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Cost to a Buy House in Sarasota
Upfront Costs
Good Faith Deposit (EMD). The Earnest Money Deposit shows the seller that you are serious about buying their home. This amount is generally between 1% – 5% of the purchase agreement price. This deposit is then credited back to you at Closing.
Home Inspections: The home inspection costs will vary depending on the size and age of the home. Expect to pay between $400 – $750+.
Home Appraisal. The appraisal is required when getting a mortgage. The appraisal fee is typically $500+
HOA Application Fee. This fee, if it is required, comes directly from the HOA and covers administrative costs to review your application. It is generally $100 to $150.
Closing Day Costs
- Down Payment
Not to be mistaken with the initial deposit. The down payment can be as low as 0% of the purchase price depending on the loan program you qualify for. Lenders typically have 3%, 5%, 10% down payment products available. To avoid paying Private Mortgage Insurance most Lenders require 20% down.
- Title Insurance Policy
A title insurance policy is required when getting a mortgage. A policy for a $400K home would run around $2,300.
- Closing Fee
This is the fee the title agency or attorney’s office charges to perform the closing. This fee typically ranges from $400-$1,000 and can include courier fees, mobile notary, recording fees, lien search fees, etc.
- Buyer Agent Representative Fee
If you have never worked with a Buyer Agent, you may wonder how much it costs to have your own representative help you with your real estate transaction. While there is a small transaction fee ($395) charged to my Buyers at closing, a Buyer Agent is typically compensated by the Seller’s Broker for bringing a Buyer to the closing table (whether it is NEW or EXISTING construction). The Seller enters into a contractual agreement with their Broker to sell the home with a specific compensation amount. The Seller Broker typically offers a part of that compensation to a Buyer Agent. I have never been involved in a transaction where the Seller’s Broker did not offer compensation to the Buyer Agent. If the Seller or their Broker do not offer compensation to the Buyer Agent, the fee (3.0%) will be the Buyer’s responsibility. The fee can be negotiated a few different ways to have the Seller pay the fee at closing.
- Property Survey
The fee is typically $300-$500 depending on the size of the property.
- Documentary Stamps & Intangible Tax
These fees are charged when you are getting a new mortgage. These fees are based on the mortgage amount as follows: Doc stamps = .0035 x Mortgage Amount; Intangible Tax = .002 x Mortgage Amount.
- Homeowner’s Insurance Policy/Escrow
If you are purchasing a home with a mortgage, you will be required to secure a home insurance policy to protect the home and property against damage and liability. Home insurance costs vary significantly. It is best to reach out to an insurance agent as soon as you get a house under contract to determine how much your policy will be. If you are getting a mortgage the lender will require the 1st year policy to be paid at that time. Depending on how much your down payment is you could also be required by lender to add 3 – 6 months of payments into an escrow account as cushion and will be disbursed on your behalf when the policy renews.
- Property Tax Escrow
If you put down less than 20% of the purchase price, lenders typically require the buyer to add 3 – 6 months’ worth of property tax payments to their escrow account. These funds will be disbursed on your behalf when the lender pays your next property tax bill. (They use the previous year’s tax bill as a guide for how much to collect.)
- Mortgage Insurance (PMI) Policy/Escrow
As above, if you don’t put down at least 20% the lender may require mortgage insurance for the loan. You will have to pay the premium in full for the first year and then add a 3 – 6-month cushion depending on the type of financing you use.
- Lender Fee’s
These are fee’s the lender charges you to put together your loan. Some of these fees are for your credit report, processing the loan & pre-paid interest. The lender is required to provide you with a Good Faith Estimate upon submitting your application that shows these fees and others mentioned within this post.
- HOA Pro Ration/Condo Fee’s
These fee’s are typically paid in advance, so the seller has probably already paid this fee for the year, quarter or month. Whatever the seller has already paid, that you will now be benefiting from, will need to be repaid back to the seller at closing.
- Miscellaneous Fees
These fees can vary depending on each lender, but if you see an application fee or rate lock fee you can ask the lender for clarification.
- If Buyer is getting a mortgage a good rule of thumb to guesstimate your closing costs is to figure 3% of the purchase price
While this isn’t an exact science, it will give you somewhat of an idea of what the total cost could be. Then add your down payment percentage on top of that. Voilà!
While you may have enough in savings to cover the closing costs and down payment, the lender may require you to also have a minimum of 6 months of mortgage payments in your savings. There are certain ways to get help covering closing costs, but they will still cost you something. You could ask family member for help, or you could ask the seller to contribute. Another source of funds are local government grants and down payment assistance programs set aside for individuals with certain income and credit limits.
Frequently Asked Questions
1. Why Should I Use a Realtor® When Buying a Home?
A Realtor® brings expertise, market knowledge, and negotiation skills to the home-buying process. We help you find properties that match your specific needs, we guide you through the complex paperwork, and we advocate for your interests during negotiations, potentially saving you time and money.
2. How Much Does it Cost to Use a Realtor® as a Buyer?
In just about all cases, the Buyer’s Real Estate Agent is compensated by the seller’s Real Estate Broker through a commission split agreed upon prior to the property being listed in the MLS. Most if not all real estate companies still charge a nominal transaction fee for processing the transaction paperwork. However, it’s important to confirm this in your Buyer Agent Agreement, as terms can vary.
