Buying in West Palm Beach and not sure how much cash you need to close? You are not alone. Closing costs can feel like a maze of fees, taxes, and prepaid items that change by county and contract. This guide breaks down what buyers typically pay in Palm Beach County, what sellers often cover, and how to budget with confidence. Let’s dive in.
What closing costs include
Closing costs are the fees, taxes, prepaid items, and prorations due at closing in addition to your down payment. For buyers, this often includes lender charges, appraisal, title and recording fees, Florida taxes tied to the mortgage, inspections, homeowner’s insurance, and initial escrow deposits. You may also see HOA-related charges, property tax prorations, and prepaid interest based on your closing date.
Buyer closing costs
- Lender fees, such as application, origination, or underwriting.
- Appraisal and credit report.
- Lender’s title insurance policy and title settlement fees.
- Recording fees with Palm Beach County Clerk & Comptroller.
- Documentary stamp and intangible taxes related to the mortgage.
- First-year homeowner’s insurance and initial escrow deposits.
- Inspections, surveys if required, and HOA estoppel or transfer fees.
Seller-paid items in South Florida
In much of South Florida, including Palm Beach County, sellers commonly purchase the owner’s title insurance policy. Sellers typically pay real estate commissions, which are negotiated. Responsibility for HOA transfer or estoppel fees depends on the contract and local custom.
Florida and Palm Beach taxes
Florida closing costs include state-level taxes and county recording charges that influence your final cash to close.
Documentary stamp taxes
- Deed documentary stamp tax is calculated on the purchase price. A commonly used rate in practice is $0.70 per $100 of consideration in most Florida counties. Confirm the current rate with the Florida Department of Revenue.
- A separate documentary stamp tax can apply to the mortgage amount, commonly referenced at $0.35 per $100 of the loan. Your title company will calculate exact figures.
Intangible tax on mortgages
Florida charges a one-time intangible tax on new mortgages recorded in the state. This tax is based on the loan amount and is typically paid at recording. Ask your lender or title company for the exact calculation for your loan program.
Recording and clerk fees
Palm Beach County charges recording and administrative fees to record deeds, mortgages, and releases. These amounts vary by document type and page count. While modest compared to taxes and title premiums, they are part of your final total.
Typical buyer costs and ranges
Common line items
- Lender fees: often 0.5% to 1.5% of the loan amount.
- Appraisal: typically $400 to $800 or more.
- Credit report: about $25 to $50.
- Lender’s title insurance and title services: a few hundred dollars to low thousands depending on price.
- Recording fees: often $50 to $200 or more.
- Documentary stamp and intangible taxes: vary by purchase price and mortgage amount, often several hundred to several thousand dollars.
- Homeowner’s insurance (first year): typically $800 to $3,000 or more, with higher ranges possible near the coast or when flood insurance is required.
- Initial escrow deposits: often equal to about 2 months of taxes and insurance.
- Prepaid interest: depends on your closing date and loan size.
- HOA/condo estoppel or transfer fees: often $150 to $400 or more.
How much to budget
- Financed buyers: plan for roughly 2% to 5% of the purchase price in closing costs, excluding your down payment.
- Cash buyers: plan for about 0.5% to 2% since there are no loan-related fees or mortgage taxes.
Examples using the 2% to 5% guide:
- $300,000 purchase: about $6,000 to $15,000.
- $500,000 purchase: about $10,000 to $25,000.
- $800,000 purchase: about $16,000 to $40,000.
Quick tip: Prepaids and escrow deposits can make up a meaningful share of your cash to close. Ask your lender for an itemized estimate early.
Example breakdowns
Below are illustrative scenarios for Palm Beach County. Exact figures will depend on your contract, lender, and title company.
$400,000 purchase example
Assumptions: 20% down, conventional loan of $320,000, seller pays owner’s title policy.
