|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. 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: $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
In the current buyer's market, as part of the negotiation, you may also 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 purchase contract.
Property Taxes: Property taxes will be prorated for the length of time the seller
has owned the property during the current calendar year. Florida property
taxes are paid in arrears. Tax bills are usually mailed on our around
November 1. If the closing occurs before November 1, the buyer receives a
credit on the settlement statement for the seller's portion of the annual tax
amount. The buyer will be responsible for paying the full tax bill for the current
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. Learn more about
There may also be additional fees, such as doc prep ($75-$150), recording
fees ($25-$50), and title search fees ($200-$300). Costs associated with your
mortgage are also included on the settlement statement.
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 currrent calendar year.
flood insurance f.a.q