Florida Closing Costs Guide

May 23rd 2024
Florida closing costs are the fees and expenses that come with buying or selling a home in the state. These costs are essential because they mark the official transfer of the property from the seller to the buyer. This article explains who pays these costs, how much they usually are, and what specific fees you might encounter.

Seller closing costs in Florida are usually between 5% to 10% of the home's price, while buyers can expect closing costs between 1% to 3%.

Whether you're buying or selling a home, knowing about closing costs can help you avoid any surprises and ensure a smooth transaction.

hash-markTable Of Contents

Who Pays Closing Costs in Florida?
Seller Closing Costs in Florida
Buyer Closing Costs
How Much Are Closing Costs in Florida?
Florida Closing Costs Bottom Line

hash-markWho Pays Closing Costs in Florida? 

In Florida, both the buyer and the seller share the responsibility for closing costs, but these costs are typically divided based on their roles in the home sale. Sellers usually pay for the real estate agent commissions, which can be between 5% and 6% of the sale price, along with transfer taxes, title insurance, settlement fees, any outstanding amounts on the property like utility bills or homeowner’s association fees, prorated property taxes, and fees for HOA and municipal lien searches.

Buyers, on the other hand, usually cover appraisal fees, loan origination fees, inspection fees, optional survey fees if required by the lender, credit report fees, and recording fees for registering the sale and transfer of the property. While sellers generally have higher costs due to the real estate agent commission, both parties can negotiate who pays for certain expenses to help close the deal smoothly.

hash-markSeller Closing Costs in Florida

Seller closing costs in Florida are typically between 5% to 10% of the purchase price. The largest seller's closing cost is the Florida realtor commission, which is typically between 5% to 6%. A great way to save on the real estate commission in Florida is to hire a transaction broker. Here's a  breakdown of some of the most common closing costs that a seller in Florida may have to pay for to complete a real estate deal.

  • Outstanding amounts: if there are any outstanding amounts still owed on the property, including things like utility bills or homeowner’s association fees, these will likely be paid by the seller.
  • Real estate agent commission: this is usually between 5% and 6% of the sales price, and it’s the fee for the real estate agent connecting a seller to a buyer. However, prices in Florida can also drop to as low as 2.5% or so depending on the realtor you contact.
  • Settlement fees: these usually amount to between $300 and $600 and are dictated by the state. Florida doesn’t require an attorney to be present at the closing of a real estate deal, so you don’t need to necessarily pay attorney fees.
  • Title search fees: usually between $100 and $200. This covers the cost associated with checking a home’s ownership history to make sure there aren’t any title complications.
  • Prorated property taxes: in Florida, property taxes are paid in arrears, meaning a seller owes property taxes for however much of the taxable year they owned the house, and that amount will also be prorated.
  • HOA and municipal lien search: these costs are between $200 and $700 in total. The former covers fees to confirm that the home and current owner is in good standing with the homeowner’s association, while the latter covers a search for any unrecorded property issues, like expired permits or code violations.
  • Transfer tax:  The Florida Transfer tax/documentary stamp fee will also have to be paid to the local county when the deed transfer is recorded. For all Florida counties except for Miami-Dade, this is $.70 per $100 paid for the property. For Miami-Dade County, it’s $.60 per $100 for single-family homes, plus a surcharge for other property types
  • Title insurance: this last fee is decided by the state and is based on the overall purchase price. This fee is negotiable, and the buyer sometimes pays it instead of the closer, depending on the deal.

hash-markBuyer Closing Costs

Typically, the buyer closing costs in Florida will add up to around 1-3% of the purchase price. Florida buyer closing costs include appraisal fees, loan origination fees, inspection fees, and recording fees. Cash buyers will pay the lowest closing costs. In Florida, cash buyers will pay less than 1% in closing costs. 

Here's an overview of the closing costs you can expect to pay when buying a home in Florida.

  • Appraisal fees: these are usually between $300 and $500. This determines the value of the home for loan purposes.
  • Optional survey fees: normally between $300 and $500, some lenders require surveys of a property before they’ll release a loan to a buyer. Costs can vary based on home location and size.
  • Loan origination fees: these are between 0.5% and 1.5% of the sales price. They cover all associated loan fees, such as prepaid interest, application fees, and loan origination fees.
  • Credit report costs: at times, lenders charge a fee to check the buyer’s credit score and history.
  • Inspection fees: often between $300 and $600, this covers the costs associated with investigating a home before the deal is closed. Some companies can do an inspection for cheap.
  • Recording fees: Florida counties incur a fee for registering the sale and transfer of the property.

Interested in buying in Florida? Check out our article on how to buy a house in Florida to make sure you are well-informed on the process, local market trends, legal requirements, and financing options.

hash-markHow Much Are Closing Costs in Florida?

The actual closing costs in Florida depend on many factors, such as the property's price, associated fees, and whether a real estate agent was involved. Generally, the seller will pay between 5% and 10% of the home's sale price, mainly due to real estate commissions, which can be as high as 6%. On the other hand, the buyer will usually pay between 1% and 3% of their total price for closing costs alone.

This means that sellers typically pay more in closing costs than buyers, but this can vary based on the specifics of the deal. Both parties can negotiate who pays for certain costs to best suit their financial situations and help finalize the sale.

hash-markFlorida Closing Costs Bottom Line

In summary, closing costs in Florida can add a significant amount to the total price of a home for both buyers and sellers. It's important to anticipate these costs before finalizing a deal. However, many of these costs are negotiable. Buyers and sellers can discuss who pays for what to make the deal work for both parties.

For example, sellers might cover some or all of the buyer's closing costs to secure a sale. This can help buyers manage their budgets and ensure the sale goes through smoothly. Understanding Florida's closing costs is straightforward when you break them down, so make sure to discuss any questions with your realtor to avoid surprises. Good luck with your home sale or purchase!