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What Every Homebuyer Should Know About Closing Costs

March 25, 2024 2 min read Brenda Bianchi

Closing costs are the financial surprise first-time Tampa Bay buyers most often underestimate. After 43+ years walking buyers through Florida closings, our team can tell you knowing what to expect — and budgeting for it — prevents the last-minute scramble that kills otherwise-clean transactions.

What closing costs are

Closing costs are the fees and expenses paid at closing — separate from the down payment — required to legally transfer ownership. They cover lender fees, title work, government recording, and third-party services.

Typical Florida closing costs

  • Lender origination fees
  • Appraisal fee ($500–$800)
  • Credit report
  • Title insurance and title services
  • Government recording and documentary stamps (Florida-specific)
  • Survey
  • Attorney fees (if used)
  • Underwriting fees
  • Prepaid escrow for property tax and insurance

How much to budget

Plan for 2–5% of purchase price. On a $400,000 Tampa Bay home, that is $8,000–$20,000. Most buyers land in the 3–4% range.

Who pays what

Some items are buyer-paid, some seller-paid, and some are negotiable. In Florida, sellers traditionally pay title insurance for owner’s policy and documentary stamps on the deed. Buyers pay lender fees and prepaids.

Reducing closing costs

  • Seller credits (negotiate during contract)
  • Lender credits (in exchange for slightly higher rate)
  • Down payment assistance programs (Florida Housing has several)
  • VA loans (no PMI, capped fees)

The bottom line

Closing costs are real but predictable. Plan for 3–4% of purchase price and you will not be surprised. Our team is happy to walk through specific numbers for your target Tampa Bay home.

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