Buying a Miami Real Estate Property? Know the Common Closing Costs in the City

Savvy homebuyers know how to budget and save money for all the costs and unexpected expenses associated with buying a home. There is nothing more disastrous in home-buying than getting caught off-guard with unforeseen closing costs. When you''re buying a Miami real estate property, whether a condo, detached home or commercial, you should know just what types of closing costs are there in the city or in the entire South Florida, for that matter.

The Numbers

As a homebuyer, you should already know that the closing day expenses are a major factor involved in buying a real estate property. If, however, you''re in the city out browsing prospective Miami real estate property, you must realize that the city has the fourth highest closing costs as of 2008. The closing costs in Miami average of as much as $4,000. Of course there are several factors that can affect the actual closing day costs; it''s crucial to be prepared and have extra cash ready.

Nevertheless, here is a list of the most common closing costs associated in buying a Miami real estate property:

1. Doc stamp on the deed and mortgage

There are two documents stamps you need to save for: mortgage and deed. Doc stamps on your mortgage normally run around $0.50 or so for every hundred dollars of your total mortgage amount. The doc stamps on the deed, however, will cost you around $0.60 or so for every hundred dollars of the total home price.

2. Mortgage Intangible Tax

You should also be prepared to pay a certain amount of intangible tax. The Miami-Dade County generally imposes this tax on the amount of mortgage borrowed. Expect to pay at least $0.20 per $100.

3. Title Insurance

The title insurance fee is a crucial closing day cost that will protect you for any errors during the processing of your title. Any errors will pose serious ownership problems in the future. In Florida, the title insurance is assessed for every thousand dollars of the purchase price of your home. The actual rates, however, are based on a tiered structure. For instance, if your home is worth around a million dollars, expect to pay $2.50 or so for every $1,000.

4. Other Fees

Lastly, there are several other closing costs associated with a Miami real estate property purchase. The recording fees, for instance, is required for each page of the documents related to the purchase. Other costs include inspection fees, services fees and more.

Mark Michael Ferrer
Miami Real Estate