Are you pricing a brand-new Sarasota home and wondering why your closing costs feel higher than a resale? You are not alone. New construction often carries a few extra line items that can surprise even experienced buyers. In this guide, you will learn what to expect, how Sarasota-specific fees work, and the exact documents to request so you can build a clear, personalized estimate. Let’s dive in.
New construction closing costs basics
New construction closing costs include many of the same categories as resale, with a few important additions. You will typically see:
- Title, recording and settlement fees
- State and local taxes on the deed and mortgage
- Lender fees and third-party reports
- Prepaids and escrow deposits for taxes and insurance
- Association charges and community fees
- Builder administrative charges and upgrade balances
- Potential CDD assessments and utility connection or impact fees
The difference is that builder, community, and infrastructure items often add layers that push totals to the higher end of typical ranges.
New construction vs. resale: key differences
New construction is more likely to include:
- Builder administrative or processing fees
- Upgrade and change-order balances charged at closing
- CDD assessments, impact or utility tap/connection fees
- Construction loan or conversion-to-permanent loan fees
- Initiation, amenity, or capital contributions for the HOA or master association
Resale is more likely to include:
- Seller concessions that reduce your out-of-pocket costs
- Repair credits tied to inspection negotiations
- Fewer infrastructure or connection charges
Timing differs too. New builds may require deposits during construction, progress payments for options, and a closing that depends on final inspections and punch-list completion.
Sarasota fees to expect and where to verify
Builder-related fees
Many builders charge a closing or administrative fee for document processing and orientation. You may also see balances for upgrades, change orders, or warranty-related items that are due at closing. Confirm what is included in your base price and what is billed later. Verify amounts with the builder sales office and the written buyer estimate or addenda.
Title, recording and settlement
You will pay for title search and exam, lender’s title insurance if you finance, and settlement or closing agent charges. Recording fees apply for the deed, mortgage, and related documents filed with the county. Verify title fees through your title company’s preliminary estimate and check recording charges with the Sarasota County Clerk of the Circuit Court.
State and local documentary taxes
Florida imposes documentary stamp taxes on deeds and taxes related to mortgages or notes. New mortgages may also incur an intangible tax. Counties can have local practices that affect how items are calculated or recorded. Verify rules with the Florida Department of Revenue and the Sarasota County recording office or clerk.
Lender and loan costs
Expect loan origination, processing, underwriting, credit report, appraisal, and flood certification fees. If you use construction financing, you may see additional charges for inspection draws, interest-only periods, and a conversion-to-permanent loan. Your lender’s Loan Estimate will list these items.
Prepaids and escrows
Prepaid costs cover items collected in advance, such as the first year of homeowner’s insurance, initial escrow deposits for taxes and insurance, and prorated mortgage interest. Associations can require prepaid dues or reserve deposits. Verify escrow and prepaid items with your lender, and use the Sarasota County Property Appraiser to understand assessed values and millage rates that influence tax estimates.
HOA and master association fees
Newer communities often charge a one-time initiation or transfer fee, plus a capital contribution or reserve deposit. There may be processing fees to obtain documents and amenity access. Verify all association-related charges in the HOA or master association documents and the community disclosure package.
CDD assessments, impact and utility connection fees
Many Sarasota-area master-planned communities are within Community Development Districts. Annual CDD assessments appear on your property tax bill and there can be transfer-related charges at closing. New construction may also involve impact fees or water, sewer, and meter connection charges. Verify CDD amounts through the CDD’s public records or the Sarasota County Tax Collector, and confirm impact or tap fees with the builder and relevant county utility departments.
Inspections and survey
Even on a new home, independent inspections are a smart step. Structural, termite, and mechanical inspections help you identify issues before final acceptance. Your lender may also require a survey. Check the builder contract for what is provided, and confirm survey requirements with your lender and title company.
Prorations and holdbacks
Your closing statement will include prorations for property taxes, HOA dues, and utilities as of the closing date. Builders sometimes use holdbacks or escrows for punch-list items that will be completed after closing. Review these items carefully in your purchase agreement and the builder’s standard closing documents.
Documents to request early
Ask for these three items as soon as you have a contract and a lender selected:
- Builder’s Closing Cost Estimate or Buyer Closing Cost Worksheet. This shows administrative fees, upgrades, and any builder-paid credits.
- Loan Estimate from your lender. This federally required document outlines lender charges, some title items, and your prepaids and escrow deposits.
- Title company preliminary costs. Request an itemized estimate for title insurance, title search and exam, settlement fees, and recording costs.
If your community has an HOA or CDD, also request the disclosure package with initiation fees, dues, and any special assessments, plus any community-specific fee schedules for impact or utility connections.
