Sellers
Selling a House in Florida
There’s a lot to know and a lot to consider.
This site is designed to help you have an exceptional home selling experience.
Is now a good time to sell a house?
Many sellers don’t have the luxury of deciding when to move because those decisions are dictated by job requirements or life changes. But when the choice is yours, how do you know when it’s a good time to sell your home?
If there are a lack of houses for sale and prices are on the rise then it’s considered a “seller’s market”. That’s great for you as a seller, but in this scenario you are also a buyer. If you are downsizing, the market is in your favor because the gain on your larger home will be greater than the premium you are paying for your new, smaller home. However, if you are moving into a more expensive home you’ll be at a disadvantage because the gain on the home you’re selling will be smaller than the premium you will have to pay on your new home.
Right now, the Brevard County real estate market is shifting away from the strong “sellers’ market” that it has been for the last several years. Home sales skyrocketed after the pandemic started, perhaps because mortgage rates were historically low and remote workers started migrating to Florida. This created an extreme shortage of inventory (i.e. the number of homes for sale in Brevard County) and resulted in a spike in prices. But prices have now leveled off and we are starting to see a shift toward a “buyers’ market”. The bottom line is if you are thinking of selling and downsizing, we recommend you get your home on the market sooner rather than later. If you plan to sell in order to purchase a more expensive home, then you may want to hold off for a little while longer. For more information, be sure to follow our page on the ongoing status of the Brevard housing market. We update it with current data every 2 weeks.
How much should I ask for my house?
It’s critical that a house is priced appropriately when it’s first put on the market for sale. If you price too low, you won’t get as much money as you could have. But if you price too high, the house will languish. The longer a house sits on the market the less interest there is in it. If it takes you three months to bring your price down to the actual value then you are unlikely to get the kind of buyer excitement that could have driven the price up.
A house should be priced at its market value. By definition, the “market value” is the amount that a house will sell for in an open, competitive market. But since we’d need hindsight to know the true market value, we have to estimate it. The most common way to do this is to look at similar houses that have recently sold, and use them as a guide. Since no two houses are exactly alike, the calculation is tricky. Do NOT rely on automated online estimates such as Zillow’s Zestimate. Typically automated calculations just average the prices of similar size homes that have recently sold within a prescribed radius from your house. But what if your house is waterfront and the sold houses are not? Or what if your neighborhood is newer with more amenities than a neighborhood a half mile away? There are so many factors to consider that in order to get a realistic estimate the calculation should be done by a professional.
Licensed real estate agents estimate the fair market value of a property by doing a Comparable Market Analysis (CMA). With this method, the agent uses the Multiple Listing Service (MLS) to locate the three or more homes that have sold in the last 6 months that are the most comparable to your home. In this calculation the REALTOR® makes price adjustments to reflect the ways in which your home is different from each of the comparable homes they have chosen, and then they use those adjusted values to recommend a listing price. The CMA adjustments are very subjective. There is great variation between REALTORS® as to how much detail they include and the number and amount of the adjustments they make, so be sure to ask any prospective REALTOR® to explain their CMA in detail. Also, in our current market, where inventory is low and prices are quickly rising, it’s important that the availability and price of similar, currently listed homes is also taken into account.
Click here to request a no obligation, free CMA from Florida Coast Realty of Brevard.
Should I try to sell my home without a REALTOR®?
We’ll try to give you an unbiased answer here, but we are REALTORS®, so we can’t make any promises! If you are computer savvy, detail oriented, able to be objective about the value of your house, willing to spend time researching everything you need to know, and willing to deal directly with potential buyers, then attempting to sell your home “by owner” may be an option for you. (Download a comprehensive list of what a REALTOR® does when selling a home.) If you go this route, be sure to get a real estate attorney to review the contract and inform you of any potential concerns or pitfalls.
