Closing Costs for Buyers in Key West: A Complete Breakdown

What are the closing costs for buyers in Key West, Florida?

Buyers purchasing a home in Key West typically pay 2%–5% of the purchase price at closing if financing, or 1%–3% if paying cash. On a $1.5 million financed purchase, expect roughly $35,000–$55,000 in total closing costs—including Monroe County–specific fees like documentary stamp tax on the mortgage note ($0.35 per $100 of the loan), intangible tax ($2 per $1,000 of the loan), and Keys-specific insurance prepaids that often run $12,000–$18,000 for the first year alone. Cash buyers skip the lender-related costs entirely, bringing their out-of-pocket closing total to roughly $3,000–$6,000 (not counting ongoing insurance).

By Jimmy Lane | July 21, 2026

Most buyers coming to Key West from the mainland budget 2–3% for closing costs—and arrive at the table surprised. Sometimes very surprised.

The Keys are different. Monroe County has its own closing customs, Florida has taxes that don't exist in most other states, and the insurance prepaid costs here are among the highest in the country. If you're comparing a $1.5 million purchase in Key West to a $1.5 million purchase in, say, Atlanta or Phoenix, your cash-to-close number looks nothing alike.

Here's exactly what you'll pay, and why.

Cash Buyers vs. Financed Buyers: A Big Difference

Before getting into line items, it's worth saying clearly: if you're paying cash, your closing costs are dramatically lower.

Cash buyers in Key West skip the documentary stamp tax on the mortgage note, the intangible tax, and all lender fees. Those three categories alone can total $15,000–$25,000 on a $1.5 million purchase. Cash buyers also don't need a lender-required appraisal, though most get one anyway for their own protection.

What cash buyers still pay: title endorsements, recording fees, their inspection costs, a survey, an elevation certificate, and the first year of insurance if they choose to carry it (which, in a flood zone, most do). All in, a cash buyer closing in Key West typically pays $3,000–$6,000 at the table—not counting the ongoing insurance cost, which isn't technically a closing cost but does get paid at or around that time.

If you're financing, read on. There's more to plan for.

The Florida Taxes Mainland Buyers Don't Know About

Florida charges two taxes that don't exist in most states, and both fall on the buyer when there's a mortgage.

Documentary stamp tax on the mortgage note: $0.35 per $100 of the loan amount. On a $1.2 million mortgage (80% of a $1.5M purchase), that's $4,200. This is separate from the documentary stamp tax on the deed—that one, at $0.70 per $100, is paid by the seller in Monroe County. Buyers pay the one on the note.

Non-recurring intangible tax: $2 per $1,000 of the mortgage. On the same $1.2 million loan, that's another $2,400. Both taxes are paid at closing, payable to the Monroe County Clerk of Court.

Together, those two line items add $6,600 to your closing costs on a $1.2 million mortgage. Cash buyers pay neither.

Title Insurance: One Thing That Actually Goes Your Way

In Monroe County, the seller customarily pays for the owner's title insurance policy. That's the standard across most of Florida. (The four exceptions are Miami-Dade, Broward, Sarasota, and Collier counties—where buyers typically pay. Monroe is not on that list.)

So as a buyer, you're getting the owner's title policy as part of the deal without paying for it—which on a $1.5 million property is meaningful. You will, however, need to pay for a lender's title insurance policy if you're financing. That policy protects the bank, not you, and it typically runs $400–$700.

Lender Fees

If you're financing, your lender will charge origination and underwriting fees in addition to the taxes above. What you'll see on the Loan Estimate:

• Loan origination: 0.5%–1% of the loan amount ($6,000–$12,000 on a $1.2M loan)
• Underwriting fee: $400–$600
• Processing fee: $400–$600
• Credit report: $30–$50

Some lenders bundle these differently, and you can sometimes negotiate origination down, especially if you're not buying points. Shop at least two lenders on a Keys transaction—the spread can be meaningful.

The Biggest Surprise: Insurance Prepaids

This is where most mainland buyers get caught off guard, and it's the line item I talk through with every buyer before we go under contract.