How to build your Sarasota estimate
Step-by-step
Note your contract price and list of selected upgrades. Include any options that the builder will bill at closing.
Pull your lender’s Loan Estimate. List lender fees, prepaid insurance, initial escrow deposits, and prorated interest.
Get the title company’s preliminary settlement costs. Add title insurance (owner and lender policies per local custom), title search and exam, settlement fees, and recording charges.
Add HOA or master association initiation fees, capital contributions, document or amenity fees, and any prepaid dues. Include prorations for dues.
Add builder-specific items. Include administrative or processing fees and outstanding balances for options.
Add state and local taxes on the deed and mortgage. Verify calculation methods with the Florida Department of Revenue and the Sarasota County recording office.
Add third-party items. Include inspections, a survey if required, and any utility connection, impact, or tap fees.
Present totals in three buckets:
- Fees due at closing
- Prepaids and escrow deposits
- Ongoing charges after closing, such as HOA dues and annual CDD assessments
Provide ranges where line items can vary and flag anything contingent on lender selection, credit choices, or specific community rules.
Smart questions to ask
For the builder
- Which fees do you charge at closing and which are included in the price?
- How are upgrades billed and when are they due?
- Will you offer a closing-cost credit, and how is it applied?
- Are there CDD, utility connection, or impact fees I should plan for? When are they collected?
For the lender
- What are my rate, points, and total lender fees on the Loan Estimate?
- What prepaids and escrow deposits will you collect at closing?
- If I use construction-to-permanent financing, what are the extra fees and the conversion process?
- How long is my rate lock and fee estimate valid?
For the title company
- What are the title insurance premiums for owner and lender policies based on this price and loan?
- What are recording charges for the deed and mortgage?
- Who pays the owner’s title policy in this transaction per local custom and the contract?
- Are there any association estoppel or processing fees to collect?
What cash and international buyers should know
- Cash purchases remove mortgage-related lender fees and any mortgage or intangible tax. You still pay title, recording, documentary stamp tax on the deed, prepaids for insurance if required by your carrier, and community-related charges.
- If funds are coming from outside the United States, coordinate early with your bank so wired funds arrive before closing. Confirm wiring instructions with your title company and follow their security procedures.
- Ask the title company how owner’s title insurance and holding title options work for your situation. Requirements vary by transaction and contract.
How we help you compare offers
The easiest way to see if a builder incentive is truly a savings is to compare the three estimates line by line. Look for who pays the owner’s title policy, whether the builder or lender credit offsets a fee elsewhere, and how association and CDD items are handled. If you are choosing between a builder’s preferred lender and an outside lender, request both Loan Estimates on the same day for a fair comparison.
As your advisors, we help you gather the right documents, confirm Sarasota-specific items with the title company and clerk’s office, and present your totals in plain language so you can plan with confidence.
Ready for a personalized estimate?
If you want a clear, Sarasota-specific closing-cost estimate for your new build, share these items and we will get to work:
- Contract price and your selected upgrades
- Your chosen lender and a current Loan Estimate
- Community name and HOA or master association documents
- Whether the community has a CDD
We will coordinate with the builder, lender, title company, association manager, and local offices to verify fees and timing, then present totals as due at closing, prepaids and escrows, and ongoing charges.
When you are ready to move forward, reach out to our boutique team for concierge guidance. Partner with Your Global Agents to request a Complimentary Consultation & Market Valuation, plus a personalized new-construction closing-cost estimate for your Sarasota community.
FAQs
Will a Sarasota builder pay my closing costs?
- Builders sometimes offer closing-cost credits or other incentives. These are negotiated and documented in your purchase agreement, and may be applied at contract or at closing.
Do I have to pay CDD or impact fees on a new build?
- If your community has a CDD or the local government bills impact or utility connection fees at transfer, they can be due at closing or added to your property tax bill. Verify in the HOA/CDD disclosures and with your title company.
Are inspections necessary for new construction in Sarasota?
- Independent inspections are still recommended. They help you identify issues before final acceptance. The builder’s warranty does not replace a pre-closing inspection.
Who pays for the owner’s title insurance policy?
- Local custom varies. In some Florida transactions the seller or builder pays, while in others the buyer pays. Confirm what your contract states and check with your title company.
How are property taxes handled on a brand-new home?
- New construction may have a different assessment in the first year. Prorations and initial escrow deposits appear on your closing statement. Check estimates with the Sarasota County Property Appraiser and the Tax Collector.
Are there extra utility hookup or meter fees?
- Yes. Water, sewer, reclaimed water, or stormwater connection and meter charges can appear at closing or on a separate invoice. Builders may include them in the price or pass them through. Verify with your builder and county utility department.
