You’ll find hot real estate markets all over the United States. South Florida is one of those markets, and Miami ranks high on the list of best places to invest in real estate. That’s great news if you’re selling your Miami home in 2020!
Before you plant that For Sale sign in the front yard and plan your first open house, you’ll want to count the cost. You should first answer this question—how much does it cost to sell a home here in Miami?
To help you find the answer, we’ve put together a list of the costs associated with selling a home. Reading it should help you feel more prepared when you’re ready to sell.
Real Estate Agent Fees
When you get to the end of this post, you’ll realize paying a real estate agent to sell your home takes the biggest piece of your profit pie.
An excellent real estate agent works hard to make the sale. They market the house, show it, answer questions from other agents, and curious home shoppers. Real estate agents also help you navigate the stack of documents needed to complete the transaction.
Fees paid to the listing agents average between 5-6%, but in most markets, fees are negotiable. What you might not realize is the seller’s agent doesn’t pocket the entire commission.
They split it with the buyer’s agent, and unless they’re independent, they share a portion with the broker.
You’re not required to use a real estate agent. Many sellers work outside the lines and sell to real estate investors, bypassing the high commission fees.
Both the seller and buyer bring funds to a real estate closing. Buyers bring their funds in the form of a check while sellers pay closing costs out of the proceeds from the sale of the property.
The buyer pays the most when it comes to closing costs—typically around 2%-5% of the final sales price. Depending on the type of loan, a buyer can ask the seller to pay closing costs. If you’re in a buyer’s market, you may end up paying a portion of the closing costs so that the buyer can afford the home.
You may also need to pay pro-rated property taxes, and if applicable, pro-rated HOA fees. Next, we’ll look at a few other costs associated with closing.
Title Search and Title Insurance
As soon as you’re under contract, the closing agent initiates the title search. The primary reason for the title search is to determine whether there are defects or claims against the property.
Part of the title examination includes a chain of title, which, if everything is in order, will provide a clear title for the new owner.
In Florida, the seller pays for the title examination, but in Miami-Dade County, the buyer typically pays for title insurance. The buyer also chooses the title company. Since many things about real estate transactions are negotiable, your buyer may still ask you to pay part of the title insurance fee.
Now, let’s take a look at what it costs a seller to prepare their home for listing and showing.
Most sellers want to show the world the best version of their home. Unless you’re selling your home in as-is condition, you will do staging at some level.
If your home is already in pristine condition, you may only need a fresh coat of paint, a deep clean, and a re-arrangement of the furniture.
Sometimes using a professional staging company makes sense. Professional home staging usually includes the company placing furniture in your home. They may also bring accent pieces.
Home staging may help a home sell faster. Home staging works well if you’ve already moved out of the home. If it doesn’t reduce the time it sits on the market, it at least makes your home look more attractive to buyers who have a hard time imagining the home with furniture.
Professional home staging costs around $1200, but if your home doesn’t sell right away, you could pay more since most staging companies charge by the month.
While you won’t pay for the buyer’s home inspection, sometimes sellers do pay for a pre-listing inspection. This benefits the seller in two ways.
First, a pre-listing inspection often reveals issues with the home the seller isn’t aware of, giving them a chance to either make repairs or price the home accordingly. Second, a pre-listing inspection often gives the buyer confidence in the home they’re considering purchasing.
Depending on the square footage of your home, you’ll pay between $400-$500 for a pre-listing inspection.
Sellers usually end up covering at least a few home repairs before they finalize the transaction.
If you had a pre-listing inspection, or you’re already aware of needed repairs, you should consider making the repairs before you list your home. One way you can avoid making both minor and major home repairs is to sell the home yourself.
Once you have a buyer and their agent involved, you’ll surely have a list of repair requests after the buyer’s home inspector gives their report. You can either agree to make the repairs before closing or leave funds on the table so that the buyer can handle things after closing.
How Much Does It Cost to Sell A Home DIY?
We’ve covered a few items you’ll want to consider when selling your home in Miami. You may have other itemized things such as document fees, attorney costs, and your mortgage payoff is you don’t own your home outright.
As you can see, when you sell a home using a licensed real estate agent, you do cut into your profits. Sure, you pay someone else to deal with some of the headaches, but you’re not required by law to use an agent.
You can sell your home yourself!
How much does it cost to sell a home without the involvement of a third party? To start, you’ll undoubtedly avoid agent commissions, title insurance, and most repairs (mainly if you sell in as-is condition).
Sound enticing? We pay cash for homes every day and help sellers put more in their pockets. Contact us today and get an offer!