Once you’ve found your dream house in Florida and settled on the purchase price, you might think you know the final cost you’re responsible for. However, there’s another set of fees and charges you must be prepared for, and those are closing costs.
According to ClosingCorp, which provides real estate closing cost data for the mortgage industry, closing costs in Florida, including transfer taxes, average 2.3% of the sales price. That’s a little higher than the national average of 1.81% of the purchase price, according to the study based on 2021 data.
Read on to learn more about closing costs, including how much closing costs are in Florida and which costs are traditionally paid by the buyer and seller.
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What are closing costs?
Closing costs are a set of fees related to buying a house that are due on the official date of purchase (also known as closing). Some of these costs, such as property taxes and insurance, are related to homeownership in general. Others, such as origination fees and interest, are directly related to obtaining a mortgage.
Richie Helali, a licensed senior mortgage advisor at HomeLight Home Loans, says that closing costs are most often paid through wire transfer or certified check, along with the down payment for your home loan (which is not part of your closing costs but is typically due at the same time).
If the total amount of your closing costs plus your down payment is financially overwhelming, sometimes lenders will allow you to add the closing costs into the total amount of your loan, thus reducing the amount of cash needed at closing.
Who pays for closing costs in Florida?
Closing costs run the gamut, from origination fees for your mortgage to the real estate commission agents charge. As a buyer, you don’t have to worry about the real estate commission, which the seller typically pays and their agent and your agent split. But you will be responsible for a variety of charges, some that vary based on your loan amount and others that may be a flat fee.
Depending on local customs and how well or slowly homes are selling, the seller may agree to pay for some of your closing costs.
“We still have a busy market here in Orlando, but sellers may be willing to give a little if needed to get their home sold,” says real estate agent Kathryn Stelljes, who has worked with over 65% more single-family homes than the average agent in Orlando.
“If you see a listing that’s been on the market for more than two weeks, you’ll have a better chance of negotiating some sort of closing costs contributions that maybe you can use to buy down the rate,” she notes. “I’m finding that sellers definitely understand that we’re in a little bit of a different market.”
The Orlando market has the most competition for homes in the $400,000 to $450,000 range and less at the higher end, so you may find buyers more willing to contribute to closing costs if you’re buying an $800,000 house rather than a $400,000 house, Stelljes adds.
Florida has a few traditions about who pays what closing costs. In Florida, the buyer and seller split the taxes related to filing the mortgage and deed, commonly called a transfer tax or document stamp. In the Sunshine State, the seller pays for the deed’s document stamp tax and the buyer covers the mortgage stamp and intangible tax. Also, sellers traditionally pay for the title insurance policy.
How much are closing costs in Florida?
Buyer closing costs in Florida
Some of these charges might be optional. For example, you aren’t required to have an attorney at your closing, although you might want to hire an attorney for a complicated purchase.
Homebuyers typically order the home inspection soon after going under contract, and they pay the inspector upfront for the service, so it doesn’t appear on the closing document.
| Closing cost item | Typical cost to buyer |
| Appraisal fee | $500-$550 |
| HOA charges (prorated or approval fees) Assumes two months at the statewide average of $240 per month. HOA fees vary widely depending on the community where the home is located. | $480 |
| Loan origination fees (0.5% to 1% of sale) | – |
| Credit report | $75 |
| Home inspection The buyer usually orders the home inspection and pays for it during the due diligence period, so it doesn’t appear on a closing statement | $450 |
| Wood Destroying Organism inspection Typically only required for a VA loan but highly recommended in Florida. | $100-$125 |
| Survey fees (Lender may require) | $300-$350 |
| Mortgage stamp (0.35% of sale) | – |
| Prepaid points (Varies) Paying points is a way to decrease your interest rate. It’s optional, with one point equal to 1% of your loan amount. | – |
| Settlement fee | $550-$750 |
| Intangible tax (0.2% of sale) | – |
| Typical buyer closing cost total | $8,970* |
*Example estimate based on 2.3% of a $389,990 median-priced Florida home.
Stelljes believes that most buyers research these closing costs on stories like this one so they’ll be prepared, but adds, “I think at the end of the day, the overall cost can still cause a little sticker shock.”
Seller closing costs in Florida
Seller closing costs in Florida are higher than what the buyer pays because the seller is responsible for the real estate commission, which is typically about 5.8% of the sales price, based on national averages.
| Closing cost item | Typical cost to seller |
| Real estate commission (5.8% of sale) | – |
| Transfer taxes or documentary stamp (0.7% of sale) | – |
| Title insurance (0.5% of sale) | – |
| Settlement fee | $500-800 |
| Recording fees | $10 per page |
| Property taxes (May need to pay back buyer) The average effective property tax rate in Florida is 0.8%. As a seller, you must pay the taxes for the period between when you last paid property taxes and the day you close. | Prorated |
| Wire transfer fees | $15-$30 |
| Concessions (negotiable) Concessions might include paying for specific closing cost items or contributing a negotiated amount toward the buyer’s closing costs | varies |
| Outstanding amounts (utility bills, HOA fees) | Varies; HOA fees may be prorated |
| HOA transfer fee | $100 |
| Typical seller closing cost total | $27,299 to $35,099* |
*Example estimate based on 7% to 9% of a $389,990 median-priced Florida home. This example above can vary depending on concessions granted and how much the seller owes for property taxes and HOA fees.
