Buyer's Closing Costs
| Fee | Typical Amount | Notes |
|---|---|---|
| Loan origination fee | 0.5-1% of loan | Charged by lender |
| Appraisal fee | $400-$600 | Required by lender |
| Title search and lender title insurance | $300-$1,000 | Protects lender |
| Owner's title insurance | 0.5-1% of purchase price | Protects buyer; often negotiable |
| Recording fees | $100-$300 | County deed and mortgage recording |
| Survey | $400-$800 | Sometimes required |
| Home inspection | $300-$600 | Strongly recommended |
| Prepaid insurance and taxes | Varies | Commonly collected before closing |
Seller's Closing Costs
| Fee | Typical Amount | Notes |
|---|---|---|
| Realtor commissions | 5-6% of sale price | Split between buyer and seller agents |
| Owner title insurance | 0.5-1% | Often paid by seller in Florida |
| Documentary stamp tax on deed | $0.70 per $100 of sale price | Seller typically pays |
| Prorated property taxes | Varies | Credit to buyer for taxes paid past closing |
| HOA/condo transfer fees | $100-$500 | If applicable |
Florida Documentary Stamp Tax
Florida imposes a documentary stamp tax on property deeds. The common rate is $0.70 per $100 of the sale price. For example, a $500,000 home would produce about $3,500 in documentary stamp tax.
How Much Cash Do You Need at Closing?
For a $400,000 home with 5% down, the down payment alone is $20,000. Add lender fees, appraisal, title charges, inspection, prepaid insurance, and prepaid taxes, and a buyer might need roughly $28,500 in estimated cash to close, not counting any escrow deposit already paid.
Tips to Reduce Closing Costs
- Shop title companies because fees vary.
- Ask lenders about no-origination-fee options.
- Close near the end of the month to reduce prepaid interest.
- Ask the seller for closing-cost credits when market conditions allow.
- Compare agent rebate options where legally and practically available.
References include the Florida Department of Revenue and standard Florida closing practices. Fees vary by county, lender, contract, and title company.
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