Home Buying in Estero>Question Details

Adp, Home Buyer in Estero, FL

I am a first time buyer paying cash. What fees or closing costs will I be responsible for, if any?

Asked by Adp, Estero, FL Tue Feb 14, 2012

Help the community by answering this question:


You have gotten some very good answers below. My thoughts on the appraisal is that if your Realtor will give you a good CMA for the property you are purchasing, that should give you a good idea of the value. Having a "subject to appraisal" clause in the sales contract will also protect you in case you have an appraisal and it comes in lower than the purchase price.
I would love to help you find your first home. Please give me a call.
Marge Bennnett
REA/MAX Realty Group
1 vote Thank Flag Link Wed Feb 15, 2012
If your home is over $75K, your homestead exemption is $50k, not 25. makes about $1000 difference in your taxes. The wind mitigation report just saved up $1000 a year on our insurance, so it is well worth the fee which could easily be more than Sarah quoted. Home inspections, termite inspections, surveys and title insurance are well worth the money invested.
0 votes Thank Flag Link Sat Feb 18, 2012
ADP.....I live and specialize in Estero.....if you would like I can certainly help you in your search. Your closing costs can vary though. There is no definitive answer.....a lot of the communities in Estero have transfer fees which could be into the few thousand dollar range depending on where you buy. Hope to hear from you.

0 votes Thank Flag Link Sat Feb 18, 2012
Hi Adp, You will need to pay a minimum of $1000 for your escrow deposit when you make your offer. It can be in the form of a check or wire transferred with in 3 days of the seller signing your offer. This will come away from your purchase price. You will be given up to 15 days to have a home inspection ($275). I would recommend a wind mitagation ($50) at the same time because it will save you money on your home insurance. Home insurance will vary from $1000 a year and up. Your property taxes will be prorated for the year and the new bill doesn't come out til 11/1. Taxes can be as low as $300 per year and on up depending on location and assessed value of the home. The tax collector allows you to pay annually and quarterly. If you will be a full time resident then you can file for homestead exemption of $25K off your assessed value and get a HUGE discount. You will need to pay for your owners title insurance policy (1x) which will very on the amount of the purchase but if you plan on $400 - $500 you'll be close. There will be some filing fees $130 - $170. Other expenses will include a deposit for your electric to be turned on. This could be $150 or more if you have never had a local account. If you will be in an area that you a charged for water and sewer then the utility co. will want a deposit also. Please anticipate costs for locks to be changed, light fixtures, painting, plumping repairs, etc. There are very few homes in perfect condition.

Since you are a cash buyer you will not have to have a termite inspection, appraisal or survey if do not want them.

I am very happy to help you as a buyers agent if you have not chosen someone to work with. The seller pays all my fees so you have no other expenses with working with me. Please check out the website below which will give you access to our Florida Gulf Coast MLS.

Sarah Garrett, Realtor
"Chosen Best in Client Satisfaction 2006- 2011" by Gulfshore Life Magazine
Cell: 239-464-8620
email: sarahgarrett@argfl.com
Web Access to MLS:
0 votes Thank Flag Link Wed Feb 15, 2012
Also if paying ALL CASH it's crucial to hire an attorney to review the title insurance policy and your closing documents. When getting a mortgage the lender's underwriter will review the title insurance committment. It would be well worth the $500 for an attorney review. Also if you're buying a Short Sale or a "flip" property where the owner has not owned it for very long you truly need an attorney to review the title insurance policy to make sure you do no have any unusual "exceptions".
0 votes Thank Flag Link Wed Feb 15, 2012
I must applaud you for having the capacity to purchase your first home with cash. However, when you use a lender, they often require certain services be performed to ensure that the home is qualified for their loan, but they are not required if you pay cash. I recommend that you perform these services if you are paying cash:

Home Inspection- ($250-$500 depending on tests) termites (WDO), mold, and chinese drywall (if new construction between 2004-2008)
Survey- ($275?) For a single family home if the current owner cannot provide one.
Appraisal- ($300?) Not all Realtors will agree, but a good appraiser may uncover something you missed and save you money in the long run.
The major costs for the buyer in a home purchase are usually related to the loan. If you are paying cash certain additional costs like Title iInsurance, transfer fees, various condo and maintenance fees and prorations may apply. A good realtor can help you estimate all the costs before you make an offer.

I can offer you a FREE guide for first time home buyers, "Your First Home: The Proven Path to Home Ownership" . Request one at the web referenc below.

Good luck on your first home purchase!

John Fee
Keller Williams Elite Realty
(239) 776-0539
0 votes Thank Flag Link Wed Feb 15, 2012

Everything is negotiable. Depending on your contract you could pay zero closing costs or pay more than is typical.

A local Estero Realtor can give you a very good idea of the costs involved based on your price and type of property. Condos have application fees, HOAs may also have Capital Contribution fees, if there is a Community Development District you may owe the current owner a prorated amount if it has been pre-paid with the seller's taxes, State Intagible Taxes, Owners Title Insurance Policy, the list goes on and on.

All the best,
Alma Rose Kee PA
Future Home Realty
0 votes Thank Flag Link Wed Feb 15, 2012
Peggy Wagner below gave you a very detailed answer, though not all of the items listed are required with a cash closing, it depends on what you may want done.

I would suggest that at a minimumn, you'll have the following expenses:
Home Inspection, Pest and Termite Inspection, Appraisal (not reuqired but smart to have one done, do not under any circumstances give them a copy of the contract, have the appraiser go in blind for an honest assesment of the value), lawyer or title and abstract company to handle closing, Title insurance (a one time fee) Homeowners insurance. Proration between you and the Seller for property taxes and or HOA fees if any, fuel prorations if any, a survey, recording fees.

Hope this hleps and happy house hunting.
0 votes Thank Flag Link Wed Feb 15, 2012
Dear Adp, To answer your question more directly, here is the wording taken directly from the Florida Realtors/Florida Bar As Is Contract:
Taxes and recording fees on notes and mortgages, Recording fees fro deed and financing statements, Owner's Policy and Charges, Survey (and elevation certification, if required), Lender's title policy and endorsements, HOA/Condominium Association application/transfer fees, Loan expenses, Appraisal fees, Buyer's Inspections, Buyer's attorneys' feeds, All property related insurance, and Other (anything else that has been agreed upon in the Sales Contract.

Sounds like a lot and it definitely can be. Some of them might be paid by the buyer OR the seller, depending on how the contract has been written. If you have further questions or would like to discuss any of the above, I'll be happy to help. Just contact me directly.
0 votes Thank Flag Link Wed Feb 15, 2012

What does your buyer broker say?

If you don't have an agent and want to enguage my services, we can discuss it.

Otherwise, best of luck.

Kevin Cloutier
Southern Premier Realty
0 votes Thank Flag Link Wed Feb 15, 2012
Do you have a buyer's agent? You should ask them this question. The fees and closing costs will vary by property, and really are best determined by the title company.
0 votes Thank Flag Link Tue Feb 14, 2012
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