How can I estimate my closing costs in Florida?
A buyer’s closing costs in Florida average 2.3% of the sales price, so you can figure the costs will be between 2% and 3% of the sales price.
“For kind of a ballpark [cost estimate] when somebody’s going to buy a home, if they estimate for 3% of the sales price (price x 0.3), that really will cover their closing costs and prepaid items, and those prepaid items being taxes and insurance, your prepaid interest. It’s not a perfect system, but that has worked for me over the years,” Stelljes says.
Based on the average range, you can get an idea of what your closing costs might be from the following chart.
| Home price | 2% closing costs | 3% closing costs |
| $300,000 | $6,000 | $9,000 |
| $350,000 | $7,000 | $10,500 |
| $400,000 | $8,000 | $12,000 |
| $450,000 | $9,000 | $13,500 |
| $500,000 | $10,000 | $15,000 |
| $550,000 | $11,000 | $16,500 |
| $600,000 | $12,000 | $18,000 |
Another tool to estimate your closing costs in Florida is an online closing cost calculator. However, the best way to determine what your closing costs will be in Florida is to partner with a top real estate agent or mortgage advisor. Once you apply for a mortgage, you should receive a loan estimate statement from the lender that provides estimated closing costs and the amount of cash you’ll need at closing.
Your lender is required to provide a closing document three business days before your closing is scheduled to take place. The document itemizes the costs for the loan itself, such as origination and underwriting fees, the costs for services, such as an appraisal, and prepaid fees, such as taxes and homeowner’s fees.
Regarding appraisal fees, Stelljes says, “That’s definitely something that’s gone up in costs over the last few years. And [the cost] depends on the size of the home, or if it’s a large, unusual lot — things like that might mean the appraiser has to do more research, which can cost more.”
How can I lower my closing costs in Florida?
According to Business Insider, Florida has some of the highest closing costs in the nation at an average of $8,554 with taxes. But if you team up with a savvy real estate agent who is well informed about local market conditions and will look out for your best interests, the seller might pick up the tab for some closing costs.
Although closing costs can add up to a staggering amount of money, there are a few ways to reduce these expenses:
- Shop around for title insurance since rates offered by Florida title insurance companies differ if your seller isn’t covering the cost. Discounts may be available for first-time home buyers, houses that were re-sold during the past five years, or owner’s and lender’s policies purchased together.
- Schedule closing at the end of the month to reduce prepaid interest.
- Compare interest rates and fees from several mortgage companies. Avoid paying points in exchange for a lower mortgage interest rate or negotiate a rate buydown from the seller.
- Ask for a repair credit for home inspection issues that you would prefer to rectify yourself.
How can I find a top real estate agent in Florida?
HomeLight can connect you with some of the most experienced buyer’s agents in Florida. Simply answer a few questions, and our Agent Match platform will analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
Additional expert insights about closing costs in Florida
What should homebuyers in Florida be prepared for about closing?
Finding a homeowner’s insurance policy in Florida can take a lot of time and research.
“The premiums are very high right now because there are not very many options,” Stelljes says. “A lot of insurance companies have left our state due to hurricanes in recent years. So because there are less options, the prices are higher. That can be something that could be a shock for somebody — not necessarily on their closing costs but in their total monthly payment.”
In addition, she adds: “Insurance carriers don’t always cover every county. You might call up today to get a policy quote, and they say, ‘We don’t have any availability for this insurance company in this area.’ So again, the more limited the options are, the higher the premiums are going to be.”
When are closing costs paid in Florida?
Closing costs are paid at closing, or settlement, which takes place at the office of a title company. The state doesn’t require an attorney, but a notary must be present. Typically, the person handling the closing is a notary, but if you request a remote closing where you’re not in the same place as the settlement agent, you might have to pay for a notary to join you, Stelljes says.
What’s this I’ve heard about property tax surprises in Florida?
“So it really just depends on the situation,” Stelljes says, “but that’s one thing to very much keep in mind as a buyer. If you’re buying a home that hasn’t been sold in recent years, it may not be assessed at today’s values. And so when you close on it — come the next year — your tax bill might increase significantly.”
Can I add closing costs to my home financing?
You may be able to add your closing costs to the amount of your home loan, but that may result in a higher interest rate. If you’re concerned about having enough cash to close, a down payment assistance program in Florida might help. Getting help with the down payment can free up some of your savings to pay for the closing costs.
Will I need to pay private mortgage insurance (PMI) in Florida?
Your lender will require you to buy private mortgage insurance (PMI) if your down payment is less than 20% of the sales price. If you’re getting a government-backed FHA mortgage, you may have to pay up to 1.75% of the loan amount at closing for mortgage insurance, and your monthly mortgage bill will also include an amount for mortgage insurance.
Will a builder pay closing costs on a new construction home in Florida?
That may depend on how hot the market is. In Florida, sellers typically pay for the buyer’s title insurance policy as a courtesy, and builders don’t follow that tradition, Stelljes notes, so a buyer will face that expense. However, new-home builders may offer other financial incentives, she adds.
Conclusion: Be prepared for Florida closing costs
Florida’s closing costs are slightly above the national average for buyers, and you may end up paying about 3% of the sales price in closing fees. Partner with a top buyer’s agent in Florida to get guidance on what costs to expect and what you may be able to negotiate. Use HomeLight’s free Agent Match platform to find a top agent who understands the market where you plan to buy.
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