Planning to close on a brand-new home in Sarasota? The final number at the closing table can surprise even seasoned buyers. You want clarity on what you will pay, what the builder might cover, and which Florida-specific items can add up. In this guide, you will learn how new construction closing costs work in Sarasota, how they differ from resale, and how to prepare so you feel confident from contract to keys. Let’s dive in.
What closing costs include
Closing costs are the third-party and prorated expenses due at closing aside from the purchase price. They can include lender fees, title and recording charges, prepaid insurance and taxes, prorations, and community-related fees. For a national overview of what falls into this bucket and how disclosures work, see the Consumer Financial Protection Bureau’s plain-language guidance on what closing costs include.
As a general guide, buyers often pay a few percent of the purchase price in closing costs. In new construction, the builder is the seller, and the final allocation is shaped by the contract and any incentives the builder offers.
How new construction closings differ
Builder as seller
Builders hold more control over the process than a typical resale. You may see preferred title companies, standard builder addenda, and structured timelines tied to construction milestones. Upgrades or options can be paid before closing or added to the amount due at closing.
Timing and inspections
New homes involve milestone inspections such as pre-drywall and a final walk-through. You will receive a builder warranty, and any punch-list items should be documented before closing. If a Temporary Certificate of Occupancy is in play, confirm how utilities, insurance, and any holdbacks will be handled until final completion.
Prorations and move-in details
Final utility meter transfers, HOA start dates, and CDD assessments can trigger prorations on your closing statement. Plan for these adjustments so your cash-to-close is not a surprise.
Common buyer costs in Sarasota
Here are line items buyers commonly see on Sarasota new-construction closings. Who pays each cost varies by contract and builder practices.
- Lender fees: origination, underwriting, processing, application, rate-lock, and document prep.
- Appraisal and credit report.
- Title charges: title search, settlement fee, and title insurance premiums for owner’s and lender’s policies. In many Florida markets, buyers often pay the owner’s policy, but this is negotiable and influenced by builder practices.
- Recording fees and state documentary stamp taxes related to the deed and, if applicable, the mortgage or note.
- Survey, if required by your lender or title company.
- Inspections: optional third-party inspections and your final walk-through support.
- Prepaid items and escrows: property insurance premium prepayment, property tax prorations, and initial escrow deposits for taxes and insurance.
- HOA or condo start-up costs: initiation or transfer fees, capital contributions, reserves, and prorated dues.
- CDD transfer fees or prorated assessments where applicable.
- Utility connection or tap fees where the community charges them.
Sarasota and Florida specifics
Documentary stamp and intangible taxes
Florida imposes documentary stamp taxes on deeds and certain written obligations, and intangible tax can apply to mortgages. Exact calculations are set by Florida law. For current rules, consult the Florida Department of Revenue guidance on documentary stamp tax and the statutory framework in Florida Statutes Chapter 201.
Recording fees
The Sarasota County Clerk records the deed and any mortgage documents and applies recording charges based on document type and pages. For local procedures and fee information, visit the Sarasota County Clerk of the Circuit Court.
HOAs and CDDs
Many new Sarasota communities have HOAs that collect an initiation fee and capital contribution at closing. Master-planned communities may also be within a Community Development District. CDDs levy assessments for infrastructure, and you may see a prorated assessment or transfer-related item on your closing statement. To understand how CDDs operate, review Florida Statutes Chapter 190, and use the Sarasota County Property Appraiser to research parcel-level tax details once available.
Who pays what and builder incentives
Builders often offer credits toward closing costs, rate buydowns, or upgrade allowances. These incentives must fit within mortgage program rules that limit seller or builder contributions.
- FHA: Seller concessions are generally allowed up to 6% of the lesser of the sales price or appraised value. Confirm specifics in HUD’s policy and your lender’s interpretation. See the FHA Single Family Housing Policy Handbook.
- VA: The VA allows the seller to pay many buyer closing costs, and certain seller concessions are commonly referenced at 4% for specific financed items. Work with a VA-experienced lender and review the VA lenders’ resources.
