Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For buyers, they are usually about 4-6% of the total sales price of a property. Some of the closing costs you might encounter are: application fees, appraisal fee, county taxes, credit report, discount points, documentation fee, escrow fees, homeowners' association fees, loan fees, mortgage insurance, origination fees, tax registration and title insurance premium. See who customarily pays what below.

What is a point? 

One point is equal to 1% of the new loan amount. Whenever government regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest that would make the real estate loan competitive with other fields of investments, the lender must seek some method of increasing the yield for the investors. By charging "points", the lender can bring the real estate loan up to those other investments

What is earnest money? 

When you make an offer, you will need to put up an earnest money deposit as a sign of good faith that you are seriously interested in buying a home. That deposit becomes a part of the purchase price and is held in a trust account until there is full acceptance of the offer. Typically, an earnest money deposit is not less than a thousand dollars up to 1% of the offer amount.

Who pays for which expenses at closing? 

Closing costs are customarily, but not always, divided between the buyer and seller, as follows:

Florida Buyer Closing Costs 

•Recording Fees - Record Deed: $6.00 first page, $4.50 each additional page; Record Mortgage: $6.00 first page, $4.50 each additional page 
•State Documentary Stamp Tax - $0.35 per $100.00 
•Intangible Tax - 2 mils per dollar of exact mortgage amount (approx. $2 per thousand) 
•Taxes - Current year's real estate taxes are prorated at closing and the Lender usually requires 6 month in advance. 
•Termite Inspection - $45.00 - $125.00 
•Survey - $225 - $350 
•Lender's Title Insurance Policy - If issued simultaneously with Owner's Policy, $400 to $600 in most cases. (10% of the owner's Policy ) 
•Endorsements to Lender's Policy - If required by Lender, $35.00 and up depending on type of endorsement - add $50 for condos. 
•Express Mail - If applicable, charged to the appropriate party $25 - $50 
•Insurance -  This can vary but usually about 6 months in advance is paid at closing. Condos fees that include insurance may not require this to be pre-paid. 

(NOTE: costs varies by State. These are Florida Closing Costs).

Florida Seller Closing Costs 

•State Documentary Stamp Tax for Deed of Conveyance - $0.70 per $100.00 of sales price or fraction thereof. (NOTE: costs varies by State. These are Florida Closing Costs).
•Assessment Search - $15.00 - $40.00, depending on City 
•Owner's Title Insurance Policy - Based on the sales price  ($5.75 per $1000) up to $100,000 & $5.00 per$1000 after $100,000 
•Taxes - Current year's real estate taxes are prorated at closing 
•Title Search, Exam and Closing Fee - Approximately $200.00

What items are needed at closing? 

You will want to have these items complete or in hand when you come to the closing (please confirm with your escrow officer prior to closing):

Buyer 

•Buyer's copy of purchase agreement 
•Cashier's check for amount needed to close 
•Proof of purchase of insurance for fire, casualty, etc. 
•Photo identification (passport, driver's license, or state-issued identification card)

Seller 

•Seller's copy of purchase agreement 
•Any unrecorded instruments that affect the title 
•Proof of satisfaction of any mechanics' liens, chattel mortgages, judgments, or mortgages that were paid prior to the closing 
•Photo identification (passport, driver's license, or state-issued identification card)

Note: There are loan costs, which vary, depending upon the Mortgage Company and/or the type of loan that the buyer might choose.  Not all of the above fees are applicable if the buyer is assuming your current loan or paying cash.  If the buyer chooses an FHA or VA loan there are certain costs that the seller must pay per government guidelines.