Seller's share of Closing Cost

[Single Track]

I just gasped when my Village Realtor gave me an estimate of closing costs for me to sell my 2 year old patio villa. A sale price of $185,000 could run at least $12,900 and he said the lion's share of closing is borne by the seller. Is this something peculiar to The Villages real estate people or would an outside realtor like Lyle Grant have a cheaper way to sell a house?

I wish I didn't have to sell my home but I must return to my family in the North. I feel like I'm being punished for daring to leave FL.

[FlamingoFlo]

What portion of that is the brokers fees? That is the biggest chunk. If you haven't listed yet, look for someone that has a lower percent fee.

[elbear]

You have to pay the realtor but closing costs are what is negotiated with the buyer. It doesn't matter that someone says the seller/buyer usually pays this and that....it is something you negotiate and put in your contract and agree upon.

[kansasr]

At a 6% broker's fee (which is pretty standard around here), that comes to $11,100 on a sale price of $185,000. Sounds like that's where most of your closing costs are coming from.

[Phanatic Luvr]

Seller's are also expected to pay for title insurance, although negotiable, showing the buyer that you have a clear title with no liens on your property. That is a state set fee based on sale price. My guess, besides the 6% commission, your title insurance is about $1,000. So far, there is $12,100. You will also have to pay doc stamps. You will receive a portion of your taxes back, as the buyer will have to give you a credit at closing for the portion they will owe, since you have already paid them for the year.
Good luck!

[Halibut]

Or you could try selling it yourself. Might be a drag somewhere else, but the local market is pretty lively right now.

[Bonanza]

Seller's are also expected to pay for title insurance, showing the buyer that you have a clear title with no liens on your property. That is a state set fee based on sale price. My guess, besides the 6% commission, your title insurance is about $1,000. So far, there is $12,100. You will also have to pay doc stamps. You will receive a portion of your taxes back, as the buyer will have to give you a credit at closing for the portion they will owe, since you have already paid them for the year.
Good luck!

Sorry, but sellers are not necessarily expected to pay for title insurance. Who pays for title insurance is a traditional thing in each county and is also not set in stone. I don't know what county the OP lives in but you can always write into a contract (if it isn't pre-written in) under special clauses that the buyer is responsible for paying for the title insurance.

By the way, title insurance is not even necessary for closing when selling a property unles a mortgage is involved. Then the lender would require the buyer to have it. I will say, even if a mortgage is not involved, a buyer would be foolish not to have it.

[kstew43]

you can also negotiate the realtors commission. 6% may be the norm in the villages, but the norm in south florida is 5%.

If the listing realtor really wants your listing, they may lower there commission fee.

[3377en]

For sale by owner sign two bucks. Try that first. I've sold all my properties but one by myself. The one I used a realtor for was a pain in the butt. Doors left unlocked, ac left on at 60, not flushed toilets after they used them!!

[Bonanza]

you can also negotiate the realtors commission. 6% may be the norm in the villages, but the norm in south florida is 5%.

If the listing realtor really wants your listing, they may lower there commission fee.

I have been a Realtor in south Florida for many years and the "norm" is not 5%. As a matter of fact, there is no "norm" and to say there is a "norm" is illegal and against the Sherman Anti-Trust Act.

A seller should be very careful when trying to lower a Realtor's commission. If the commission offered to the selling agent is too low, the seller may be cutting off his nose to spite his face. Lowering a commission to the selling agent could vey well mean that his property may be skipped over because there are other properties paying a higher rate of commision.

A good agent earns very penny of his commission. And don't lose sight of the fact that in most cases (it depends on the company), the agent gets his split from his broker.

[Bonanza]

For sale by owner sign two bucks. Try that first. I've sold all my properties but one by myself. The one I used a realtor for was a pain in the butt. Doors left unlocked, ac left on at 60, not flushed toilets after they used them!!

It sounds like you didn't do your homework in searching for a competent Realtor.

After the first sign of a problem you should have told the agent about what was wrong.
If problems continued, you should have called the broker of record from the office who had your listing.
If all else failed, you should have cancelled the listing.
Fault yourself if those issues continued.

[janmcn]

It sounds like you didn't do your homework in searching for a competent Realtor.

After the first sign of a problem you should have told the agent about what was wrong.
If problems continued, you should have called the broker of record from the office who had your listing.
If all else failed, you should have cancelled the listing.
Fault yourself if those issues continued.

Unfortunately, if you cancel your listing with The Villages Sales office you will have to reimburse them for all advertising and open houses and any other miscellaneous expense they incurred while trying to sell your house.

[kstew43]

If anyone, as a professional realtor, would pass over showing a listing because they feel that the commission is too low and more important than the potential sale of a home, to a client, then.....what can I say.

Listings in south florida, Broward, have been seen, at times, as low as 3%, I have seen them at 2%. 5% , as well as 6 and on the higher side 7%. Everythings negotiable and acceptable. The sherman act explains, expressing..."all realtors charge that fee, is unlawful" That is not what I was trying to communicate. Norm is the the wrong word to use in a listing appointment, but, most prevelant "norm" is a word I feel works for my point in my discussion.


My experiences, my views....

The villages listing agreement is not exactly the same, so I hear, to the listing agreements used by the Board of Realtors. If a seller cancels, the agent forfits any funds they used in the process of selling. Its part of the good and bad of sales, But read the contract....before you sign.... Also the length of the listing contract 3/6/12 months is also negotiable.