- Conventional: For loans following Fannie Mae or Freddie Mac guidelines, seller contribution limits vary by down payment. Common caps are 3% with less than 10% down, 6% with 10% to less than 25% down, and 9% with 25% or more down. Review your lender’s guidance and the Fannie Mae Selling Guide for current limits.
If a builder’s offer exceeds the program cap, the excess may need to be treated as a price reduction or otherwise adjusted. Ensure all concessions appear in the contract and on your lender disclosures.
How to estimate your total
- Start with your lender’s Loan Estimate, then verify the final numbers on the Closing Disclosure. The CFPB explains both documents and how to compare them in its Loan Estimate and Closing Disclosure overview.
- Ask the builder’s preferred title company for a sample closing statement with buyer vs. builder allocations.
- Budget for prepaid insurance and escrowed taxes in addition to third-party fees.
- Confirm any HOA initiation, capital contribution, and the first month of dues.
- If the community has a CDD, request the current assessment schedule and whether a transfer fee applies.
Buyer checklist before closing
Request these items early so you can confirm costs and avoid last-minute surprises:
- Fully executed purchase contract and addenda, including any builder credits, concessions, and all upgrades or options.
- A page-by-page estimate showing who pays each closing line item.
- HOA governing documents, current budget, reserve details, initiation or capital contribution amounts, and any move-in fees.
- CDD disclosure materials that show annual assessments and any transfer or connection fees.
- Builder warranty details and timelines for inspections, including the 30-day and 11 or 12-month checks.
- Title company contact and a sample or preliminary closing statement, if available.
- From your lender, a complete Loan Estimate and, later, the Closing Disclosure, plus clarity on escrow deposits and monthly escrowed amounts.
- Written confirmation of title insurance allocation between owner’s and lender’s policies.
- A breakdown of which charges the builder will pay as a seller concession versus a price adjustment.
Pro tips for a smooth Sarasota close
- Confirm documentary stamp and intangible tax estimates with your title and lender, since rates and calculations follow state rules.
- Nail down who pays the owner’s title policy. In many Florida markets buyers pay it, but this is negotiable and often part of builder incentives.
- Ask about HOA and CDD timing so prorations and dues are not a surprise.
- Schedule your final walk-through with time to address punch-list items. Clarify any holdback approach if minor items remain.
- If the home will close with a Temporary Certificate of Occupancy, confirm when utilities shift to you and how insurance will be handled until the final certificate.
Final thoughts
New construction closing costs in Sarasota are manageable when you understand the moving parts. Focus on the Florida-specific taxes, HOA and CDD items, and how your lender’s program shapes builder-paid incentives. With clear documents, early estimates, and the right team, your closing day should feel smooth and predictable.
If you want a concierge-level approach to Sarasota new construction, from contract strategy to a clean closing, connect with the Salaverri Windsor Group. We will help you structure incentives, review allocations, and coordinate with the builder, lender, and title so you can enjoy the moment the keys are in your hand.
FAQs
What are typical closing costs for a Sarasota new build?
- Buyers often pay a few percent of the purchase price in closing costs, which include lender, title, recording, prepaid insurance and taxes, plus any HOA or CDD items, with exact totals shaped by your contract and lender.
Who usually pays for title insurance on Sarasota new construction?
- In many Florida markets the buyer pays the owner’s policy, but this is negotiable and can be part of builder concessions, so confirm the allocation with your contract and title company.
How do CDD fees impact closing for a new Sarasota home?
- If the property is in a CDD, you may see a prorated assessment and possibly a transfer-related fee on the closing statement, and you should review the CDD disclosure for current assessments and terms.
How much can a Sarasota builder pay toward my closing costs?
- Program rules apply: FHA generally allows up to 6%, VA permits many costs with certain concessions commonly referenced at 4% for specific items, and conventional caps range from 3% to 9% based on down payment, subject to lender confirmation.
What documents should I request before a new-construction closing?
- Ask for your full contract with addenda, a line-by-line cost allocation, HOA and CDD disclosures, warranty details, a sample closing statement, and your lender’s Loan Estimate and Closing Disclosure.