3. What is a Buyer Agent Agreement, and do I Need One?
A Buyer Agent Agreement is a contract outlining the agent responsibilities, compensation framework, and the duration of your working relationship. (As of August 2024 it is required of all Buyer Agents to have a signed Agreement with a Buyer before showing them a property, or face a $500 fine.) Review it carefully to understand your obligations before signing.
4. What Does a Realtor® do That I Can’t do Myself?
A Realtor® has access to the Multiple Listing Service (MLS) database; tons of market data metrics, and industry connections that are not readily available to the public. They can point you to appropriate lenders, insurers, contractors, inspectors and closing agents; identify and parse through specifically detailed & available properties; streamline the scheduling of showings (timing is important for some properties); provide pricing, property and community insights; confidently negotiate contracts; and coordinate with lenders, inspectors, surveyors, appraisers, title agents, utility companies, contractors and attorneys to ensure a smooth transaction.
5. Can I Buy a Home Without a Realtor®?
Yes, you can buy a home without a Realtor®, but it requires handling all of the complexities of the transaction yourself. A realtor’s expertise will reduce financial and transactional risks, point you in the right direction on all tranactional fronts, most likely save you tens of thousands of dollars through negotiations and lender reccomendations, and streamline the process, all while looking out for your best interests. It is in their best interest to do so – their reputation and return business from clients and referrals is the lifeblood of a Realtor®. Also, this is the largest purchase you may ever make. Do you really want to go at it without your own representation?
6. Can a Realtor® Help me Find Homes That Fit my Budget?
Yes, this is especially important if taxes, insurance and HOA payments are to be considered as a part of your pre-approval process. 3rd party websites do not account for your budget when searching for an available property. A Realtor® can filter listings based on your budget and preferences, ensuring you focus on homes you are capable of purchasing. They can also connect you with lenders to get you pre-approved, giving you a clear picture of your purchasing power.
7. What Paperwork And Legal Requirements Are Involved?
Buying a home involves legal contracts, disclosures, as well as Federal and State regulations. We guide you through preparing the purchase agreement, appropriate disclosures, and all required forms.
8. What Happens During The Negotiation Process?
We work closely with you to create the purchase contract based on price and terms you decide to offer. The offer will be presented to the seller via their agent shortly thereafter. We negotiate on your behalf to secure you the best deal possible. We advise you throughout the entire process.
9. Can a Realtor® Help With New Construction Homes?
Yes, a Realtor® can help you find a new construction community that matches your lifestyle as well as guide you when buying a new construction home, negotiating with builders, reviewing contracts, and ensuring upgrades or warranties are clearly outlined. They can also help you avoid pitfalls specific to new builds.
10. Can a Realtor® Help With For Sale By Owner Homes?
Yes, a Realtor® can help you with For Sale By Owner properties as well. Even though the owner is not using a Real Estate Agent to sell the property, most still offer to pay the Agent’s compensation. The Agent compensation can also be negotiated into the contract if not.
11. What Should I Expect At Closing?
At closing you will sign the final paperwork, including the settlement statement, closing agent disclosures and lender paperwork, if necessary. The closing agent will then file the official Deed (signed by seller) with the county which transfers the title of the property into your name. Don’t forget to bring an ID. We coordinate with the attorney or title company to make sure everyone knows where to be and at what time.
12. What Do I Do After Closing?
You will receive all available keys and copies of closing documents. You can now breathe a sigh of relief, start moving in and plan a house warming party so your friends can buy you stuff you never knew you needed! Congratulations!
ALEX MOREL, REALTOR®
Meet Alex, a Sarasota native with over 40 years of local knowledge and 15 years of experience as a licensed Realtor®. Growing up in a family of home builders and spending a decade in engineering, Alex combines technical expertise with a personalized approach to real estate. Serving Sarasota, Manatee, and Charlotte counties, Alex is dedicated to making your home buying or selling journey seamless and successful.
- Licensed Realtor® since 2010
- Specializes in Residential Real Estate in Sarasota Florida
- Representative For Both Buyers & Sellers
- Member of National, Florida & Sarasota Association of Realtors
- Served on Sarasota Board of Realtors Committee's between 2019-2021
Why Buy a Home in Sarasota With Us?
- Local expertise with in-depth market knowledge.
- Background in residential construction and engineering.
- We specialize in negotiating the best deal for our client.
- We work for you, not the seller.
- Exclusive access to all listings – existing, new and FSBO.
- Seamless process – stress-free buying with expert guidance.
- Personalized service – we match you with your perfect lifestyle.
Start your journey today —
fill out the form and let us do the rest!
FREE BUYER’S GUIDE. OUR GUIDE COVERS THE FOLLOWING:
- Our company information.
- How we represent our customer’s interest and not the sellers.
- The multiple services we provide buyers.
- Important info that buyers should know.
- What to expect during the process.
- What to expect at the closing.
- New construction representation.
- For sale by owner representation.
- A moving timeline and checklist.
- A change of address checklist.
- Important local phone numbers.
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