Good luck with your search for a realtor you feel comfortable with. Ask for references, thats your best way.

[MSGirl]

In my experience, my realtor was also the owner/ broker of her company. She lowered her commission based on the fact she was also the broker. If another realtor/ sales associate sold the listing, that sales agent would still get her normal share of the commission. Also, the agent may lower their commission if you buy another house from them while/after your current house is sold. All other fees are negotiable as to whether seller or buyer pays what fees. Question- if one uses The Villages to sell their house, but decide to take the house OFF THE MARKET, is the seller still responsible for paying all expenses accrued?

[Bonanza]

Unfortunately, if you cancel your listing with The Villages Sales office you will have to reimburse them for all advertising and open houses and any other miscellaneous expense they incurred while trying to sell your house.

Truthfully, I don't know how the Villages works regarding when they list a house. Many brokers will require you to pay expenses involved with advertising, etc., that they did in connection with trying to market your property.

Personally, I have never worked for a company that required a seller to reimburse those expenses. Usually, if a seller wants to cancel a listing contract, it's usually for a good reason.

[Bonanza]

If anyone, as a professional realtor, would pass over showing a listing because they feel that the commission is too low and more important than the potential sale of a home, to a client, then.....what can I say.

Listings in south florida, Broward, have been seen, at times, as low as 3%, I have seen them at 2%. 5% , as well as 6 and on the higher side 7%. Everythings negotiable and acceptable. The sherman act explains, expressing..."all realtors charge that fee, is unlawful" That is not what I was trying to communicate. Norm is the the wrong word to use in a listing appointment, but, most prevelant "norm" is a word I feel works for my point in my discussion.

My experiences, my views....

The villages listing agreement is not exactly the same, so I hear, to the listing agreements used by the Board of Realtors. If a seller cancels, the agent forfits any funds they used in the process of selling. Its part of the good and bad of sales, But read the contract....before you sign.... Also the length of the listing contract 3/6/12 months is also negotiable.

Good luck with your search for a realtor you feel comfortable with. Ask for references, thats your best way.

You are seriously misquoting me. Let me make it more clear for you. If there are 6 properties that are paying say, a 6% commission, and there is one paying a lower rate of commision, I can promise you that it will be the six that will be shown if they fit what the buyer is looking for. It has nothing to do with professionalism; it has to do with economics. I will bet you a million dollars that you would also show those six propeties first. I did not say that the property listed at a lower commission would not be shown at all, but the chances are certainly a lot less than the others.

Yes, there are brokers that will list a property for 2% or 3%. I will tell you that they are not full-service companies and a seller takes his chances in listing with that kind of company. 5% is not unusual but I have not seen a 7% commissiion in many years unless a seller is desperate and does that as an incentive to get more showings and hopefully a fast sale.

[jblum315]

I have bought and sold 6 houses in Florids and New York and I never paid the broker's fee when selling, but then my husband was a lawyer. However the last sale, after he passed away, was difficult to negotiate and I had to hire a lawyer. I can tell you that you don't want to go to a closing and have a big ugly surprise.

[kstew43]

wow.....expressing an opinion on this site leads to very nasty comments sent in personal messages.

I am not a drunk, or a dog on the orange couch, I think the morses have a good thing going, but I do believe they are in it for the money, but whats so bad about that. And I sleep at night, I don't spend my time on the computer.

So there......lol

[Single Track]

wow.....expressing an opinion on this site leads to very nasty comments sent in personal messages.

I am not a drunk, or a dog on the orange couch, I think the morses have a good thing going, but I do believe they are in it for the money, but whats so bad about that. And I sleep at night, I don't spend my time on the computer.

So there......lol

Kstew43, I appreciate your comments and I'm sorry if someone didn't agree with what you had to say. Everybody who had some input is appreciated and I feel I got a little more educated.

[kstew43]

thank you.

[Bonanza]

wow.....expressing an opinion on this site leads to very nasty comments sent in personal messages.

I am not a drunk, or a dog on the orange couch, I think the morses have a good thing going, but I do believe they are in it for the money, but whats so bad about that. And I sleep at night, I don't spend my time on the computer.

So there......lol

I have not sent you a nasty Private Message and if you thought I was being rude, my comment to you was not meant to be that. I only tried to "fix" what I thought was incorrect information. Sorry if you took it the wrong way. However, having been in real estate over 30 years, I find that most people are very misinformed or ignorant regarding many real estate things.

BTW -- the dog on the orange couch is a very nice dog!

[kstew43]

I have not sent you a nasty Private Message and if you thought I was being rude, my comment to you was not meant to be that. I only tried to "fix" what I thought was incorrect information. Sorry if you took it the wrong way. However, having been in real estate over 30 years, I find that most people are very misinformed or ignorant regarding many real estate things.

BTW -- the dog on the orange couch is a very nice dog!

The personal message was not sent by you.....it was sent from another, it appears, to you and me?, and I wont mention there name, complimenting what you said to me, showing there beliefs, to you, about my integrity, my looks, my a alcohol consumption and so on.. It was verbatim.

There also was a apology, personnel message, that I recieved, apparently when the sender realized they sent the message to me and possibly not you. That came much later.

Just goes to show The Villages is not quite the friendliest town around. and by the way, I am a card carrying member of the Board REALTOR.