Buying or selling in The Villages and not sure what to budget for closing? You are not alone. Closing costs can feel confusing, especially with CDD assessments, HOA and recreation items, and prorations unique to our area. In this guide, you’ll learn who typically pays what in Florida, what line items to expect in The Villages, realistic cost ranges, and simple checklists so you can plan with confidence. Let’s dive in.
What closing costs include
Closing costs are the third-party fees, taxes, prepaid items, and escrow deposits needed to complete a home sale. They are separate from your purchase price and moving costs. You will see items from lenders, the title company, local associations, and government offices. The title/closing company collects these and issues a final settlement statement at closing.
Typical totals to budget
- Buyers using a mortgage: plan for about 2% to 5% of the purchase price. Cash buyers often see 1% to 2%.
- Sellers: plan for 6% to 8% of the sale price if paying a standard real estate commission. Excluding commission, many sellers see about 1% to 2% in other closing costs.
These are broad planning ranges. Your lender and the title company will provide exact figures for your specific property and contract.
Who pays what in Florida
Customs vary by contract, but here is what is typical in Florida.
Buyer costs (typical)
- Loan origination and lender fees: often 0.5% to 1.5% of the loan amount or flat fees. Your Loan Estimate will spell these out.
- Appraisal fee: usually 400 to 700 dollars when financing.
- Credit report: usually 25 to 75 dollars.
- Underwriting and processing: included in lender fees.
- Mortgage recording and intangible tax: charged on new mortgages in Florida. The title company calculates the exact amount.
- Lender’s title insurance policy: required when you finance; cost depends on loan amount.
- Escrow deposits: lenders often collect 2 to 6 months of insurance and a portion of property taxes at closing.
- Inspections: home inspection about 300 to 600 dollars; termite or pest 50 to 150 dollars; wind mitigation 75 to 150 dollars.
- Survey: often 300 to 800 dollars if required.
- HOA or recreation transfer/move-in fees: commonly 100 to 400 dollars, depending on the association; may be negotiated.
Seller costs (typical)
- Real estate commissions: often 5% to 6% of the sale price combined, though this is negotiable.
- Owner’s title insurance premium: customarily paid by the seller in Florida. Amount depends on the sale price and rate tables.
- Documentary stamp tax on the deed: commonly a seller expense. The title company calculates it based on the sale price.
- Mortgage payoff and recording of satisfaction: includes principal, interest through payoff date, and any penalties if applicable.
- Prorations: credits or charges for the portion of the year you owned the property, including property taxes and applicable association or assessment items.
- HOA estoppel letter fee: often seller-paid; usually 100 to 400 dollars.
- Special assessments due before closing: typically seller-paid, depending on contract.
- Attorney, courier, or convenience fees: if used.
Shared or negotiable items
- Title company escrow or closing fee.
- Recording fees tied to deed or mortgage.
- HOA transfer or admin fees.
Your contract can reassign many of these. If you want the other side to cover a cost, ask for it in writing.
The Villages specifics to expect
The Villages spans multiple Community Development Districts (CDDs) and associations. These create a few line items that are common on local closing statements.
CDD assessments
A CDD is a local special-purpose government that finances community infrastructure and repays bond debt through non-ad valorem assessments. In The Villages, most CDD assessments are collected on your annual property tax bill. At closing, you can expect:
- Proration of any CDD assessments for the year based on the closing date.
- Seller responsibility for amounts due before closing, with the buyer assuming future annual assessments under most contracts.
- In some cases, a payoff or payoff letter if there are special assessments that can be prepaid.
Assessment amounts vary by district and bond structure. Confirm the property’s specific CDD schedules early so you know the ongoing annual cost.
HOA and recreation items
Many Village associations or recreation services require paperwork and modest fees when ownership changes. You may see:
- Estoppel letter: certifies dues status and any pending fines. Commonly required by lenders and title companies. Typical fee is 100 to 400 dollars and is often seller-paid in Florida.
- Transfer or administrative fees: many associations or recreation entities charge a small flat fee, often 50 to 250 dollars, to set up accounts or process an amenity or recreation ID.
- Capital contributions or application fees: some associations require a one-time fee at transfer. Confirm with the specific HOA or recreation entity for the property.
- Recreation ID processing: a small fee may apply. Responsibility depends on your contract.
Because The Villages includes multiple CDDs and associations, two homes on the same street can have different fees. Always request property-specific estoppel and assessment information.
Estoppel vs. payoff letters
- Estoppel letter: issued by an HOA or association to show dues status and any violations or fines.
- Payoff letter: issued by a mortgage lender to show the exact balance required to release a lien by a set date.
Both are standard closing documents and the title company coordinates them.
