Buyers Fees for an Orlando Vacation Home
At closing you can expect some additional fees in addition to the purchase price paid. Fees will vary from transaction to transaction and will vary slightly depending on the title company used and their fee schedule – they are however similar overall so you can get a reasonable estimate prior to closing.
In Florida, real estate sales and contracts are handled by a licensed real estate agent or “Realtor” not an attorney. So, it is unlikely there will be attorney fees. The entity that handles the contract and escrow for the funds is the “Title Company” a neutral party that oversees the transaction.
Here are buyer and ownership fees that may be applicable to a buyer at close.
Title Company Fees
Settlement fees are in the region of $500-$750, plus miscellaneous fees such as recording fees and delivery fees such as FedEx.
Read more on Title Company and Attorneys.
Pro-rations for Property Tax and the CDD.
Property tax is paid in arrears, the CDD is paid in advance.
You will almost certainly receive credit from the seller for property taxes for the seller’s share of the annual tax up until the day of closing. Conversely, you may be debited for the seller’s prepaid CDD if the community has a CDD.
Read more on the CDD.
HOA and Resort Fees
Many resorts require HOA fees paid in advance, usually a month or a quarter. These vary depending on the resort. Most resorts require a “Capital Contribution” one-time fee. Ask your Realtor if the resort you are buying in has a capital contribution fee. They vary from $0 to $3,000.
Read more on HOA Fees.
Membership Fees
Some of the more exclusive resorts may have membership fees, some are mandatory, and some are not. Your Realtor can advise which is the case if any and transfer or annual fees.
Read more on Reunion Membership
Home Inspection Report
You should have the property inspected by a licensed professional. The cost varies depending on the size of the home, expect about $600 – $700 for an average 6-bedroom home.
Read more on the home inspection.
Financing Fees
A lender will charge its own set of fees such as origination and mortgage fees and will be dependent on the lender and their fee schedule. An estimate of the fees can be obtained directly from the lender. Expect to also pay for a notary and for a land survey if financing.
Read more on Foreign National Financing.
Brokerage Fees
Fees for your estate agent or Realtor may vary for each sale and can be negotiated as part of the purchase contract.
Compensation for our real estate and vacation home specialist services is 3% of the final agreed sale price. You may authorize us to negotiate this fee as part of the offer contract to be paid by the seller.
Read more on Representation.
Home Insurance
Prices of second home and short-term rental policies vary. Work with an experienced insurance broker to find the best policy that fits your needs. Prices vary depending on size and location.
Read more on Florida Property Insurance.
Utility Fees
Some utility companies may require a deposit or equipment fees for TV, Cable and Internet.
LLC Set Up Fees
Should you decide to take title in an LLC, there will be an additional cost.
Read more on taking a vacation home as an LLC
New Homes
There may be additional closing fees on the purchase of a new home as opposed to a resale. Generally, a builder does not pay the title insurance or the sales tax (doc stamps) that a seller of a resale does, and those fees can be considerable. They may also have a “builder fee”.
However, it is worth noting that your Realtor may be able to negotiate the closing fees for you with the builder and in many cases have them paid for as part of the new home purchase agreement.
Read more about New Homes
Calculate the Returns
Estimate the profit and loss of a vacation home with our interactive calculator (which was ranked #1 in the world with Google!)
Use our Interactive Calculator
If you choose to rent there will be additional expenses:
Applying for an ITIN Number, essentially a social security number for Foreign Nationals.
Read more on the ITIN#
Hiring an accountant to take care of your annual tax returns.
Watch our Financial and Tax Question Webinar
Property management and their set up fees.
Read more on Property Management.
Work with a vacation home specialist who can advise you on additional or hidden fees, there are many additional fees that come with a vacation home that are not necessary in general residential real estate so not all Realtors may be aware of all fees.
Please let us know if you have any additional questions regarding fees for your Florida vacation home.