Hi, Does the buyer pay the 7% Florida sales tax on a home? What is approximately closing cost on 50000 home?

Asked by Stanley A Studniarz, Lehigh Acres, FL Mon Aug 10, 2009

This question is about this property: http://www.trulia.com/property/1084053845-19029-Us-Highway-1…

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Pamela Cohn, Agent, Clearwater, FL
Fri Aug 14, 2009

All good answers. General Rule of thumb to estimate-closing costs and "pre-paids" not including your down payment run 5-6% of the Sale price, unless certain costs have been negotiated by one side or the other in your contract, if you are financing. Many of the costs are loan related, thus a cash deal would have lower closing costs.

Pre-paids could include your homeowners insurance, property taxes and HOA fees. Varying amounts will be included, according to you loan requirements.

This is one of the reasons it is good to sit down with a lender, discussed what funds you have available and get a good idea of what you can afford on a monthly basis to see what it will buy and then have your agent set up a search customized to your needs. Good luck.

Pam Cohn
Broker Associate GRI,CDM
Prudential Tropical Realty
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David Kimpton, Agent, Safety Harbor, FL
Mon Aug 10, 2009
Dear Stanley - To answer your question about the 7% Florida sales tax - There is no 7% sales tax on any house sale that has land. If you are buying a mobile without land all bets are off on what your closing costs would be. There are a lot of other taxes as Andrew pointed out. Andrews answer is just about right on. But so is Mark's - it depends on what you say in the contract. You will have to factor loan costs if you are buying the house with a mortgage. Is this a foreclosed deal? Is the title clean and no liens? Could cost you more.
And don't forget the cost of the home inspection and wind mitigation inspection and if the house is quite old you could have an occupancy inspection. Probably all told around 450 - 500. Paid for as delivered. Termite inspection will be around 60 bucks. By the way you could forego the home inspection - big mistake - but if you want house insurance then the wind inspection might be required.
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Mark Bjorkman, , Lutz, FL
Mon Aug 10, 2009
Andrews answer is closer to what you'll need in above your down payment. I didn't figure in Appraisial, Survey and Title Insurance.
Web Reference:  http://www.LuxorDreams.com
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Mark Bjorkman, , Lutz, FL
Mon Aug 10, 2009
It's hard to know what the closing cost is with out know what you agreed to in the contract you have with the seller. Your looking at probably around $1,500 for closing cost, but it really depends on what you and the seller agreed to.
Web Reference:  http://www.LuxorDreams.com
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thelendingte…, Mortgage Broker Or Lender, Clearwater, FL
Mon Aug 10, 2009
Generally the seller will pay your deed stamps. That is .007 x the sales price or $350 in thsi case.

Some other costs could be paid by the seller as well. Here is a breakdown of recording and title fees associated witha closing. By no means is this a comprehensive list because every loan scenario and lender is different but this covers the main items.

Title ins = $5.75 / 1,000 for the 1st hundred thousand of coverage
ALT A endorsements = 10% of the title policy cost or $100 whichever is more
Survey and apprasal - You will definitely need an appraisal whihc is any where from $350 -$400
Recording fees - The average recording fee is $155-$180
County Fees - are .002 x the loans amount
State stamps are .0035 x the loan amount

I would guess that you would nee dto have the down payment plus around 2500. That is probably a bit higher than the actual amount but if you plan on that you will be fine.

If you need a pre approval please call Andrew at 727-331-8400
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