Closing costs in Florida can be a significant expense — often the second-largest cost after the down payment for buyers, and the largest expense after commission for sellers. Here's a detailed breakdown of what to expect.
Buyer's Closing Costs (Financed Purchase)
Buyers typically pay 2% to 5% of the purchase price in closing costs. In South Florida's higher-priced market, these are real numbers:
- Loan origination/lender fees: $1,000–3,000 (varies by lender; can be rolled into rate or negotiated)
- Appraisal fee: $400–700
- Credit report fee: $25–75
- Flood certification fee: $15–30
- Title search fee: $150–300 (paid to title company for searching records)
- Lender's title insurance: varies by loan amount; see title insurance article for rate schedule
- Doc stamps on mortgage: $0.35 per $100 of loan amount
- Intangible tax on mortgage: $0.002 per $1 of loan amount ($2 per $1,000)
- Recording fees: $10–15 per page of documents recorded with the county; typically $150–300 total
- Survey: $400–700 if required by lender (not always required for condo purchases)
- Home inspection: $300–600 (paid before closing, during inspection period)
- Homeowners insurance (first year premium): varies widely ($2,000–8,000+ in South Florida)
- Property tax escrow impound: lender collects 2–3 months of estimated taxes to establish escrow account
- Homeowners insurance escrow impound: 2–3 months collected by lender
- Prepaid interest: interest from closing date to end of month (typically 1–30 days)
Buyer's Closing Cost Example
For a $450,000 home purchase with 20% down ($90,000 down, $360,000 loan):
- Loan fees: ~$2,000
- Appraisal: ~$500
- Title/lender's title: ~$1,500
- Doc stamps on mortgage: ~$1,260 ($360,000 × $0.0035)
- Intangible tax: ~$720 ($360,000 × $0.002)
- Recording and other fees: ~$400
- Prepaid items (insurance, taxes, interest): ~$5,000–8,000
- Total estimated buyer closing costs: $11,000–14,000
Seller's Closing Costs
- Real estate commission: Typically 2.5–3% to buyer's agent + listing broker fee (negotiated with your broker)
- Doc stamps on deed: $0.70 per $100 of sale price (e.g., $3,150 on $450,000 sale)
- Owner's title insurance: Customary in Broward County for seller to pay; cost based on purchase price (see title insurance article)
- Prorated property taxes: Seller pays through their last day of ownership
- HOA estoppel fee: $100–300 (paid to HOA for payoff/status letter)
- HOA transfer fee: Varies by community
- Home warranty (optional): $400–800 if offering as a buyer incentive
- Payoff of existing mortgage: If a mortgage exists, it's paid at closing
Net Sheet vs. Gross Price
Your real estate agent should provide you with an estimated net proceeds sheet (often called a "net sheet") showing your estimated profit after all selling costs. Always ask for this early in the process so you can plan accordingly.
Lender's Good Faith Estimate: Federal law (TRID) requires lenders to provide a Loan Estimate within 3 business days of receiving your mortgage application. This document itemizes all loan-related closing costs so you can compare lenders. Always compare at least 3 Loan Estimates before choosing a lender.
Questions about your situation? Contact HP Singh at Coastal Group Brokers.