Typical Closing Costs in Florida

Buying a home in Florida

So you want to buy a home in Florida. In fact, you found your dream home. Should you offer buy the property using an “as is” contract? Although an ‘as is” contract would not require the seller to pay for repairs, termite damage, and outstanding permits, it is important for the buyer to know if there are issues associated with the property they are buying.

Closing Costs

Closing costs are the expenses, over and above the purchase price of the property that buyers and sellers normally incur to complete a real estate transaction. Closing costs can vary based on a number of factors including, but not limited to items like financing costs and property type.

Seller Closing Fees

Although everything is negotiable, the typical costs associated to the seller include: real estate commissions, transaction fees (additional commission), taxes on the deed, recording fees to cure title, settlement or closing fees, repairs and permits with a typical allowance of 1.5% of the purchase price for warrant items [1](i.e. non-leased major appliances; heating, cooling, mechanical, electrical, security, sprinkler, septic, and plumbing systems; seawall; dock; and pool equipment, structures (including roofs, doors, and windows). Seller does not warrant and is not required to repair cosmetic conditions, unless the cosmetic condition resulted from a defect in a warranted item. "cosmetic conditions" means aesthetic imperfections that do not affect the working condition of the item, including pitted marcite; tears, worn spots, and discoloration of floor coverings/wallpapers/window treatments; caulking in bathroom; nail holes, scratches, dents, scrapes, and chips in ceilings/walls/flooring/tile/fixtures/mirrors; cracked roof tiles; curling or worn shingles; and minor cracks in floor tiles/windows/driveways/sidewalks/pool decks/garage and patio floors[2], 1.5% of the purchase price for wood-destroying organism treatment and repairs; and 1.5% of the purchase price for costs associated with closing out open permits and obtaining required permits for unpermitted existing improvements.[3]

Buyer Closing Fees

Some of the typical buyer closing fees include recording fees on the deed and financing statements, loan expenses including origination fees, credit reports and appraisal fees, lender’s title policy, property (home) and termite inspections, survey, flood insurance, homeowner’s insurance, and hazard insurance. These fees are negotiable. FHA Loans have higher than typical closing fees and it is common to ask for at least 3% of the closing costs, prepaids, and non-allowables.

Prorations

Prorations are assessed proportionately between buyers and sellers. An example of an item that should be prorated includes real estate taxes, insurance, and homeowner association (or condominium association) fees.


[1] Lines 75-76, Florida Association of REALTORS®, CRSP-13

[2] Lines 196-201, FAR

[3] Lines 76-79, FAR

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