As you begin to do your research on buying and investing in Kissimmee real estate, one area that you will want to understand and be prepared for is the closing costs associated with obtaining a property. In 2012 Florida ranked fourth in the nation for pricey closing costs with costs averaging between 2-3% of the purchase price. In Florida, like elsewhere, most of your closing costs are incurred in connection with obtaining a mortgage; however, even if you are not obtaining a mortgage, you can expect the following closing costs.
- Survey: If you are purchasing a single family home, you will want to make sure exactly what the boundaries are to your property and make sure that there are no unusual easements or encroachments affecting your property. Not required on most condominiums. $300 – $400
- Title Insurance: $5.75 per $1000 until $100,000, then $5.00 per $1000 thereafter.
- Hazard and Flood Insurance: Obviously, you want to protect your investment from fire or storm.
- Closing Fee: Charged by the closing agent for closing on the property. $325 – $600.
- Real Property Taxes and Homeowners Association Fees: These items need to be prorated at closing depending upon the time of year.
- Title Search: Charged by Title Insurance Underwriter for searching the title on the property. $75.00-$125.00.
- Home Inspection: You want a licensed inspection company to check out the roof structure and appliances. $300.00 – $400.
- Termite Inspection: Always recommended on single family residences. $45.00- $55.00.
- Condominium Association Application: Required by some Associations to approve you as a buyer. $100.00-$200.00.
If you are financing this same home and using a lender you can add in even more fees associated with closing costs such as lender fees, appraisal fees and credit reports. There is really no way around this because these all are needed to close a home. However there are some great options that will help you to save money and to help keep your out of pocket expenses at time of close at a minimum.
Fly & Buy Rebates- The first option is our $3000 Buy and Fly rebate. It’s a buyer incentive that we offer to our clients that Purchase in one of our VIP communities such as Champions Gate, Paradise Palms, and Veranda Palms. This is given to the buyer by us as a cash rebate at time of close to be used towards closing costs, HOA fees or any way the buyer would like to use this.
New Construction- Currently Kissimmee real estate builders are very competitive with the resale market. With demand high and inventory at a record low, new homes are being built at prices comparable if not lower than most of the resales within other well known communities. Buying with a builder has many great incentives which include but are not limited to money towards closing cost. Some builders will even assist with HOA fees and membership fees to help offset some of the out pockets expenses associated with purchasing a property.
We hope to earn the opportunity of helping you achieve your investment property goals this year. To set up a free, no obligation investment property consultation with us please use our scheduling tool or contact us directly at 866-422-6191 and if you have enjoyed this article please consider subscribing to our blog and stay updated on future information.