Are closing costs in South Miami catching you by surprise? You are not alone. Between lender fees, title insurance, Florida taxes, and condo items, the numbers can add up fast if you are not prepared. In this guide, you will learn what buyers and sellers typically pay in Miami‑Dade, how Florida’s taxes are calculated, and what is negotiable so you can budget with confidence. Let’s dive in.
What closing costs include
Closing costs are the third‑party fees, taxes, prepaid items, and prorations required to complete a real estate sale. They are separate from your purchase price and down payment. In South Miami, common items include lender charges, appraisal, title and recording fees, state taxes, insurance escrows, inspections, and any condo or HOA fees.
How much buyers typically pay
Most buyers in Florida budget about 2% to 5% of the purchase price for closing costs, not including the down payment. Your exact number depends on your loan type, lender pricing, insurance, and whether the seller covers the owner’s title policy.
Loan and lender fees
- Origination and points when charged, often 0.5% to 1.5% of the loan amount.
- Underwriting, processing, and application fees, about $300 to $1,200 combined.
- Appraisal in Miami‑Dade, usually $400 to $800.
- Credit report, $30 to $60; flood certification, $15 to $50.
- Florida mortgage taxes when you take a new loan: documentary stamp on the promissory note and an intangible tax on the mortgage. See the Florida tax section below for formulas.
Title and closing fees
- Title search, commitment, and closing/settlement fee, typically $300 to $900.
- Lender’s title insurance policy, commonly 0.2% to 0.5% of the loan amount.
- Owner’s title insurance policy, usually 0.4% to 0.7% of the purchase price. In many Florida deals the seller pays this, but it is negotiable.
- Recording fees for county documents, often $25 to $250 depending on what is recorded.
Prepaids and escrow deposits
- First year of homeowner’s insurance due at closing or proof of binding, often $1,000 to $3,000+ based on wind and flood exposure.
- Escrow cushions for taxes and insurance, commonly 2 to 6 months of each item.
- Prorated property taxes and HOA dues based on the closing date.
Inspections and surveys
- General home inspection, about $300 to $600.
- Termite or WDI inspection, about $75 to $200.
- Specialized inspections such as pool, roof, mold, or sewer scope, each about $100 to $800 depending on scope.
- Survey for single‑family homes when required, often $300 to $700.
Condo and HOA items
- Condo or HOA estoppel or resale certificate, about $100 to $500+ depending on the association.
- Possible transfer fees or capital contributions set by the association’s documents.
- Prorated HOA dues and any move‑in fees.
Other buyer costs
- Earnest money deposit that applies to your down payment and costs.
- Private mortgage insurance if you put less than 20% down, sometimes with an upfront component.
- Utility deposits or move‑in scheduling fees.
How much sellers typically pay
Sellers in South Miami often budget 5% to 6% of the sale price for commission, plus state deed taxes and title or condo items. All‑in seller costs (excluding mortgage payoff) commonly land near 6% to 8% depending on commissions and concessions.
Real estate commission
- Often about 6% in South Florida, split between listing and buyer brokers. Commission is negotiable.
Taxes, title, and payoff items
- Florida documentary stamp tax on the deed, typically paid by the seller by local custom, but negotiable.
- Owner’s title insurance policy is commonly provided by the seller in many Florida counties, but this is negotiable.
- Payoff of any existing mortgage and lien clearance costs.
Prorations and credits
- Prorated property taxes and HOA dues as of the closing date.
- Seller credits toward buyer closing costs if negotiated, which reduce net proceeds.
Other seller costs
- Repair credits agreed after inspections.
- Condo estoppel and transfer fees when the condo documents assign them to the seller.
Florida taxes explained
Florida has three common transaction taxes that affect closings in Miami‑Dade. Who pays can be negotiated, but the amounts are set by statute.
- Deed documentary stamp tax: 0.0070 multiplied by the sale price. Example on a $400,000 sale: 400,000 × 0.0070 = $2,800.
- Mortgage documentary stamp tax: 0.0035 multiplied by the loan amount. Example on a $320,000 loan: 320,000 × 0.0035 = $1,120.
- Intangible tax on mortgages: 0.002 multiplied by the loan amount. Example on a $320,000 loan: 320,000 × 0.002 = $640.
Recording fees also apply and vary by document count. Title companies calculate these precisely on your settlement statement.
Example ballpark totals
These examples are for budgeting only. Your lender and closing agent will provide exact figures for your property and loan.
