|Use an actual HUD-1
settlement statement to
calculate your closing
One of the frequent questions I get is about closing costs. Here I have outlined the major expenses at closing.
The costs are different if you are buying or selling property. Regardless of whether you live in Sarasota, Charlotte, or Manatee Counties, the calculations of the costs are
exactly the same, as these are statewide taxes.
Remember, all non-recurring fees are negotiable, including which party pays for which costs, and title agent or attorney fees ($350 to $500). This information is
provided as a guide; I can recommend a qualified real estate attorney for your specific situation.
Home Warranty: $400-$600
Flood Elevation: $350
Septic Inspection: $150-$300
Home Inspection: $250-$500
application fee: $50-$100
Doc Stamps on Deed: This tax is calculated as the result of 70 cents on every
$100 of sales price. Learn more about FL closing costs
As part of the negotiation with the buyer, you may decide to agree to pay for
some of the traditional buyer's closing costs. The information for buyers would
apply to you as a seller if those fees/costs were negotiated as part of your
Title agent or attorney closing costs range in price from $300 to $500.
Additional fees may be incurred for financing or other legal agreements that
are added to the normal purchase and sales transaction.
Property Taxes: If the closing occurs before November 1, you as the seller
will be charged at closing for your portion of the annual property tax amount.
This will be applied as a credit to the buyer on the settlement statement. The
buyer will then be responsible for paying the entire property tax if they take
possession before November 1.
Broker Compensation: The compensation a seller pays to real estate agents
is considered part of the seller's closing costs. Broker compensation is
negotiable, and is itemized on the settlement statement. Broker
compensation typically comes from seller's proceeds at closing from the sale
of the property. Learn more about real estate fees.
Owner's Title Insurance: This varies based on sales price of the property:
- Up to $100,000: $5.75 per $1000 of purchase price;
- $100,000 to $1 million: $5.00 per $1000 of purchase price;
- Over $1 million to $5 million: $2.50 per $1000 of purchase price;
- Over $5 million to $10 million: $2.25 per $1000 of purchase price;
- Over $10 million: $2.00 per $1000 of purchase price.
Doc Stamps on Mortgage (or Note): This is a state tax that is calculated on the
loaned amount of your purchase, at a rate of 35 cents per $100 of mortgage
amount. Learn more about Doc Stamps
Intangible Tax on Mortgage (or Note): This is another state tax which is paid at
closing, at a rate of 20 cents per $100 of mortgage amount. Cash buyers do
not pay intangible tax. Learn more about Intangible Tax
Mortgage costs such as origination fees will appear on your settlement
statement as a buyer's cost to be paid at closing. There may also be additional
fees, such as doc prep ($75-$150), recording fees ($25-$50), and title search
Buyers will receive a credit on the settlement statement for the seller's portion
of the annual property taxes, if the closing occurs before November 1. The
buyer is responsible for paying the full tax bill for the current calendar year.
The items in the "other costs" box to the right are typical buyer's costs, usually
paid outside of closing. Not all of the inspections listed may be necessary
depending on the individual property.
flood insurance f.a.q