When buying or selling a home in Florida, it’s often easy to overlook closing costs. These are the fees and expenses that both buyers and sellers pay at the time of closing, and like other aspects of the transaction, they should be considered. Understanding how to estimate these costs can help you better prepare financially to avoid any last-minute surprises.
What Are Closing Costs?
Closing costs include a variety of fees related to the transfer of property ownership. Florida is one of the most expensive states for closing costs and a large portion of it goes to doc stamps and transfer and recording fees. Closing costs typically range between 2% and 5% of the home’s purchase price for buyers, while sellers often pay more due to commission fees.
Common Closing Costs for Buyers
Buyers in Florida can expect to pay for several key expenses, including:
- Loan Origination Fees
- Appraisal Fees
- Home Inspection Fees
- Title Search and Title Insurance
- Prepaid Property Taxes and Homeowners Insurance
Common Closing Costs for Sellers
Sellers generally pay more in closing costs, including:
- Real Estate Commission
- Title Insurance (Owner’s Policy)
- Prorated Property Taxes
- HOA Fees
How to Estimate Closing Costs
To get an accurate estimate of your closing costs, use the following tools:
- Use Online Calculators: many real estate websites offer Florida-specific closing cost calculators
- Consult with a Realtor or Lender: professionals can provide a breakdown of expected costs based on your transaction
- Review Loan Estimates and Seller’s Net Sheets: buyers receive a loan estimate, while sellers can request a seller’s net sheet to see expected expenses
Closing costs in Florida can add up, so it’s essential to budget accordingly. Buyers should anticipate 2% to 5% of the purchase price, while sellers should prepare for commission fees and state taxes. By understanding these costs upfront, both parties can avoid surprises and ensure a smooth closing process.
Our office handles real estate closings, is attorney-based, and is competitive on title related fees. Please contact us for more information on closing costs, or complete legal representation in the areas of real estate law.
The Law Office of Donna Hearne-Gousse
(561) 582-5670