Buyers - Costs: What to Expect
1. Professional Inspections & Due Diligence
|
Service |
Estimated Range |
Notes |
|
General Home Inspection |
$350.00 - $600.00 |
Price varies by square footage & age of the home |
|
Wind Mitigation & 4-Point |
$150.00 - $300.00 |
Crucial in FL to secure & lower insurance premiums. |
|
Wood Destroying Organism (WDO) |
$100.00 - $250.00 |
Often called the “termite inspection”. |
|
Survey (Land/Boundary) |
$400.00 - $700.00 |
Generally not required for condos; highly recommended for houses. |
2. Florida State Taxes (The “Mortgage Taxes”)
Florida is one of the few states that taxes “indebtedness”. Cash buyer avoid these entirely.
o Documentary Stamp Tax on Notes: $0.35 per $100.00 of the loan amount
o Intangible Tax: 2 mills ($0.002) per $1.00 of the loan amount
Example on $400,000.00 loan:
· Doc Stamps: $1,400.00
· Intangible Tax: $800.00
· Total State Tax for Financing: $2,200.00
3. Financing vs. Cash: Closing Cost Comparison
Financed buyers typically pay 2%-5% of the purchase price in closing cost, while cash buyers often pay 1%-2%.
|
Fee Category |
Financed Purchase |
Cash Purchase |
|
Lender Origination Fees |
$1,000.00 - $1,500.00 |
$0 |
|
Appraisal Fee |
$500.00 - $800.00 |
$0 (Optional for Buyer) |
|
State Mortgage Taxes |
~0.55% of Loan Amount |
$0 |
|
Title Insurance (Owner’s) |
Variable (State-Set) |
Variable (State-Set) |
|
Title Insurance (Lender’s) |
~$25.00 - $300.00 Simultaneous Issue) |
$0 |
|
Recording Fees |
$150.00 - $300.00 |
$50.00 - $100.00 (Deed only) |
|
Prepaid Escrows |
3 – 12 months Taxes/Ins. |
$0 (Buyer handles directly) |
Note on Title Insurance: In many Florida counties (like Hillsborough/Tampa), the Seller traditionally pays for the Owner’s Title Policy. In others (like Miami-Dade/Broward), the buyer typically pays. This is a negotiable item in your contract.
4. Property-Specific Considerations
Condos & Townhomes
o Estoppel Fee: $250.00 - $500.00. This is the fee the HOA charges to provide a letter stating the current status of dues/assessments. Often paid by the seller, but sometimes a buyer cost.
o HOA Capital Contribution: Some communities require a one-time “contribution” to their reserve fund at closing (e.g., 2 months of dues).
o H06 Insurance: Condo interior insurance is significantly cheaper than full homeowners insurance.
Single-Family Homes
o Homeowners Insurance: Florida rates vary wildly by zone. Expect to pay to pay 1 full year upfront at closing.
o Elevation Certificate: May be needed of the home is in a high-risk flood zone ($200.00 - $400.00)
Summary of “Cash at Closing” estimates
For a $450,000.00 Purchase in Florida:
o Cash Buyer: Plan for approximately $5,000.00 - $8,000.00 in total costs (assuming Seller pays for the Title Policy).
o Financed Buyer (20% Down): Plan for approximately $12,000.00 - $18,000.00 (includes taxes, lender fees and 1 year of prepaid insurance/taxes).