Monroe County has the highest average flood insurance rates in Florida—roughly $1,905 per year according to industry data, compared to statewide averages well below that. When you add wind insurance and hazard/homeowners coverage, total annual insurance on a $1.5 million Keys property typically runs $10,000–$18,000 depending on flood zone, elevation, and construction type.

If you're financing, your lender requires the first year's insurance premium to be paid at or before closing. They'll also collect two to three months of insurance escrow reserves. That means your insurance-related cash-to-close on a typical Keys property can run $12,000–$20,000—before you've paid a single ongoing premium.

A few things that affect where you land in that range:

• Flood zone: Properties in Zone AE or VE carry higher premiums than Zone X. Many Old Town properties are in AE; coastal and waterfront properties in VE carry the highest rates.
• Elevation above base flood elevation (BFE): Homes built higher than BFE can see premiums hundreds or even thousands of dollars lower per year. This is why an elevation certificate matters at closing.
• Assumable flood policies: If the seller has a grandfathered NFIP policy at a low premium, assuming it can save you $2,000–$4,000 a year going forward—and reduce your closing cost prepaid accordingly. Not every property qualifies, but it's always worth asking.
• Wind mitigation inspection: A $150–$300 inspection that documents your home's roof-to-wall connections, roof shape, and opening protection. A strong report can reduce your wind insurance premium by $2,000–$5,000 annually. Get one during the inspection period.

Inspection and Due Diligence Costs

These aren't paid at the closing table—they're paid during the inspection period—but they're part of your total acquisition cost:

• Home inspection: $400–$700. The Keys market has older conch-style homes, elevated structures, and significant saltwater exposure. A good Keys inspector knows to look at things a mainland inspector might miss.
• Elevation certificate: $400–$700. Commissioned from a licensed surveyor, this document shows exactly how high your home sits relative to BFE in your flood zone. It's the key input for your flood insurance quote and can change your premium significantly. Most buyers in Key West get one.
• Survey: $500–$1,200. Standard for financed purchases; strongly recommended for cash purchases. Waterfront and irregularly shaped lots on the higher end.
• Appraisal: $700–$900 (required by your lender if financing; higher than the Florida average because Keys appraisers are specialists working in a high-value, low-comp market).

Property Taxes at Closing

Property taxes in Monroe County run approximately 1% of the purchase price per year. On a $1.5 million home, that's around $15,000 annually.

At closing, you'll prepay a prorated share of the year's taxes based on when you close, and your lender will typically collect two to three months of additional escrow reserves. Budget $3,000–$5,000 in tax-related prepaid depending on your closing date.

One thing worth knowing: if this is a second home or vacation property—which describes most Key West purchases—you don't qualify for Florida's homestead exemption. That exemption reduces assessed value by $50,000 and caps annual assessment increases at 3%. Without it, your taxes reassess fully to the purchase price on every sale, and your annual cap is 10% instead of 3%. I covered the full picture of Key West taxes in a separate post if you want to dig into that before buying.

Attorney Closing Fee

In Key West, closings are handled by a real estate attorney—not a title company. The attorney holds escrow, reviews the title, and manages the closing process. Their fee is typically $500–$1,500, charged to the buyer in most transactions. This is standard practice in the Keys, and it's one of the things that makes a Key West closing different from what many mainland buyers expect.

Condos: One Additional Layer

If you're buying a condo, add the cost of an estoppel certificate ($250–$500), which confirms the seller's HOA standing and any outstanding balances or pending assessments. Your lender will also require a condo questionnaire, which the association provides.

Before you close on a condo, review the HOA's reserve fund, most recent reserve study, and board minutes. Florida's new building law (FL Statute 553.899, enacted after Surfside) requires milestone structural inspections and mandatory reserves for buildings three stories or taller that are 25+ years old. Many Keys condo associations are still catching up to these requirements—an underfunded building is a future special assessment waiting to happen.

