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Old 10-03-2014, 02:47 PM
 
37 posts, read 48,659 times
Reputation: 19

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My husband and I recently saw a house we were interested in purchasing in the low 300's. We met with a mortgage banker and were quoted closing costs of between $10,000-$12,000, which seemed high to us; however, other houses which we've purchased over the years have not been inew construction nor in this state. Would appreciate any input on whether or not this is a average amount on closing costs. Thanks in advance.
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Old 10-03-2014, 04:19 PM
 
Location: Lakewood Ranch, FL
5,439 posts, read 8,500,627 times
Reputation: 6573
Seems high but it is hard to say without seeing what they did. For new construction, the builders usually have a couple of preferred lenders and they tie incentives into the buyer's choice to use them. It is good to talk with other lenders but you should definitely explore any deals thru the builder. Also, it is typical for the 7% doc stamps on the deed to be paid by the buyer for new construction but for resales, it is the seller who pays that fee.

Also, some fees are not negotiable but some are and talking with a few lenders about the fees might actually save you hundreds of dollars. One last thought...there are charges and there are pre-paid amounts for things like taxes, HOAs, insurance, etc. so don't just look at the bottom line. Understand what the numbers are and where they come from.

Last edited by bbronston; 10-03-2014 at 04:28 PM..
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Old 10-03-2014, 05:53 PM
 
Location: Naples & Sarasota Florida
597 posts, read 998,329 times
Reputation: 898
Quote:
Originally Posted by Sophsils View Post
My husband and I recently saw a house we were interested in purchasing in the low 300's. We met with a mortgage banker and were quoted closing costs of between $10,000-$12,000, which seemed high to us; however, other houses which we've purchased over the years have not been inew construction nor in this state. Would appreciate any input on whether or not this is a average amount on closing costs. Thanks in advance.

Do you have a realtor? If not, get one! I would never, ever buy new construction without someone on my side to watch out for me. Anyone who tells you a realtor can't help you negotiate on new construction has no clue. Realtors can and do help with new construction.

Not having a realtor on your side is like going into a lawsuit and expecting the other attorney to be looking out for you. You just wouldn't do that.

It won't cost you more and doesn't cost you a cent....hire a realtor to look things over and see if they can negotiate your closing costs,etc. The builder cannot raise the price of the home if you bring in a Realtor...that is illegal.

I see people post on here that realtors can not help with new construction, but that is simply a crazy statement. When you sit in front of that "saleperson" they are representing the builder. They work for him. They are not watching out for you, they are there to sell the houses that their boss builds.

Your realtor will know which builders will negotiate. Which ones do shoddy work, which have had Chinese drywall issues,etc.I have first hand experience and have saved tens of thousands by having my realtor with me.

If you don't have a realtor, there are several realtors that are very helpful on here....ask one of them for help.

Last edited by ILoveLidoBeach; 10-03-2014 at 06:44 PM..
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Old 10-04-2014, 05:27 AM
 
Location: Out in the stix
1,593 posts, read 2,617,934 times
Reputation: 1016
We just bought a home in Parrish, the builder covered closing costs of roughly $11000. Is the builder offering any incentives?
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Old 10-04-2014, 03:02 PM
 
Location: Sarasota/ Bradenton - University Pkwy area
3,368 posts, read 4,820,548 times
Reputation: 3060
Typical buyer closing costs include:

If you are getting a mortgage -- the state of FL charges doc stamps at $ .35 per $100 of mortgage amount, intangible tax at $ .20 per $100 (ie $2 per $1000) of mortgage amount.

The other FL transfer tax is doc stamps on the deed at $ .70 per $100 of purchase price. This is normally paid by the seller but builders often make it a buyer cost in their contracts. (By the way, so do many banks on REO sales.)

If a mortgage - Funds to set up the escrow account for annual taxes, insurance, PMI (if applicable). Buyer must also prepay the per diem loan interest from closing date to end of current month.

First year of homeowner's insurance.

Flood insurance is applicable.

Depending on how contract is written - either the buyer or seller will pay for the title policy and related charges. If the seller pays, the buyer is still responsible for lender required endorsements if they are obtaining a mortgage. Just the title policy without endorsements, based on a $300,000 purchase price would be $1575.

If applicable, HOA dues and transfer fee.

Survey.

Recording fees for the mortgage.

Sometimes courier fees.

Buyer may also have a closing fee to the title company.

On new construction the builder also frequently tacks on some other fees particular to that builder, such as a percentage of the purchase price, an irrigation connection fee, etc. Be sure to ask for a list of all such fees.

Depending on the community, there may be an up front capitalization fee.

Depending on the community, there may be prorated CDD (community development district) fees.



If you are getting a mortgage, lender fees are typically:

Loan origination fee, points
First year PMI if applicable
Appraisal Fee
Credit Report
Tax Service Fee
Underwriting Fee
Document Prep Fee
Flood Certification Fee

Some fees such as doc prep and underwriting can be negotiable.


Did you go to a lender affiliated with the builder? Sometimes builder lender rates are not as competitive as those of other area lenders. You are not obligated to use the builder's lender. However, if you do use the builder's lender, you should ask for credits towards your closing costs. Some builders offer credits up front, others will not make concessions unless you ask. You can use the quotes from other lenders as leverage....
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Old 10-05-2014, 07:20 AM
 
37 posts, read 48,659 times
Reputation: 19
Thank you all for the very informative responses. Obviously, we have a lot to learn before we venture out again into the housing market here. We're renting right now so have plenty of time to do so.
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Old 10-07-2014, 08:27 AM
 
Location: Sarasota Venice Englewood
707 posts, read 807,487 times
Reputation: 259
You should not buy any home, new construction or resale, without the assistance of a Realtor. Builders that "pay" for closing costs are like furniture retailers discounting an already overpriced item.
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Old 10-07-2014, 03:13 PM
 
Location: Punta Gorda and Maryland
6,102 posts, read 13,307,511 times
Reputation: 1227
Quote:
Originally Posted by dpbarr2000 View Post
You should not buy any home, new construction or resale, without the assistance of a Realtor. Builders that "pay" for closing costs are like furniture retailers discounting an already overpriced item.
Oh!!! Really!!! No that is clearly an unbiased opinion .....
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Old 10-08-2014, 08:13 AM
 
Location: Sarasota Venice Englewood
707 posts, read 807,487 times
Reputation: 259
Quote:
Originally Posted by Big House View Post
Oh!!! Really!!! No that is clearly an unbiased opinion .....
Why not? It costs you as the buyer zero dollars, and doesn't affect the price of the home.
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Old 10-08-2014, 08:16 AM
 
Location: Lakewood Ranch, FL
5,439 posts, read 8,500,627 times
Reputation: 6573
Quote:
Originally Posted by Big House View Post
Oh!!! Really!!! No that is clearly an unbiased opinion .....
Hey BH! I thought you were long gone. Where have you been?
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