“How much will my closing costs be?” This is a common question that we receive from many of our clients here in South Florida. Of course, just like everything else in this economy, the price tag has risen. Recently, ClosingCorp, a provider of residential real estate closing cost data and technology, provided some updated data. For the closing-cost calculation, ClosingCorp included the lender’s title policy, owner’s title policy, appraisal, settlement, recording fees, land surveys and transfer tax, based on CoreLogic data. At the national level, closing costs have increased by 10.5% year-over-year. This is equivalent to $7,000 for the average priced home throughout the country.
The Sunshine State
In Florida, typical closings costs for the averaged priced home are higher at $8,500. The average Florida home price used for this analysis was $368,560. Based on this average home price, total closing costs including taxes were $8,551. If taxes are backed out, it’s $4,484. Ultimately, this puts the average closing costs in Florida at 2.32% of the home’s purchase price, which puts The Sunshine State ranked #8 in the nation. As for the nation’s top 5 highest and lowest closing costs states, we list them below.
Highest closing costs (including taxes)
- District of Columbia ($30,352)
- Delaware ($17,831)
- New York ($17,582)
- Washington ($13,909)
- Maryland ($12,056)
Lowest closing costs (including taxes)
- Missouri ($2,102)
- Indiana ($2,193)
- North Dakota ($2,321)
- Kentucky ($2,355)
- Wyoming ($2,509)
Summary
The average home price across the country increased by almost $45,000 year-over-year. While this is a significant figure, the closing costs, excluding taxes, on the average property only increased by $400. Therefore, closing costs as a percentage of purchase prices declined this year, going from 1.06% of the transaction in 2020 down to 1.03%. It is important to note that these figures do not include potential real estate commissions paid on transactions. Although Florida came in ranked #8 in the nation for typical closing costs, it is important to remember that The Sunshine State also lacks a state income tax. Therefore, we are continuing to see an incredibly high demand from home buyers moving to paradise.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!
