You want to sell your house in Florida and know that now is the best time to do so. When doing the math, you realize that, aside your mortgage payoff and taxes, you will also need to pay for closing costs, that can add up to 7% of the sales price! This can be very frustrating, but luckily there are some ways you can avoid paying this fee, which means pocketing in all of that money!
What Are Closing Costs?
Closing costs are the expenses over the property’s price paid to third parties to facilitate and complete a real estate transaction. Some of these costs are paid by both seller and buyer, and they may include loan origination fees, discount points, appraisal fees, title searches, inspection fees, surveys, deed recording fess, title transfer fees, and credit report charges, to mention a few. According to realtors.com, these fees can represent an additional 2%-7% cost for sellers and buyers, and these for sure make a huge difference on how much a buyer will pay and a seller will receive at the end of the transaction.
Can any of these fees be eliminated?
Typically, closing costs are unavoidable, especially if you are planning on selling your property to a buyer that will need a mortgage. Unfortunately, these fees are an essential part of the transaction process to ensure that the home meets all the necessary standards.
However, there are ways you can minimize that cost or even dodge some of these fees. Here are some tips and tricks on how you can do that:
- No-closing-cost mortgages: this is a great option if you want to avoid having to pay the closing costs all at one on the closing date. Essentially, it means these costs will be spread out in your monthly mortgage payments. The negative part of this alternative is, just like with the rest of the loan, the closing costs will also be impacted by interested rates, which makes them even higher in the long run.
- Compare fees: While some of these fees are set in price, like filing fees, some of them may vary, such as lenders and inspectors. Before moving forward with a specific lender or inspector, shop around to compare reputable companies’ fees, this will ensure you get the best deal while working with someone that is reliable and experienced.
- Avoid closing costs by selling your property to a cash buyer: Cash buyers usually will take care of the customary closing costs. The tricky part about selling your property in cash is finding a reliable buyer, who will make sure the process is completed without any hiccups. Here at Homeinc you will find an experienced team of experts that are trustworthy and will take care of the entire process, while making sure the closing costs will be taken care of. That will save you all the money you would have to leave behind to pay for closing costs, what means more money in your pocket after you sell.