Seller's share of Closing Cost
 

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.

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.

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.

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.

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!

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

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.

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!!

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.

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.

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?