Understanding the Costs of a Transferable Building Allocation
So, you want to build a home in Marathon, Florida, and you’re thinking about buying a Transferable Building Right (TBR) because you don’t want to wait forever in BPAS. However, you’re not sure what the cost will be.
Total Cost Breakdown of a Transferable Building Allocation
Well, you’re in luck because today we will cover the total cost of purchasing a Transferable Building Right (TBR) for the City of Marathon.
- The average cost of a Transferable Building Allocation in Marathon, Florida, has been around $200,000. However, in the past few months, we’ve seen more Transferable Building Allocations come on the market. As a result, prices have fluctuated between $170,000 and $220,000
- Check out the TBRs for sale in Marathon (Please note, these listings are not on Zillow)
Additional Fees
- Now, with TBRs in Marathon, there is a $40,000 transfer fee. This fee is set by the City of Marathon, so there are no discounts on it!
- When you’re buying a TBR, you have to look closely at each one. Some transferable building allocations will indicate that the $40,000 transfer fee has already been paid. So, you could save some cash depending on the list price. However, some sellers just charge a higher list price, so there might not be any real savings.
Closing Costs
- The second thing you need to understand is that most sellers require buyers to cover ALL closing costs, including commissions. You may see language in the description stating “buyer to pay all closing costs and seller to net $200,000.”
- As always, commissions are negotiable. However, in Marathon, most real estate agents charge a 10 percent commission on TBRs. Not every agent charges this rate, so feel free to call us for more details. Since sellers typically request buyers to cover ALL closing costs and buyers have been complying, sellers have often agreed to the 10 percent commission.
Detailed Estimate
Here is an estimate of the cost of a Transferable Building Allocation at a sale price of $200,000:
- Contract sales price: $200,000.00
- Application Fee: $600.00
- Settlement Agent Fee: $2,000.00
- Recording Fee: $300.00
- Document Stamps: $1,400.00
- City Transfer Fee: $40,000.00
- Commission: $20,000.00
Total Estimate: $264,300.00
Finding the Right TBR
If you’re on the hunt for a Transferable Building Allocation, make sure to carefully review each one to understand the true costs involved. With numerous allocations on the market offering different scenarios, finding the most economical option can be a bit tedious. However, as your agent, we would be happy to handle this process for you.
Contact Us
If you have any questions about Transferable Building Allocations or building in the Keys, feel free to reach out anytime.
Learn More About Building in the Keys Here
Amy Prumo – 310-384-5647
[email protected]
Amy’s success as a Florida Keys Elite Agent and Diamond Award Winner is truly awe-inspiring. With over a decade of experience in the real estate industry, she has cemented her position as a trailblazer and pioneer. Her unwavering commitment to excellence is reflected in her impressive academic credentials, which include a Master’s Degree in Marketing and Management. Amy’s marketing programs are simply unmatched, ensuring that your property is showcased to the widest audience of potential buyers, thus guaranteeing maximum exposure.
