Buying or Selling a Home on Longboat Key?
Are you thinking of buying or selling a home on Longboat key? Possibly after weeks, even months of searching, you found the perfect residential Longboat Key real estate. You’ve made an offer on it, and it has been accepted. Now what?
For buyers from other states, you may be surprised to learn how the expenses of selling and purchasing Longboat Key residential real estate are handled. For the majority of the United States, the buyer and the seller split the expenses of the sale. They share in the closing costs. Here, who pays for closing costs can be as varied as the county or town your residence may be located in. Longboat Key real estate transactions typically assign the bulk of the closing costs to the buyer. That doesn’t mean the seller is totally off the hook, though. When you go down the list of who pays what closing costs, it’s actually pretty even between buyer and seller.
It is Longboat Key practice that the buyer pays for the Title insurance. This also means that they select the Closing Agent, which can be a title closing company or an attorney and is most often an attorney. When the buyer selects an attorney to do the closing, the buyer is represented by the attorney. The seller is not. The seller has the choice to also get representation, or not.
Closing costs really depend upon the particular transaction, i.e., cash vs. mortgage, purchase price, etc. It is safe to say that closing costs can range up to 9% of the final sale price. Here’s the breakdown of how those costs typically disperse.
Potential Seller’s Closing Costs
- The cost of obtaining a pay off any existing loan or mortgage
- The Satisfaction of Mortgage and any other documents needed to clear title
- Documentary Stamps on Deed ( amount determined by purchase price)
- Commission to the Real Estate Broker (and their Agent) for marketing and selling the property
- Property Tax (share that seller is responsible for paying pro-rata)
- Estoppel Certificates from the association which shows if there are any outstanding fees due to the association and if there are any pending or confirmed special assessments
- Condo Fees (share that seller is responsible for paying pro-rata)
- Homeowners’ Association Fees (share that seller is responsible for paying pro-rata).
Potential Buyer’s Closing Costs
- Property Tax (share that buyer is responsible for paying pro-rata)
- Recording Fees on the Deed
- Title Search on the property (to confirm clear title and to clear any liens or clouds on the title before closing)
- Preparation of the closing documents (Warranty Deed, Bill of Sale, Owner’s Affidavit, and any other documents necessary to clear any title issues)
- Homeowners’ Insurance
- Condo Fees (share that buyer is responsible for paying pro-rata)
- Homeowners’ Association Fees (share that buyer is responsible for paying pro-rata)
- Mortgage Recording Fees
- Settlement Fee – the amount paid to the closing agent to close the transaction
- Survey of the Property
- Inspection of the Property
- Title Insurance Policy for the Buyer on the property (Usually, the buyer pays for a title insurance policy for the buyer as protection that there is good legal title passing to them in the purchase) Florida has a promulgated rate. The cost is the same if you use either an attorney or a title company.
- Flood Insurance Policies are required on Longboat Key for single-family homes that are mortgaged. If you are purchasing a condominium, normally the Association pays for the building insurance. Then the owner would pay for “walls in” only insurance.
Finally, in 2018, Longboat Key property owners were assigned a “special underground assessment tax.” The Town gave the property owners two options for payment of the assessment:
- Pay the assessment amount in the letter provided, which is considered “prepaying” the amount due at a reduced rate; or
- The assessment will automatically be collected as an annual installment appearing on the annual tax bill commencing in November 2018 and continue for a period of thirty (30) years.
How and who will be responsible for the payment of this assessment is something that can and should be addressed in your sale/purchase agreement.
With over 40 years of real estate transactions, I invite you to contact me if you are considering buying or selling a home on Longboat Key. Bruce Myer knows each and every step of the closing process and is equipped to address any additional requirements or issues that may emerge during the course of the transaction.
Looking for your dream home with plenty of space and an open floor plan, access to boat docks with a boat lift, private beach access, or direct beach views? I have a wealth of knowledge and experience when it comes to the real estate market, and touring homes for sale. I am here to answer all your questions.