon as, legal advice, but rather only as a general discussion of concepts and principles. Please consult with your attorney before utilizing any techniques or relying on any material presented herein. While we endeavor to ensure that all information is current, we make no representation in this regard.