What a $1.5M Financed Purchase Actually Costs at Closing

Here's a realistic estimate for a $1.5 million Key West purchase with 20% down ($1.2M mortgage):

Line Item	Estimated Range
Doc stamp tax on mortgage note ($0.35/$100)	$4,200
Intangible tax on mortgage ($2/$1,000)	$2,400
Lender origination / underwriting / processing	$8,000–$14,000
Lender's title insurance policy	$500–$700
Appraisal	$700–$900
Survey	$700–$1,200
Elevation certificate	$400–$700
Home inspection + wind mitigation	$600–$1,000
Attorney closing fee	$500–$1,500
Insurance prepaid (first year + 2–3 months escrow)	$12,000–$20,000
Property tax prepaid (proration + 2–3 months escrow)	$3,000–$5,000
Recording fees / miscellaneous	$200–$400
Total	$33,000–$52,000

Your actual number will depend on which flood zone you're in, how much elevation your home has, what your lender charges, and the timing of your closing relative to the tax year. The only way to get a precise figure is to run it with a local lender and your closing attorney once you're under contract.

For comparison: the same $1.5 million purchase paid in cash would typically cost $3,500–$6,000 at the closing table—plus first-year insurance, which you'd pay regardless of how you financed.

This is exactly the kind of cost picture I build for every buyer I work with before they make an offer. If you're also curious what sellers pay on the other side, I broke down those costs in a separate post.

Frequently Asked Questions

How much are closing costs for buyers in Key West, Florida?

Financed buyers in Key West typically pay 2%–5% of the purchase price at closing. On a $1.5 million home with 20% down, expect $33,000–$52,000 in total closing costs, including Monroe County fees, first-year insurance prepaids, and lender fees. Cash buyers pay significantly less—typically $3,500–$6,000—because they skip lender fees, documentary stamp tax on the mortgage, and intangible tax.

Do buyers pay documentary stamp tax in Florida?

In Florida, buyers who finance their purchase pay documentary stamp tax on the mortgage note at $0.35 per $100 of the loan amount. On a $1.2 million mortgage, that's $4,200. Buyers also pay a non-recurring intangible tax of $2 per $1,000 of the loan—another $2,400 on the same mortgage. Cash buyers pay neither. The documentary stamp tax on the deed ($0.70 per $100) is paid by the seller in Monroe County.

Who pays for title insurance when buying in Key West?

In Monroe County, the seller customarily pays for the owner's title insurance policy—the same custom followed in most of Florida. As a Key West buyer, you won't pay for the owner's policy, but if you're financing, your lender will require you to purchase a separate lender's title insurance policy at your expense (typically $500–$700).

Why are insurance costs so high at closing in Key West?

Monroe County has the highest average flood insurance rates in Florida—around $1,905 per year. Add wind insurance ($3,000–$8,000+ in the Keys) and hazard insurance, and your first-year insurance cost on a $1.5 million property can run $12,000–$18,000. Lenders require that first year's premium paid at or before closing, plus two to three months of escrow reserves. For financed buyers, insurance prepaids are often the single largest line item at closing.

What is an elevation certificate and do I need one in Key West?

An elevation certificate documents how high a structure sits relative to the base flood elevation in its flood zone. In Key West—where nearly all properties fall in flood zones AE, VE, or X—the elevation certificate directly determines your flood insurance premium. A home above BFE can see premiums $500–$2,000+ lower per year than an identical home at or below BFE. Elevation certificates for existing structures cost $400–$700 and are typically obtained during the inspection period, paid by the buyer.

Buyer closing costs in Key West have more moving parts than most markets—and more of them than most buyers expect. The insurance prepaid alone separates the Keys from almost anywhere else in the country.

If you're working through these numbers for a specific property, I'm happy to walk you through a realistic estimate before you make an offer. Reach out anytime.

About Jimmy Lane
Jimmy Lane is a licensed Florida Real Estate broker serving Key West and the Florida Keys. Jimmy has been a full time broker for over 25 years and sold thousands of Florida Keys properties.