Buyer example: $400,000 single‑family with 20% down
- Loan amount: $320,000
- Lender fees, appraisal, credit report: about $1,800
- Title and closing plus lender’s title policy: about $1,200
- Prepaid homeowner’s insurance (1 year): about $1,500
- Escrows for taxes and insurance: about $800 to $1,600
- Intangible tax on mortgage: $640
- Documentary stamp on note: $1,120
- Inspections (home and termite): about $450
- If the buyer pays the owner’s title policy, add roughly 0.5% of price, about $2,000
Estimated buyer cash to close, excluding down payment, is roughly 1.5% to 2.75% of price when the seller pays the owner’s policy, about $6,000 to $11,000.
Seller example: same $400,000 home
- Commission at 6%: $24,000
- Deed documentary stamp tax: $2,800
- Owner’s title policy and settlement fee if seller pays: about $2,000
- Prorations, closing fees, and possible concessions: about $1,000 to $3,000
Estimated seller costs, excluding mortgage payoff, total about $29,000 to $32,000, or about 7% to 8% of the sale price.
Who pays what in South Miami
Customs can vary by neighborhood and property type, but here is what you will often see in Miami‑Dade:
- Owner’s title policy is commonly paid by the seller, but is negotiable.
- Deed doc stamps are often paid by the seller, while mortgage doc stamps and intangible tax are paid by the buyer taking the new loan.
- Lender’s title policy is always the buyer’s cost when there is a mortgage.
- Commission is paid by the seller and split between brokers, subject to negotiation.
- Condo deal costs, including estoppel and transfer fees, depend on the association’s rules and the contract.
Condos vs single‑family homes
Condo closings in South Miami often include an HOA estoppel or resale certificate, possible transfer fees, and move‑in scheduling. Document turnaround times can affect your closing date. Single‑family homes may require a boundary survey and have different utility or insurance considerations. In both cases, check for any special assessments and build a realistic timeline for approvals and clearances.
How to get accurate numbers
- Ask your lender for a Loan Estimate as soon as you apply. This shows your estimated closing costs.
- Request a buyer’s closing statement or a seller net sheet from your title company or agent for the specific property.
- Get quotes for title insurance and any settlement fees from local title companies. Premiums follow Florida‑filed rates, while service fees can vary.
- Order HOA or condo estoppel documents early. Confirm any transfer fees or capital contributions.
- Verify Florida tax calculations with your closing agent and review your draft Closing Disclosure before signing.
- Shop insurance early. In Miami‑Dade, windstorm and flood considerations can affect both your premium and your escrow requirements.
Quick checklists
Buyer checklist
- Confirm your Loan Estimate and rate‑lock terms.
- Budget for the Florida mortgage taxes if you are financing.
- Line up inspections and any needed specialized reports.
- Bind homeowner’s insurance and review flood needs.
- Confirm HOA estoppel, prorations, and any move‑in fees.
- Ask whether the seller will cover the owner’s title policy.
Seller checklist
- Review a net sheet with commission, deed tax, and title costs.
- Order mortgage payoff figures early and clear any liens.
- Confirm who pays for the owner’s title policy in your contract.
- Provide HOA documents and estoppel requests quickly.
- Plan for buyer credits or repairs after inspections if needed.
Next steps
If you want a clear picture of your numbers before you list or submit an offer, ask for a personalized net sheet or buyer estimate based on your property and loan. With a background in title and nearly two decades of local transactions, we can help you forecast your cash to close and reduce surprises. Ready to talk through your goals in South Miami, Glenvar Heights, or Coral Gables? Connect with Jordan Casanas for local guidance and Get a Free Valuation.
FAQs
Who pays for title insurance in South Miami transactions?
- In many Florida deals the seller pays the owner’s title policy, while the buyer pays the lender’s policy when financing; your contract can negotiate this.
How are Florida documentary stamp and intangible taxes calculated?
- Deed doc stamp tax is 0.0070 times the sale price; mortgage doc stamp is 0.0035 times the loan; intangible tax is 0.002 times the loan, all typically collected at closing.
Are condo closing costs higher than single‑family in Miami‑Dade?
- Condos often include HOA estoppel, transfer fees, and move‑in charges; single‑family homes may add a survey, so totals differ by property and association.
Can a seller pay a buyer’s closing costs in South Miami?
- Yes, seller credits are common and negotiable, subject to lender limits for your loan program.
Where can I get an accurate estimate of my closing costs?
- From your lender’s Loan Estimate and Closing Disclosure, plus a title company’s draft settlement statement or an agent’s seller net sheet for your property.
