Do you know how much cash you actually need to close on a home in West Palm Beach? If you’re like most buyers, the numbers can feel unclear until the last minute. You want a simple, local breakdown so you can budget with confidence and avoid surprises.
In this guide, you’ll see what buyers typically pay in Palm Beach County, how much to budget, who usually pays what, and a quick calculator you can use today. You’ll also get an illustrated example with realistic numbers. Let’s dive in.
How much to budget in West Palm Beach
If you use a mortgage, plan for about 2%–4% of the purchase price in buyer closing costs. These costs are separate from your down payment. For an all-cash purchase, costs are usually lower, often around 0.5%–1.5% of the price.
Here are simple rule-of-thumb examples:
- $300,000 home with financing: about $6,000–$12,000
- $500,000 home with financing: about $10,000–$20,000
Actual totals vary with your loan type, rate options, insurance, and whether the seller gives a credit.
Buyer closing cost breakdown in Palm Beach County
Loan-related costs and taxes
- Origination or processing fee
- What it is: Your lender’s fee to create and process the loan.
- Typical range: 0.25%–1.0% of the loan amount or a flat $500–$2,000.
- Discount points
- Optional fee to lower your interest rate.
- Typical range: 0–2% of the loan amount.
- Appraisal
- Lender-required valuation.
- Typical range: $450–$800 in South Florida.
- Credit report, flood cert, underwriting
- Typical range: $25–$75 for credit, $10–$50 for flood cert, and $300–$900 for underwriting/processing combined.
- Mortgage recording fees
- County fees to record the mortgage.
- Typical range: $50–$250 in Palm Beach County depending on pages.
- Florida mortgage-related taxes
- Documentary stamp on the promissory note: $0.35 per $100 of the mortgage amount.
- Intangible tax: 0.002 of the mortgage amount.
Title and escrow fees
- Lender’s title insurance policy
- Required by your lender; premium based on loan amount.
- Typical range: hundreds to low thousands, often $300–$1,500+.
- Owner’s title insurance policy
- Protects you as the owner. In South Florida, the seller often pays this, but it is negotiable.
- If buyer pays, typical range: $400–$2,000+ based on price.
- Title search, exam, closing/settlement, document prep
- Typical combined range: $200–$900.
- Escrow/closing agent fee
- Charged by the title company or closing attorney.
- Typical range: $300–$800. Sometimes split or negotiated.
Government and county charges
- Recording fees for deed and mortgage
- Typical combined range: $50–$300 depending on page count.
- Documentary stamp tax on deed
- $0.70 per $100 of the purchase price.
- In South Florida, the seller commonly pays this, but it can be negotiated.
Prepaids and escrow reserves
- Property taxes
- Prorated from the closing date and an initial escrow deposit for the next tax bill.
- Amount depends on closing date and the property’s tax level.
- Homeowners insurance
- Lenders usually require you to pay the first-year premium at closing.
- Typical range: $800–$4,000+ depending on coverage and wind/hurricane risk.
- Flood insurance
- Required if the home is in a flood zone and you have a federally backed loan.
- Typical range: $500–$5,000+ depending on zone and coverage.
- Interest per diem
- Mortgage interest from your closing date to the first payment.
- Typical range: often $100–$1,000+ depending on timing.
- Initial escrow deposit
- Many lenders collect 2–6 months of reserves for taxes and insurance.
- Example range: often $800–$2,400 or more, depending on your annual amounts and lender policy.
Inspections and HOA items
- Home inspection
- Typical range: $300–$700+ depending on size and scope.
- Termite/WDO inspection
- Typical range: $50–$200.
- Survey or survey affidavit
- If required, typical range: $300–$1,200.
- HOA-related fees
- Estoppel fees are often seller-paid in local practice but can be split. Check your contract and HOA rules.
Who pays what in West Palm Beach
Local custom matters. In Palm Beach County and across South Florida, it is common for the seller to pay the owner’s title insurance premium and the state documentary stamp tax on the deed. Buyers typically pay the lender-related costs, the documentary stamp on the mortgage, the intangible tax, prepaids for insurance and taxes, inspections, and the recording fees for the mortgage.