- Loan origination and lender fees (0.75%): $2,400
- Appraisal: $500
- Credit report and processing: $75
- Lender’s title policy and title fees: $600
- Recording and courier: $150
- Documentary stamp and intangible taxes on mortgage: estimate $1,200
- First-year homeowner’s insurance: $1,500
- Initial escrow deposit (2 months): $600
- Prepaid interest: $400
- Inspections: $500
- Estimated buyer cash to close, excluding down payment: about $7,925
$750,000 purchase example
Assumptions: 20% down, conventional loan of $600,000, seller pays owner’s title policy.
- Loan origination (0.75%): $4,500
- Appraisal: $650
- Lender’s title policy and title fees: $1,200
- Recording and documentary/intangible taxes: $2,500
- Insurance and escrow deposits: $3,000
- Prepaid interest: $700
- Inspections, HOA estoppel, survey if needed: $1,000
- Estimated buyer cash to close, excluding down payment: about $13,550
Ways to manage costs
You can shape your closing costs with planning and negotiation. Discuss these options with your lender and agent early.
- Ask for seller credits in your offer to offset specific fees or prepaids.
- Compare lenders on both rate and fees, and request an itemized Loan Estimate.
- Time your closing date to manage prepaid interest.
- Shop homeowner’s and flood insurance and ask about wind mitigation credits.
- Clarify who pays owner’s title insurance in your contract. In Palm Beach County, the seller often pays this, but it depends on the deal.
Your pre-closing checklist
Use this list to get clear numbers before you sign your Closing Disclosure.
- Request a Loan Estimate within 3 business days of application and compare it to your final Closing Disclosure.
- Confirm who pays the owner’s title policy in your contract.
- Ask the title company for exact title premiums for lender’s and owner’s policies.
- Have the closing agent calculate documentary stamp and intangible taxes, plus county recording fees.
- Verify lender fees, appraisal, credit report, and any third-party charges.
- Get homeowner’s and flood insurance quotes and confirm amounts due at closing.
- Confirm initial escrow deposits and how many months your lender will collect.
- Verify HOA or condo estoppel, transfer, and processing fees and who pays them.
- Review prorations for property taxes and HOA dues.
- Confirm any seller credits and how they will be applied on the Closing Disclosure.
- Ask if a survey is required and what it will cost.
- Schedule inspections such as home, WDO, wind mitigation, or four-point if needed.
Closing timeline in West Palm Beach
Most financed purchases in Palm Beach County close in about 30 to 45 days from contract. Cash purchases can close faster, often 7 to 21 days, subject to title readiness and HOA processing. Plan your inspections and document reviews early to stay on track.
Get local guidance
Your closing statement should never be a surprise. A local team can help you structure your offer, confirm who pays what, and secure accurate quotes from lenders and title early. If you want a line-by-line estimate tailored to your price point and neighborhood in West Palm Beach or nearby Boca Raton and Delray Beach, we can help.
Ready to run the numbers and plan your cash to close with confidence? Connect with The Coastal Realm for a precise, local estimate and a smooth path to the finish line.
FAQs
How much are buyer closing costs in West Palm Beach?
- Financed buyers usually budget 2% to 5% of the purchase price, while cash buyers often see 0.5% to 2% due to fewer loan-related fees.
Who usually pays owner’s title insurance in Palm Beach County?
- It is common for the seller to purchase the owner’s title policy in South Florida, but this is negotiable and must be confirmed in the contract.
What Florida taxes will appear on my closing statement?
- Expect documentary stamp taxes on the deed and taxes related to the mortgage, plus an intangible tax on new mortgages and county recording fees.
Do lenders in Florida require escrow accounts for taxes and insurance?
- Many lenders require an escrow account and an initial deposit of about 2 months of taxes and insurance, though requirements vary by lender and loan type.
How long does a financed closing take in Palm Beach County?
- Typical timelines are 30 to 45 days from contract to closing for financed purchases, with cash deals often completing in 7 to 21 days depending on title and HOA steps.