If you decide to try to sell your home on your own, We recommend that you still reach out to a REALTOR® to ask them to do a market analysis for you. Just be honest and tell them that you want to try to sell it on your own first – many REALTORS® will still be happy to assist you, not only because they know you will come to them if you don’t succeed, but also because you may refer them to a friend. Also, some of us (REALTORS®) will do it just because we are nice people!
What are some things to do before selling your house?
Have you ever moved into a new home with the intent of making a bunch of changes right away, and then find yourself years later debating whether you should actually make those changes before you sell your home? If so, you’re not alone.
The key is to determine what can make the biggest impact with buyers for the least amount of money. Generally buyers either want a move-in ready home or a bargain. So assuming your home isn’t a “fixer-upper,” you probably should put some effort and money into making it appealing. At Florida Coast Realty of Brevard, we provide home staging tips at the time of your free, no-obligation sales consultation. Be sure to check out our blog post describing some inexpensive home improvements that can make a big difference.
Can you buy and sell a house at the same time?
The answer to this question is “yes, but it’s tricky!” The reason that many home owners sell is because they want to upgrade or downsize into a different home. Most often in these cases the owner needs cash from the sale of their current house to finance the new one. This creates a logistical problem. Do you load everything into a big truck, clean the house, go to closing to get your money, and then drive you and your “stuff” to close on the purchase of the new home, all in the same day? Doable, but what if one of the closings is held up for some reason? Then you’re either homeless or you can’t meet your commitment of purchasing the new home on the day you committed to. There are several different ways to deal with this issue – check out this article to learn more.
How much are closing costs in Florida for seller?
The contract determines whether the buyer or seller pays each of the closing costs. The standard contract does come with a customary allocation of the costs, but those can be amended during contract negotiations. The information below is provided to show sellers how to calculate closing costs in Florida. In Brevard County it is customary for the seller to pay for the following:
- Doc stamps on the deed (which is a type of tax) will be .007 x the purchase price or $700 for every $100,000.
- An estoppel fee is paid to your Home/Condo Owners’ Association (HOA/COA) for the creation of a required letter disclosing the official balances in your account to be settled at closing. This fee is limited by law to $250, but additional fees may be charged to expediate the letter or if you have a past due balance in your account.
- Title Search/Exam fee is typically around $200. This involves the title company researching any claims against the property.
- Owner’s title insurance policy – this is an insurance policy provided to the buyer protecting them in case someone comes after closing and makes claims to the property. The fee for this insurance is calculated $575 for the first $100,000 of the purchase price and then .005 X the remaining purchase price. (Example: If the purchase price is $230,000 the title insurance cost would be as follows: $575 + (.05 X $130,000) = $1,225.
- Closing/Settlement Fee is paid to the closing agent for their services of coordinating all requirements and documentation involved in closing the sale. The closing agent is typically a real estate attorney or a title company. The amount charged for this can vary, so check rates before determining who you want to use as the closing agent. Typically fees that don’t involve an attorney run between $200 and $500.
- Brokerage Commission is broken into two parts – the amount going to the listing broker (your agent’s Broker) and the other part going to the the broker whose agent finds the buyer. The total commission and the breakdown of that commission is negotiable and is outlined on the listing agreement between the seller and the listing agent/broker. Be sure you understand not only the total commission but how much of that is going to the agent that brings the buyer.
- Broker Only Fee is an additional flat fee that your listing broker can assess. Most agencies these days charge this fee, but many do not – ask your prospective REALTOR® if they do. If charged, it is typically around $300.
- Other miscellaneous fees charged by the closing agent / title company may add up to another $100-$200.
- Also, if your buyer uses FHA or VA financing, there may be other costs you will be required to pay. This may add another few hundred dollars to the total.
Your best bet is to ask a REALTOR®, title company or attorney to estimate the charges for you. A REALTOR® will typically give you this estimate whenever they give you a proposal to sell your home. Click here to order an estimate of closing costs for your home.
How do I choose a REALTOR®?
Check out the “Choosing the Right Realtor®” page which answers this question and a lot more!