Real Estate Transaction Costs - Naples Area

What is the actual cost to purchase real estate in the Naples Florida area? The cost related to purchasing real estate depends on: purchase price, cash or mortgaged transaction, existing or new construction, lender requirements, homeowners association fees and many other factors. The "cost of the transaction," is not the same as the cash needed at time of settlement (closing). At settlement, all monies related to the transaction are paid. In addition to closing costs, additional amounts may be needed for escrow, prepaid and other agreed upon items.

Cost for Cash Buyers

If you are a cash buyer, then the costs related to buying property in Florida can be nominal. A cash buyer would only need to pay minor processing and recording fees. While not required, cash buyers are strongly recommended to have various property inspections, title insurance and other transaction related services.

Financed Buyers

When you are financing your purchase with a mortgage, you will incur various charges required by the lender, and taxes based on mortgage amounts. The following chart can be used as a guide for approximating the customary cost of buying real estate in Collier county, when the purchase is 80% financed (i.e. 20% down payment). Note: Each real estate purchase is unique, buyers and sellers can agree to pay for things contrary to customary norms, a good faith estimate of costs can only be prepared based on the terms of the contract and accounting for all items impacting the cost of the transaction.

Real Estate Transaction Costs
Collier County - Mortgaged Financed 80%
Multi-Unit Resale
(FOR INFORMATION & DISCUSSION PURPOSES ONLY)

Purchase Price	Title Insurance Premiums	Taxes & Recordings Fees	Other Fees (See Below)	Total Cost of Transaction
$ 125,000	$ 700	$ 700	$ 2,200	$ 3,600
150,000	825	810	2,200	3,835
175,000	950	920	2,200	4,070
200,000	1,075	1,030	2,200	4,305
250,000	1,325	1,250	2,200	4,775
300,000	1,575	1,470	2,200	5,245
350,000	1,825	1,690	2,200	5,715
400,000	2,075	1,910	2,200	6,185
450,000	2,325	2,130	2,200	6,655
500,000	2,575	2,350	2,200	7,125
600,000	3,075	2,790	2,200	8,065
700,000	3,575	3,230	2,200	9,005
800,000	4,075	3,670	2,200	9,945
900,000	4,575	4,110	2,200	10,885
1,000,000	5,075	4,550	2,200	11,825
1,500,000	6,325	6,750	2,200	15,275
2,000,000	7,575	8,950	2,200	18,725
	© Tom Doyle, Realtor 239.641.4575
Note: Many of the above costs can be added to the basis of the property for tax purposes - Discuss with tax advisor.

Description of Transaction Costs	Approximate Range
Title Insurance Premiums - 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.	See Above
Taxes & Recording Fees - Taxes based on the amount of the mortgage, and recording mortgage and deed documents.	See Above
Title Processing and Closing Fees - Charged by title company and/or closing company.	$ 350
Property Inspection - An independent inspection of the property by a qualified professional. May or may not be required by lender, but is always considered good practice	300
Property Appraisal - Required by lender to determine the maximum lending amount.	300
Survey -Approximately $350, generally not required for condominiums or new homes from builders.	-
Lender Fees - Fees to the lender for processing the loan - varies by lender and type of loan.	750
Transfer Fees - If the property is part of a home owners association (HOA) a transfer fee may be charged by the HOA. These frees can range from $100 to several thousand dollars.	-
Misc. Fees - Including delivery charges and other minor transaction fees	500
Other Fees	$2,200 +