1.) CDD/HOA Fees
CDD fees come from a loan that a builder takes out with the state. It is what pays for roads, lights, clearing of land, amentiy centers, all of the infrastructure that comes with building a new neighborhood. As homes sell, the builder passes that payment onto the home owner. 75% of the entire CDD fee is the actual loan portion to the state. The other 25%ish is the operations and maintenance fees. The CDD fee is paid on your tax bill every year. The great part.......is that much of the CDD fee can be written off of your taxes!!!
There are neighborhoods that have HOA as well as CDD fees. If a neighborhood as BOTH the HOA fee is typically very small. Often it's about $50-$100 for the year.
Other neighborhoods that do not have CDD fees have HOA fees to keep neighborhoods nice. We always like to say that a small HOA is nice....it keeps everything nice and neat and clean. There are some HOA's where the fee includes basic items like cable or internet.
2.) Taxes/Homestead Exemption
The State of Florida has what's called Homestead Exemption. When you are a resident of Florida you are able to Homestead your primary residence and have up to $50,000 of the taxable value of your home reduced. Meaning if your home's taxble value is $200,000 you pay taxes as if your home's taxable value was $150,000.
Quite often the taxable value of your home is NOT the market value of your home.
As everyone knows......your tax bill comes once a year and every year the county property appraiser goes out and completes a valuation of the property and taxes are figured from that number.
3.) Closing cost:
Closing cost is very important to consider when purchasing or selling a home. Buyer’s closing cost usually consists of administrative fees charged by the lender, which are necessary to facilitate mortgage approval, and can usually range from 2-5% of the purchase price. On the other side of the coin seller’s closing costs usually include brokerage commission, repairs if any are needed which are negotiable, title policy, and any prorated fees or taxes that may apply to the real property all said and done sellers usually pay 6-9% of the sales price. You can think of buyers closing cost as the cost of due diligence, because nobody wants to buy a lemon, and the bank will certainly not put a lemon on their books. On the flip side you can compare sellers closing cost to the cost of professional marketing and buyer’s peace of mind.
4.) Inspection and survey fees:
Two buyer’s fees that are necessary for a mortgage, and a really good idea for cash buyers.
A good home inspection, in my professional opinion, is the best way to position you as a buyer. Typical cost of a home inspection is $300 and up depending on the size of the home – it’s an affordable way to have great peace of mind and to really know what you and your family are getting into. Home inspections will save 1000’s because the inspector is looking for problems with the big-ticket items, and not a honey do this list.
You want to make sure that whether you are paying thousands or hundreds of thousands of dollars for is actually the real deal, never judge a book by its cover, and that’s why lenders require a current survey of the land for them to put the real property on their books.
5.) Down Payments / Binders
It's imperative that when working with an agent and lender you understand the fees that come with writing an offer and obtaining a loan.
When putting an offer in a home that you want to purchase you will putting up a certain amount of earnest money also known as a binder check. This money is typically 1-2% of the purchase price and held in escrow until closing. It can/will go towards to closing costs or down payment. If the property is desirable or in multiple offer situation the large the binder deposit the stronger the contract on the property. It shows the seller how serious you are about purchasing the home and that you are willing to potentially a certain amount of money if you were to back out of the contract for no reason.
In addition to the binder amount there may also be a down payment owed depending on the type of loan you are applying for with your lender. An FHA loan requires a down payment of 3.5%, a Conventional Loan requires a downpayment of at least 5% and up to 20%, VA and USDA Loans do not require a down payment at all.