How prorations and timing work
Property tax proration
Florida property taxes are paid in arrears, with bills issued later in the year. At closing, taxes are prorated between buyer and seller based on days of ownership. The title company computes the credit or charge to balance the year fairly.
In The Villages, confirm how CDD assessments tied to the tax bill are handled. They are also typically prorated based on the closing date.
Documents and timeline
- If you finance, your lender provides a Loan Estimate early in the process and a Closing Disclosure at least three business days before closing.
- The title/closing company prepares the settlement statement, collects and disburses funds, and handles recording and taxes.
- Expect to provide ID, insurance proof, and any lender- or association-required documents before the closing date.
What the title company handles
The title company calculates documentary stamps, recording fees, and any intangible mortgage taxes. It also prepares prorations for property taxes and assessments, issues title insurance, and pays off any liens at closing. Reach out to your closer for exact figures once your contract is in place.
Sample budgets on a 300,000 dollar home
These examples are for planning only. Your numbers will vary by loan terms, timing, and contract.
Buyer using financing:
- Loan origination or points: about 0.5% to 1.5% of the loan amount.
- Appraisal: about 450 dollars.
- Lender’s title policy and state recording/intangible: a few hundred to about 1,500 dollars, depending on loan amount.
- Prepaid escrow for taxes and insurance: about 1,000 to 3,000 dollars, depending on season and tax amounts.
- Inspections: about 350 to 800 dollars.
- Estimated buyer closing costs: about 6,000 to 15,000 dollars.
Seller:
- Commission at 6%: 18,000 dollars.
- Owner’s title insurance and documentary stamp tax on deed: several hundred to a few thousand dollars combined.
- HOA estoppel and transfer fees: about 100 to 400 dollars.
- Estimated seller closing costs: about 19,000 to 21,000 dollars or more, with commission being the largest line item.
Buyer checklist
Use this to stay organized from contract to keys.
- Get your Loan Estimate and review closing costs and rate options.
- Ask your lender and title company for a sample Closing Disclosure or preliminary settlement statement.
- Budget for inspections and the appraisal; schedule them early.
- Confirm which HOA, recreation, and CDD fees apply to the property; request estoppel and assessment details.
- Verify wire instructions by phone with the title company before sending funds.
- Confirm escrow deposits required for taxes and insurance, and how the closing date affects prorations.
- Provide your homeowner’s insurance binder and satisfy lender conditions on time.
Seller checklist
Set yourself up for a smooth close.
- Request written payoff letters for all mortgages or liens; check for any prepayment penalties.
- Order HOA estoppel and any association transfer documents early.
- Ask the title company for an estimate of the owner’s title policy and documentary stamp tax on the deed.
- Confirm who pays which recording fees under your contract.
- Arrange final utility readings and gather keys, remotes, gate or pool fobs, and association-required documents.
- Review your settlement statement before closing and confirm prorations and credits.
Smart negotiation tips
- Owner’s title insurance is customarily a seller cost in Florida, but it can be negotiated in your contract.
- HOA estoppel is often seller-paid; separate transfer or administrative fees may be assigned to either party.
- Ask the title company to quote the escrow or closing fee and decide up front if you want to split it.
- If you are the buyer, you can request seller credits to offset some of your closing costs. If you are the seller, you can offer credits to help a deal come together.
Work with a local guide
Every Village, CDD, and association can handle fees a little differently. A local expert will help you spot the right line items early, avoid surprises, and negotiate your best outcome. If you want clear numbers, a calm process, and responsive help from contract to close, reach out to Caroline Fromkin for a free valuation or a no-pressure consultation.
FAQs
What are typical closing costs in The Villages?
- Buyers often see about 2% to 5% of the purchase price when financing, and cash buyers about 1% to 2%; sellers often see 6% to 8% including commission, with 1% to 2% in other costs.
Who pays CDD assessments at closing in The Villages?
- Sellers usually cover any amounts due before closing, and buyers assume future annual assessments; the title company prorates based on the closing date and contract terms.
How much is an HOA estoppel letter in The Villages?
- Estoppel letters commonly run 100 to 400 dollars and are often seller-paid in Florida, though responsibility can be negotiated in the contract.
Are there recreation or HOA transfer fees for buyers?
- Many associations or recreation services charge small transfer or administrative fees, often 50 to 250 dollars; confirm the exact amount with the specific HOA or recreation office.
When will I know my exact closing costs?
- If you are financing, your lender provides a Closing Disclosure at least three business days before closing, and the title company issues a final settlement statement with exact amounts.
How are Florida property taxes handled at closing?
- Property taxes are paid in arrears and are prorated between buyer and seller based on days of ownership; the title company calculates the credit or charge.
Do cash buyers pay fewer closing costs?
- Yes; cash buyers typically avoid lender-related fees and may see about 1% to 2% in closing costs, plus any negotiated association or title items.
