Home Selling Costs That Catch Sellers Off Guard

By Raymond Fernandez

Originally from New York, I relocated my family to South Florida 20 years ago. Knowing that we wanted to live in Florida but not where exactly, we did a thorough investigation of the entire State and consider ourselves fortunate that we decided on the exact right place for us.... South Florida.

How did you do the math when you decided to sell your home? You most likely subtracted the mortgage and the commission from the sale price, which wasn’t exactly wrong. There’s just one problem: it only accounts for the costs you already know about. By the time you reach the closing, there can be quite a few more, and you’ll end up walking away with less money than you planned.

I see this with almost every seller I sit down with here in Palm Beach, Florida, and across South Florida generally.

So before you list, let me help you fill in the rest because the costs that get left out are the ones that decide what you actually keep.

Start with the commission, the cost you already know about. It’s usually your single biggest expense. It’s negotiable, and whatever we agree to gets spelled out in the listing agreement. I’ll walk you through exactly what you’re paying for before you sign anything. That one rarely catches you off guard. It’s everything else that does.

Concessions are the cost you’re most likely underestimating. It’s a cost that surfaces when you agree to cover something for the buyer to get the deal done, maybe their closing costs, a repair credit, even buying down their mortgage rate.

Here’s the disconnect I see. Heading into this spring, 83% of sellers expected to get their asking price or more, but only 39% expected to make any concessions. The confidence is high, but far fewer sellers are braced for what the market’s actually asking of them.

And this is the cost climbing the fastest. This past May,sellers gave a concession in 46.2% of home sales nationwide, the highest May share on record and up from 43.1% a year earlier. It doesn’t necessarily replace a price cut, either. Roughly one in every seven sellers, or 15.7%, did both in that same stretch, dropping the price and handing over a concession.

Then there’s the collection of costs you won’t see coming until closing. These are the ones that surprise you on the settlement statement:

• Title
• Settlement fees
• Recording fees
• Prorated property taxes

Florida does make this a little simpler than in many states because you’re not required to have an attorney handle the closing. Trust me, that helps. But simpler isn’t free, and title insurance is one more thing you’ll want to know about. Florida has its own set of laws, and they can add up to real money. Call my office and ask because what you’ll owe depends on your specific property.

Timing also matters. Homes here in Palm Beach, Florida are taking a little longer to sell than they used to, but the market’s still strong. We recently hit an all-time high around $700,000, so prices are holding steady and even improving, though homes are taking a bit longer to move. That extra time is worth planning around now rather than running into it later.

So here’s what I’d tell you before you list.

Don’t just ask, “How much can I sell my house for?” Ask, “What am I actually going to walk away with?”

The sale price isn’t the only number that matters. Your net proceeds are, quite frankly, the one that matters more. Before you sign a listing agreement, I’ll help you map it all out, with a realistic look at your situation, how your home compares to what it’s up against, and what our market’s actually doing on the day you list, not some national average that could look nothing like South Florida.

If you’re thinking about selling and want real answers to your questions, reach out. Call or text me at 561-781-7821, email me at info@livinginpalmbeachfl.com, or visit livinginpalmbeachfl.com. I’ll help you walk in knowing exactly what you’ll walk away with.