How Much Are Closing Costs for a Jacksonville Condo?

Welcome! I’m so glad you found us because I’m excited to share with you the best information on how to budget for your Jacksonville FL condo purchase. When you know exactly what to expect, you’re almost guaranteed to make a better decision. So let’s get started!



There are two types of costs you should consider before you purchase a Jacksonville condo:

1. Initial costs (the costs of the transaction to transfer ownership, or “closing costs”)
2. On-going costs (association fees, taxes, and maintenance.)

How to Budget Initial Costs for Your Jacksonville FL Condo

Let’s start with the cost to purchase. As you may have seen, Jacksonville condos rangeponte vedra fl condo for sale jacksonvillein price from $20,000 to over $2,000,000! Your loan pre-qualification letter or your bank account balance will determine where you fall within that range! Once you’ve got a ballpark figure of what you want to spend on your Jacksonville condo purchase, we’ll help you estimate the costs to close the deal!

After you have your “proof of funds” in hand (either a loan pre-qualification letter or signed and dated bank letter that shows you have sufficient funds available), and you’re ready to make an offer on a condo, you’re first initial cost will be your binder deposit.

A binder deposit shows that you are serious about purchasing the condo and it symbolizes your promise to close the sale. The greater the amount of your binder deposit, the more serious your offer will appear to the seller. The minimum binder deposit on Jacksonville condos is usually $1,000. But a good rule of thumb is 1.5% of the purchase price.

How to Budget for Condo Inspections

The second set of initial costs for your condo purchase will be related to inspections (and to your loan application fees, if you are financing.) A typical Jacksonville condo inspection could run you $200-300 depending on the size and location of the property. If you don’t know any Jacksonville home inspectors, feel free to contact us for some recommendations. We’ll tell you who has done a great job for our customers. If you or your bank orders an appraisal, that will cost you about $300-400.Sample_GFE_pg1

If you are financing your purchase, make sure to get a copy of your Good Faith Estimate (GFE) from your lender and review it carefully with your loan officer and your real estate agent. You can even use your GFE to shop around for the best loan. Your GFE will also include important pre-paid costs like hazard insurance, mortgage insurance, pre-paid interest, pro-rated taxes and association dues. Your lender may also require a pest inspection (around $150) and their own inspection of the property. Other lender fees could include credit reports, origination fees, and point or discounts where you buy-down your interest rate. You will pay some of these costs out of pocket, prior to closing. Others will be included in your loan or paid at the time of closing. It’s important to discuss these costs with your lender and real estate agent prior to making an offer.

How to Prorate Condo Association Fees

Pro-rated fees include your association fees and annual county taxes. Let’s discuss association fees first. Depending upon the association’s payment schedule, the seller may have already paid the dues in full (either for that year or quarter or month) for a period of time that he or she will not own the property. To compensate for this, association dues are calculated into a daily rate. All of the days in that calendar year that fall before your closing date will be paid by the seller. The closing date and every day after for the rest of the calendar year will be paid by you.

Prorated Property Taxes

Taxes are treated in a similar manner. In Jacksonville, Florida taxes are paid “in arrears.” This is just a fancy term that means property taxes are paid at the end of the year for which they were calculated. For example, you don’t pay 2013 until the end of 2013, or even in 2014. Property taxes can be paid with late fees several months into the following year. So you are always paying for taxes that were already accrued. To handle this at closing, the annual taxes are split or prorated into two portions: the days before closing during which the seller owned the property, and all of the days after closing during which the buyer owns the property. Sometimes the buyer will only be required to pay a couple months of taxes at closing if they have included tax payments into their mortgage. And sometimes the seller will receive credit back for taxes they’ve already paid in advance. Your closing agency will be able to estimate and explain your tax costs.

Title Company Fees

Other standard closing costs are paid at the time of closing. These include work done by the title company. A title search is done to ensure that the title to your new condo is clear and ready to be transferred (because it is rightfully owned only by the sellers and no one else.) The title search will cost you $100-200.

Both the buyer and seller will each pay for their own title insurance policy to protect them from future title issues or a lawsuit should someone later claim a right to the property after the sale. The cost of the policy is often a percentage and can range from a couple hundred to a thousand dollars. Then the settlement fee is paid to the agency that processes the closing, typically $200-400. This cost can be shared by buyer and seller, but is negotiated at the time of the offer (not at closing) and must be written in the contract. The settlement agency or closing office may have a few other charges for scanning or mailing documents, usually $50-100.

Government & State Closing Fees

Finally, there are government recording fees, transfer fees, and state stamps (or taxes on the sale itself.) These fees are standard Florida fees, calculated as a percentage of the purchase price and a percentage of the loan amount, if financing is involved. Deed stamps can be calculated by multiplying 0.007 by the purchase price (Ex: 0.007 x $200,000 = $1400 Deed Stamps). Stamps or taxes on the mortgage can be calculated by multiplying 0.0035 by the loan amount (Ex: 0.035 x $200,000 = $700 Mortgage Stamps). There will also be fees to record the deed (usually minimal, less than $50) and to record the mortgage (possibly a couple hundred dollars).

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Your HUD-1 Closing Statement

All of these costs will appear in a two- or three-page settlement statement called a HUD-1. You should receive a draft version of the HUD-1 statement prior to closing. It will show an estimated breakdown of all the costs incurred by the buyer and seller, and how they will be distributed (who pays what). It’s important to remember that the draft is just an estimate and fees can change slightly before closing, based on interest rates, changed dates or pro-rated amounts.

Right before closing you will get an exact amount of the total due from you. You will then get a cashier’s check from your bank to present to the settlement office at closing. Always have funds liquidated or cash readily available well before the closing date, and allow enough for slight variations in costs.

(The sample HUD-1 above, and any cost figures mentioned on this page or in the video, are to be viewed only as an illustration. These fees are approximations only. They represent no guarantee of your closing costs or any related services.)

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