Closing costs are the fees and expenses required to finalize a real estate sale — things like lender fees, title services, escrow charges, prepaid taxes, and insurance. Both buyers and sellers typically pay a share, though exactly who covers what depends on the purchase agreement, financing, and local custom. Here’s a clear breakdown of what to expect before you sit down at the closing table.
Whether you’re buying your first home in St. Augustine, upgrading to a larger property in Ponte Vedra, or listing a home in Palencia, closing costs are one of the most misunderstood parts of the transaction. Buyers across St. Johns County often budget carefully for their down payment but forget to set aside additional funds for settlement expenses. Sellers, meanwhile, are sometimes surprised by what comes out of their proceeds at the closing table. Understanding these costs ahead of time helps both sides plan with confidence.
What Buyers Typically Pay
Buyers generally cover the expenses tied to securing their loan and completing the paperwork that transfers the property into their name. These costs usually run between 2% and 5% of the purchase price, depending on the loan type and lender.
- Loan origination and underwriting fees
- Appraisal and inspection costs
- Title insurance and escrow fees
- Prepaid property taxes and homeowner’s insurance
- Recording fees
What Sellers Typically Pay
Sellers usually take on costs tied to the sale itself rather than the financing. In many Northeast Florida transactions, agent compensation is the largest of these expenses.
- Real estate agent compensation (as negotiated in the listing agreement)
- Transfer taxes, where applicable
- Outstanding liens or prorated property taxes
- Any agreed-upon repairs or credits
When Negotiation Comes Into Play
Closing costs aren’t always split the same way in every deal. In competitive listings or first-time buyer transactions, sellers sometimes agree to contribute toward a buyer’s closing costs as an incentive to help move the sale forward. This is a point worth discussing early with your agent so it can be built into the offer strategy from the start, rather than negotiated under pressure near closing day.
Frequently Asked Questions
How much should I expect to pay in closing costs?
Buyers typically pay between 2% and 5% of the purchase price, while seller costs vary more widely depending on agent compensation and any negotiated concessions.
Can a seller help cover my closing costs as a buyer?
Yes, sellers can agree to contribute toward a buyer’s closing costs, and this is often negotiated as part of the purchase offer.
When do I actually have to pay my closing costs?
Closing costs are due at settlement, so the funds need to be ready before or on the day the transaction closes.
The Bottom Line
Closing costs are a normal part of every real estate transaction, but the amount and division of those costs can vary widely based on your specific deal. Planning ahead — and asking the right questions early — makes closing day far less stressful. Before closing day arrives, ask your Berkshire Hathaway HomeServices network agent for an estimate of potential costs and strategies that may help you prepare for a smooth transaction.
If you are considering buying or selling in Northeast Florida, contact Danielle Fraser, P.A.
Call or text 904-907-4559 , email danielle@