What Are Closing Costs and How Much Are They? A Guide for St. Augustine Buyers and Sellers

If you’re buying or selling a home in St. Augustine, Hastings or anywhere in St. Johns County, the purchase price is only part of the picture. On closing day, both sides also pay a set of fees and taxes known as closing costs. Knowing what to expect ahead of time makes for a calmer, more confident closing, and that’s exactly what we want for every customer.

What are closing costs?

Closing costs are the fees, taxes and prepaid expenses needed to transfer a property from seller to buyer and, if there’s a loan, to set up the mortgage. They’re itemized on your Closing Disclosure (if you’re financing) or settlement statement, which you’ll receive before closing so there are no surprises.

How much are closing costs in Florida?

For buyers using a mortgage, closing costs in Northeast Florida typically run about 2% to 5% of the purchase price, with many financed purchases landing around 2.5% to 4%. Cash buyers pay considerably less, since there are no lender fees or mortgage taxes.

Sellers usually pay a different set of costs. Their largest items are typically the real estate commission and Florida’s documentary stamp tax on the deed.

What buyers typically pay

Lender costs (if financing)

Loan origination or underwriting fees
Appraisal and credit report
Lender’s title insurance policy
Any discount points you choose to buy down your rate

Florida taxes on the mortgage

Documentary stamp tax on the note: 35¢ per $100 of the loan amount
Intangible tax: 0.2% of the loan amount

Title, survey and recording

Title search and closing/settlement fee
Survey
Recording fees for the deed and mortgage

Prepaids and escrow

Homeowner’s insurance (often the first full year, plus a cushion in escrow)
Property tax escrow
Prepaid interest from closing day to the end of the month

In Florida, homeowner’s insurance can be one of the larger items, so we always recommend getting insurance quotes early, ideally as soon as your offer is accepted.

What sellers typically pay

Documentary stamp tax on the deed: 70¢ per $100 of the sale price
Owner’s title insurance policy: in St. Johns County and most of Northeast Florida, the seller customarily pays this, though it’s negotiable and set by your contract
Real estate commission, as agreed in your listing agreement (commissions are always negotiable)
Payoff of any existing mortgage or liens
Prorated property taxes for the part of the year you owned the home (Florida property taxes are paid in arrears, so this usually appears as a credit to the buyer)
HOA or condo estoppel letter fees, if applicable

A quick example

Say a home in St. Johns County sells for $400,000 and the buyer finances $320,000 (20% down):

Seller’s deed doc stamps: $400,000 ÷ 100 × $0.70 = $2,800
Buyer’s mortgage doc stamps: $320,000 ÷ 100 × $0.35 = $1,120
Buyer’s intangible tax: $320,000 × 0.002 = $640

Add lender fees, title, survey, insurance and escrow, and this buyer’s total closing costs would likely fall somewhere between about $8,000 and $20,000 (2% to 5%), depending on the loan, insurance and closing date.

Want a personalized estimate? Our friends at St. Johns Law Group offer a free Florida Closing Cost Calculator that estimates a buyer’s cash to close or a seller’s net proceeds. It’s a great starting point before you talk with us or your lender.

Ways to reduce or plan for closing costs

Ask for a Loan Estimate early and compare lenders. Fees vary more than most people expect.
Negotiate seller concessions. In the right market, a seller may agree to contribute toward the buyer’s closing costs.
Shop homeowner’s insurance before you’re under contract if you can.
Choose your closing date thoughtfully. Closing later in the month reduces prepaid interest.
Ask about first-time buyer and down payment assistance programs if you qualify.