These items are negotiable. In a competitive seller’s market, sellers may be less willing to provide credits. In a more balanced market, buyers sometimes receive seller concessions, subject to loan program limits. Ask your lender for the exact cap on seller-paid costs for your loan type and down payment.
Quick calculator: estimate your closing costs
Use this as a planning tool. Always confirm exact amounts with your lender and title company.
Inputs to gather
- Purchase price (P) and loan amount (L)
- Lender origination fee or percentage
- Discount points, if any
- Appraisal and inspection estimates
- Annual property tax estimate (T)
- Annual homeowners insurance estimate (I)
- Lender escrow reserve months (ER)
- Target closing date and interest rate
Simple formulas
- Doc stamp on mortgage: 0.0035 × L
- Intangible tax: 0.002 × L
- Prepaid insurance: I (first-year premium)
- Initial escrow deposit: (T/12 × ER) + (I/12 × ER)
- Interest per diem: (L × annual rate ÷ 365) × days to first payment
Example estimate
Scenario: P = $400,000; L = $320,000 (80% LTV)
- Origination fee: 1.0% of L = $3,200
- Appraisal: $600; credit report: $35; processing/underwriting: $600
- Doc stamp on mortgage: 0.0035 × 320,000 = $1,120
- Intangible tax: 0.002 × 320,000 = $640
- Lender’s title policy: $900
- Recording fees: $150
- Homeowners insurance (first year): $1,800
- Initial escrow deposit: assume annual taxes $4,800 and insurance $1,800; reserve 4 months total. Monthly taxes $400 + insurance $150 = $550; $550 × 4 = $2,200
- Interest per diem: assume 4.5% rate and 15 days to first payment ≈ $592
Estimated total buyer closing costs: $11,837, which is about 2.96% of the $400,000 price. If the owner’s title policy is buyer-paid in your deal, add that premium.
Ways to reduce your cash to close
- Ask about seller credits
- Request a closing cost credit within your loan’s concession limits.
- Compare lenders
- Get quotes for origination fees, rates, and points to see the best net outcome.
- Time your closing date
- Closing near month-end often lowers per diem interest.
- Shop insurance early
- Compare carriers and coverage levels. Wind and flood endorsements can vary in price.
- Decide on points
- Paying points lowers your rate but increases upfront costs. Run the break-even with your lender.
What to do next
- Request a Loan Estimate from your lender with all fees and credits.
- Ask the title company for a closing cost worksheet for your specific contract.
- Confirm who pays the owner’s title policy and deed taxes in your offer.
- Review insurance options early so you can lock costs before closing.
Have questions about a specific property in West Palm Beach, Boca Raton, or Delray Beach? Connect with our local team for a detailed closing cost plan and purchase strategy. Reach out to The Ana Vega Group for a personal, bilingual consultation.
FAQs
How much are buyer closing costs in West Palm Beach?
- Most buyers using a mortgage should plan for about 2%–4% of the purchase price, while all-cash buyers often see 0.5%–1.5% depending on title, recording, and insurance.
Who usually pays owner’s title insurance in Palm Beach County?
- It is common for the seller to pay the owner’s title policy in South Florida, but this is negotiable and should be confirmed in your contract.
Which state taxes do West Palm Beach buyers pay at closing?
- Buyers typically pay the documentary stamp tax on the mortgage at $0.35 per $100 of the mortgage amount and the intangible tax at 0.002 of the mortgage amount.
Can a seller cover some of my closing costs?
- Yes. Seller concessions are common but limited by your loan program and down payment. Ask your lender for the maximum allowed.
Will my lender require an escrow account for taxes and insurance?
- Most lenders collect an initial escrow deposit at closing and add monthly escrow to your payment. The amount depends on lender policy and timing.
Do I need flood insurance in West Palm Beach?
- If the home is in a FEMA flood zone and you have a federally backed loan, flood insurance is required. Many buyers outside high-risk zones still choose coverage for added protection.
