Closing costs in Cape Coral. What are they? How much should I anticipate spending? When do I pay them? Who pays them?

These are common questions we receive from both Cape Coral homeowners and buyers. All closing costs are paid at the time of closing, not before with the exception of inspections, regardless if you are buying or selling a home. The amount of closing costs you pay also does not matter if you are a U.S. citizen or an international buyer (international sellers are subject to FIRPTA, Foreign Investment in Real Property Tax Act).

Typical closing costs that a home buyer can anticipate:

• Appraisal – $350+ (FHA/VA appraisals tend to cost $400-450)
• Survey – $300 +/-
• Loan costs (origination fee, credit report fee, application fee) – See your lender
• Points – 1 point equals 1% of the loan amount, ex $100,000 loan, one point is $1,000
• Prepaid interest – interest due on loan from day of close through end of that month
• PMI or private mortgage insurance – required on all loans except VA and those with 20%+ downpayment
• Inspections – termite $75+, home $300+, mold $300+
• Homeowners insurance – dependent on home, age of roof, flood zone but 12 months must be paid at closing
• Escrow set up – 3 months of property taxes and 3 months of insurance (in addition to the 12 months noted above)
• Flood insurance – if necessary and following the same guidelines as homeowners insurance
• Tax prorations – Property taxes will be based on the most recent tax bill and are prorated from the day of closing through the end of the year with seller paying from January 1st to day before close
• Title insurance – Lenders require a lender’s title policy to protect their interest

All of the costs listed above are the responsibility of the buyer and no one else. That does not mean that you cannot get your closing costs “rolled in” to your loan but it does mean that a seller has be willing and agreeable to that scenario. My advice is to be prepared with at least half of what you will need for closing costs plus your downpayment.

Typical closing costs that a home seller can anticipate:

• Transfer taxes/doc stamps on deed – $7.00/$1,000
• Owner’s title insurance policy – average title insurance rates $100 per $10,000
• Title settlement fee – I have seen this range from $200+
• Title search fee – $150 +/-
• Real estate commission – Negotiable
• Buyer credits – repairs and or closing costs (negotiable but not required)
• Property tax prorations – January 1st through day before closing

When selling your home make sure to follow up with your homeowners insurance company to cancel the policy and receive a refund for any portion of the paid policy premium.

About title insurance…he who chooses the title company pays. Huh? If the seller is choosing the title company they pay for the owner’s title policy. If the buyer chooses the title company they pay for the owner’s title policy.

While this is a comprehensive list outlining typical costs in a real estate transaction some brokerages charge additional fees. These must be disclosed up front and in writing prior to signing an offer or contract. We do not charge any transaction fees. Ever. Also, some of these rates are subject to change and will vary based upon service provider used. It is always best to verify information directly with the business in question.

Do you have more questions or are looking for specifics? Let us know! We can be reached at 239.541.5363

© Danielle Sharp | Sharp Homes Realty | danielle@allaroundthecape.com | Closing Costs in Cape Coral

Insuring a home in Cape Coral is different that insuring in other areas. Our weather is beautiful but can brutal on a home’s construction and mechanical components.

Aside from cost there are five things that you need to know about insuring your Cape Coral home. As a current or future homeowner knowing these things up front can save you money.

1. Four point inspection – If a home is 25 years or older it will be necessary when purchasing it to have a 4 point; the items looked over are air conditioning system, electrical, plumbing and roof. This is a separate cost from the actual home inspection.
2. Wind mitigation inspection – Any home built prior to 2002 will benefit from a wind mitigation (this also applies to re-roofing a home of any age) and will potentially provide you with wind credits on your homeowner’s policy. Savings can range from $200/year and up. Cost of wind mitigation is approximately $75/up and is only needed once.
3. Plumbing – Some types of plumbing will render the home uninsurable so it is very important to know what type you have and the general condition it’s in. PVC meets current code and copper is usually found in older homes. While copper is generally ok it should be checked at the joints for any leaks or severe corrosion.
4. Roof condition – Florida sun and rain is hard on asphalt shingles; most only last around 15 years and replacing a roof is anything but inexpensive here. A home with an older roof (13+ years) will usually require a 3 year roof certification to obtain a policy.
5. Electrical – Older homes were built with aluminum wiring and insurers are asking if there are any “double taps” or open sockets on the breaker panel. Any open sockets will have to be repaired prior to the insurance company binding your policy and must include all invoices, permits and photos.

Always have a licensed inspector/contractor verify condition for you. Some of these things can be determined prior to contract and inspection by looking under sinks for type of plumbing and verifying permit history with the city and county. Homeowners that wish to sell their Cape Coral property would benefit from verifying this information prior to putting your home on the market also. Knowing any defects or potential negotiating points can help in pricing, marketing and finance availability for potential buyers.