New construction closing costs in St. Johns County are often higher and more complex than buyers expect because they include builder-controlled fees, preferred lender structures, prepaid escrows, and community-specific costs that are rarely emphasized in marketing materials.

What Are New Construction Closing Costs in St. Johns County?

• Standard buyer closing costs still apply (lender, title, recording fees).
• Builders often add administrative and compliance-related fees.
• Preferred lender incentives can shift costs rather than eliminate them.
• Prepaid items and escrows are often higher on new builds.
• Community features like CDDs can increase upfront expenses.

The Closing Costs Buyers Expect (and Usually Budget For)

Most buyers enter a new construction purchase assuming closing costs will look similar to a resale transaction. These include lender origination charges, appraisal fees, title insurance, recording fees, and prepaid items like homeowners insurance and property taxes.

Those costs are real, predictable, and unavoidable. Where buyers get caught off guard is assuming these are the only expenses they’ll see. Builder contracts in St. Johns County routinely include additional layers of costs that don’t exist—or are far less common—in resale transactions.

This is especially important for relocating buyers who are unfamiliar with Florida-specific practices and investors underwriting deals based on incomplete estimates.

Builder Fees That Rarely Get Highlighted Upfront

Most builders in St. Johns County use standardized contracts designed to protect their timelines, pricing models, and margins. Within those contracts are fees that are easy to overlook but materially impact your bottom line.

Common examples include administrative fees, compliance or document preparation fees, and settlement coordination charges. These are not lender fees and not negotiable in most cases. They exist because the builder controls the transaction from contract to closing.

Because these fees are presented as “standard,” many buyers don’t question them—until they compare their final settlement statement to their original estimate.

"I would just like to say if anyone is looking to buy, Kim is the agent for you. Especially for a first time home buyer. She guided us through the whole process and stayed in touch with updates and time frames to complete or turn in information. She either explained any and every question or had the right person explain it for us. For my first experience in the home buying Market, Kim made it simple and enjoyable. She stayed with us through the whole thing and did everything she could to make us happy and satisfied with our purchase. Even with this COVID-19 pandemic she still gave us a tour of the house and provided PPE for safety. I would choose Kim any day for home purchase. She is HIGHLY RECOMMENDED by Me and MY Family.... Thank you Kim..." -Marvin D.

The Truth About “Preferred Lender” Closing Cost Incentives

One of the most misunderstood aspects of new construction is the advertised closing cost incentive. Builders often promote thousands of dollars toward closing costs—but only if the buyer uses the builder’s preferred lender and title company.

While this can reduce out-of-pocket expenses at closing, it may come with tradeoffs. Interest rates, lender fees, and long-term loan costs can differ from outside options. In some cases, buyers are simply shifting where they pay rather than eliminating costs altogether.

The key is understanding the total financial picture, not just the line item labeled “builder credit.”

Prepaids, Escrows, and Community-Level Costs

New construction in St. Johns County often sits within master-planned communities that include Community Development Districts (CDDs), enhanced amenities, and newer infrastructure. These features add value—but they also affect closing costs.

Buyers may see higher prepaid amounts for taxes, insurance, and HOA dues, particularly when homes close mid-year or near tax assessment changes. These aren’t surprise fees—they’re timing-related costs that buyers aren’t always prepared for.

Understanding these items in advance helps avoid frustration at the closing table.

"We had a great experience working with Kristen. Process was smooth and everything went as expected . Thank you" -Sunder C.

Investor Considerations: Underwriting Beyond the Base Price

For investors, the danger is assuming builder incentives improve returns without fully modeling long-term costs. Higher interest rates, CDD assessments, insurance premiums, and HOA fees can materially impact cash flow.

Smart underwriting in St. Johns County requires separating marketing incentives from structural costs and evaluating the full ownership picture over time—not just the purchase moment.

FAQ

Do builders really pay closing costs in St. Johns County?
Not entirely. Incentives usually come with conditions and often shift costs rather than eliminate them.

Are new construction closing costs higher than resale?
They can be, due to builder fees, escrows, and community-related expenses.

Can buyers negotiate these costs?
Some elements can be influenced through incentives, but many fees are fixed by the builder.

Final Takeaway

New construction in St. Johns County offers modern homes and planned communities—but the closing cost structure is not as simple as it appears. Buyers who understand what’s included, what’s conditional, and what’s rarely discussed make better financial decisions and avoid last-minute surprises.

Next Steps

If you'd like help navigating this topic, reach out to the Kim Devlin Team, your qualified real estate professional or continue exploring helpful resources!