Closing Costs Explained
No surprises. Understand exactly what fees you'll pay at the closing table, whether you're buying or selling a home in Florida.
What Are Closing Costs?
Closing costs are the fees and expenses, over and above the price of the property, that buyers and sellers incur to complete a real estate transaction. In Florida, customs vary by county regarding who pays for what.
For Buyers
Typical Cost: 2% - 5% of Loan Amount
- Mortgage Fees Origination fees, application fees, and points paid to lower the interest rate.
- Appraisal Fee Paid to a third-party appraiser to confirm the home's value (~$400-$600).
- Home Inspection General inspection, wind mitigation, and termite inspection ($300-$600).
- Prepaids Upfront payments for property taxes, homeowner's insurance, and HOA fees.
- Title Insurance (Lender) Protects the lender against title defects. Required for mortgages.
For Sellers
Typical Cost: 6% - 9% of Sale Price
- Real Estate Commissions Commission paid to the buyer's and seller's agents (typically 5-6% total).
- Document Stamps (Doc Stamps) State tax on the deed transfer. In most FL counties, it's $0.70 per $100 of value.
- Title Insurance (Owner) Protects the new owner. Customarily paid by the seller in Palm Beach County, but varies elsewhere.
- Property Taxes Prorated share of taxes up to the day of closing.
- HOA Estoppel Fee Fee paid to the HOA to certify account status (~$250-$500).
Who Pays for Title Insurance?
A common point of confusion! In Florida, who pays for the Owner's Title Insurance Policy is determined by the contract and local custom.
Palm Beach County
Usually Seller Pays
Broward County
Usually Buyer Pays
St. Lucie County
Usually Seller Pays
Note: This is negotiable in any contract.
Need an Estimate?
We can provide you with a "Net Sheet" estimating your bottom line whether you are buying or selling.