Costs of Buying, Holding and Selling Naples Real Estate

Cost of Buying

The cost of buying property varies by county within Florida. For instance, the cost of buying in the Naples area (Collier County) is different than buying the Lee County (Bonita Springs, Ft. Myers) area. For the Naples area, the single largest expense related to purchasing a home is title insurance.

Paying the cost of title insurance is the responsibility of the buyer and insures the buyer against loss, if it is subsequently discovered there was a defect in the title. If the buyer is getting a mortgage, then the lender will require title insurance. If the buyer is paying cash, then it is up to them. But most cash buyer do not take the risk of closing without title insurance.

Description of Item	Approximate Range + or -
Title Insurance Premium - A one-time premium. Insures marketable title of the property against loss or damage from defects to the title. Minimum rates are promulgated by the State of Florida based on price of property.	A little more than 0.5% of the purchase price.
Lending Fees - If borrowing, includes lending charges and property appraisal.	$1,200
Mortgage Tax - If borrowing.	.35% of the mortgage amount
Title and Closing Costs - Deed preparation, closing coordination, recording fees and other misc. fees charged by title or closing company.	$600
Transfer Fees - If the property is part of a homeowners association (HOA) a transfer fee may be charged by the HOA. These frees can range from $100 for a low frills community, to $2,000 for a golf community for example. But could be more depending on the community.	Varies
New Construction - Buyers are normally required to pay the state transfer tax of 0.7% and other misc. charges assessed by the builder.	.7%+
Home Inspections - Recommended inspections when buying a single family home or condo include general inspection, pool inspection (if there is a pool), mold inspection, radon inspection and termite inspections (single family home). Inspection fees vary by the size of the home.	$200 for basic to $1,000 plus for the works.

Cost of Holding

Costs relating to holding the property would include:

Description of Item	Approximate Range + or -
Property Tax - 1.2% based on the homes value. When the home is purchased, the value is normally adjusted to the purchase price.	1.2% of value
Fees - The property might reside within a Home Owner's Association, a condo association or both. The greater the fees the nicer the amenities and the more the HOA does for the homeowner (such as lawn maintenance).	$200 month for basic no frills, to $1000+ a month for high end services and amenities.
Insurance -Insurance varies greatly by the property's location, its size, when it was built and many other factors. For condos the insurance on the building is included in the fees. Example: Newer built home, away from beach area, 2,000 sq. ft. insurance is approx. $2,500.	Varies
Pool Service - For typical private pool.	$80/month
Home Watch Service - Service for second home owners. Watch service checks on the home weekly.	40

Costs of Selling

Costs related to selling in Naples include:

Description of Item	Approximate Range + or -
Realtors Commission	Call Me
Repairs - Repairs required as a result of the buyer's inspections. If the seller does not want to correct, then the buyer can walk from the deal.	Depends on results
State Transfer Tax - The state of Florida charges the seller a transfer tax of .7% of the purchase price.	.7%
Closing Costs - Deed preparation, closing coordination, recording fees and other misc. fees charged by title or closing company.	$300