About Closing Costs for a Southwest FL Real Estate Purchase
In Southwest Florida, the largest closing cost fees for a real estate purchase are paid by the seller (title insurance policy and real estate commissions). But there are some costs buyers need to be aware of.
Here is a summary of estimated closing costs for a typical residential transaction:
- Recording of Deed: $60
- Pro-ration of property taxes for the calendar year (annual taxes are paid in arrears in Florida)
- Pro-ration of dues (HOA fees or similar)
- Property boundaries survey (if required by you or your lender): $400
- Professional property inspection: $350
- Appraisal, if required by you or your lender: $350
- Miscellaneous other fees: $150 to $300
- Transaction fee: $200
- Attorney Fees, if required by you or your lender
There are additional fees if you are taking out a mortgage:
- Documentary stamp on mortgage: 0.35 per $100 financed (e.g., on a mortgage of $250,000 the doc stamps are $875)
- Recording of Mortgage: $60
- Intangible tax on mortgage: .002 on mortgage amount (e.g., $500 on a $250,000 mortgage)
- Fees charged by your lender (processing fees, points, credit report, and so on)
The above estimates are a guideline; we’ll help you get a more specific estimate by providing you with a buyer’s “net sheet” before writing a purchase contract. Also, a week or a few days before closing, the title company provides a settlement statement (called a Closing Disclosure) that states all fees, to whom they are paid, and the final amount due at closing. Together, we review this carefully prior to closing.
A related question is how property tax in Southwest Florida works. Read about property taxes here.