- SELLING RESOURCES -
Pre-closing
RESOURCES FOR:
Congratulations on accepting an offer! Now the real work begins.
- DUE DILIGENCE PERIOD -
The due diligence period, typically around 45 days, involves critical steps to ensure a smooth closing. During this time, the buyer's lender and title company work to finalize the deal.
The average closing date is about 45 days after the offer is accepted.
SELLER ATTENTION NEEDED
While the buyer handles most of the financial and inspection tasks, sellers also have responsibilities:
Keep your home accessible, in good condition, and respond promptly to requests. Utilities must remain active throughout this period.
MAINTAIN YOUR PROPERTY
It's crucial to maintain your property during this period. Neglecting maintenance can lead to financial penalties. For example, if you stop mowing the lawn, the buyer can hire a lawn service at your expense, plus a 50% penalty.
Title company Florida Title & Guarantee Agency has a comprehensive guide of the closing period. A pdf they created is linked below.
- CLOSING ITEMS -
Several key tasks and costs occur during the closing period, but they are often covered by the sale proceeds unless the seller is underwater.
TITLE SEARCH
A title search ensures there are no liens or legal issues preventing the sale.
COST: $75-200
MUNICIPAL LIEN SEARCH
Required in some counties (e.g., Broward, Dade), this search checks for unpaid taxes, code violations, and special assessments.
COST: $150-200
TITLE INSURANCE
"Title" refers to someone’s legal ownership of the property.
Title insurance protects the buyer and lender against future title disputes.
The seller pays for an owner’s title insurance policy as protection for the homebuyer in case a title problem arises in the future. It is issued for the sale price of the home.
Buyers taking out a mortgage will be required by the lender to purchase lender’s title insurance. This covers the lender up to the amount of the loan in the event that any problems arise with the home's title after financing.
COST: Varies depending on the home price and mortgage amount. The cost is regulated by the State of Florida and is as follows:
TRANSFER TAXES
This is a government tax on the sale of your home. It's a closing cost so it isn't paid before closing, but we've included it here so sellers will have an idea of their total costs.
Sellers pay a documentary stamp tax, which can be calculated from the equation below:
(Sale Price/$100) x .70 = Tax amount
Dade/Broward pay 0.60 instead of 0.70
- "CLEAR TO CLOSE" -
Once everything is completed, the lender will issue a final approval to the buyer. This is known as being “clear-to-close.”
BEFORE YOU CLOSE
Ensure the following before closing:
MOVING
Though you may not yet know the exact date you will be moving, you need to do the best you can to prepare.
Start planning your move 6-8 weeks before the anticipated date. That means you should be looking into moving or truck rental companies not long after the offer was accepted.
Budget for moving costs. Even if your move is in-town, moving is expensive and time-consuming. A local move of less than 100 miles with two movers and a moving truck costs, on average, $80 to $100 per hour.
AVERAGE LOCAL MOVING COSTS
The average moving price for local moves is $25 per hour per mover. However, that price can be higher depending on your location within the country and time of the year (for example, summer, Friday's, and the end of the month tend to cost more).MOVING ALTERNATIVE - CONSIDER "PODS"
PODS and similar services offer a flexible and cost-effective moving alternative. Load at your convenience and the company handles the transport.
There is usually a monthly fee and a shipping fee, but these costs are much lower than any professional moving company.
"PODS" is the brand name of one company, but there are many to choose from.
ADDITIONAL RESOURCES
FINAL WALKTHROUGH
Ensure you are fully moved out by the closing date. The buyer will conduct a final walkthrough to confirm the home is move-in ready. Leaving the home in poor condition can jeopardize the sale or result in extra costs.
ADDITIONAL RESOURCES
