How Much Is Closing Cost in Florida: Real Estate Fees When Buying a Home

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Jan 1, 2024

When we look at purchasing property in Florida, one of the final steps in the transaction process is the payment of closing costs. These fees, which cover a range of services necessary to complete a real estate sale, can be a significant part of our budget when buying a home. Understanding the ins and outs of closing costs in Florida is crucial to a smooth homebuying experience.

We need to consider several expenses that comprise closing costs in Florida, including lender’s fees, title insurance, appraisals, recording fees, and potential property taxes and attorney fees. Typically, these costs amount to a certain percentage of the home’s sale price. Although closing costs can vary widely depending on the location and type of property, we generally expect to pay a certain average percentage of our home’s value.

Closing costs in Florida are known to be on the higher side compared to some other states, but by familiarizing ourselves with the average percentages and median values of homes in the state, we can effectively budget for these expenses. By doing so, we ensure that we are prepared for this final, crucial step toward securing our new home in the Sunshine State.

Understanding Closing Costs in Florida

When purchasing or selling a property in Florida, it’s crucial to be aware that closing costs are an assortment of fees, separate from the property’s purchase price. These costs can vary significantly based on factors like the type of property, its location, and the terms of the real estate transaction.

Average Closing Costs

Florida’s closing costs are typically in the ballpark of 1.5% to 3% of the home’s purchase price, although this can fluctuate. A report by ClosingCorp mentioned that on a home priced at $375,368, the average closing costs are around $8,554, which is about 2.3% of the home’s value.

Closing Cost Components

Title Insurance: This is one of the chief costs and safeguards the buyer (and lender) from any unforeseen claims against the property.

  • Owner’s Title Insurance
  • Lender’s Title Insurance


  • Application Fees: For processing your loan request.
  • Origination Fees: Charged by the lender for creating the loan.
  • Credit Report Fee: A small fee for pulling your credit histories.


  • Documentary Stamp Tax: Imposed on the documents that transfer property ownership.
  • Transfer Tax: Charged by local entities when a property changes hands.
  • Intangible Tax: Levied on the mortgage.

Appraisal Fee: To determine the fair market value of the property.

Survey Fee: To verify property boundaries and details.

Home Inspection Fee: Critical to identify any potential issues with the property.

Recording Fees: Paid to the local recording office to make the sale a matter of public record.

Property Taxes: Prorated property tax may also be included in closing costs.

Loan Origination Fees: Charged by the lender for creating the loan.

Closing costs are a complex but unavoidable part of buying or selling a home in Florida. By understanding the various closing cost components, we can better anticipate the final expenses and avoid surprises at the closing table.

Role of Sellers and Buyers

In the Florida real estate market, both sellers and buyers have distinct responsibilities when it comes to closing costs. A thorough understanding of these obligations can significantly influence negotiations and the final purchase price.

Seller Responsibilities

In Florida, the sellers are responsible for specific closing costs. These may include but are not limited to doc stamps, transfer taxes and real estate commission fees. In counties like Miami-Dade, the seller may also be responsible for the cost of title insurance policy and might also cover the cost of recording the deed. Seller closing costs in Florida often range between 5.0-9.0% of the home’s final selling price, which includes real estate agent commissions.

  • Documentary Stamp Taxes: Applied to the deed (Miami-Dade County has a different rate)
  • Owner’s Title Insurance: Covers potential title issues for the buyer
  • Real Estate Commission: Fees for agents involved in the transaction

Buyer Responsibilities

On the other side, buyers in Florida should be prepared to handle certain costs. These include but are not limited to loan-related fees, appraisal fees, and certain inspections. In some areas like Sarasota or Broward, there might be negotiated concessions where the seller agrees to pay a portion of the buyer’s closing costs. We, as buyers, should anticipate these costs as part of our overall budget.

  • Loan-Related Fees: Origination fees, credit reports, and more
  • Appraisal and Inspections: Necessary to fulfill loan requirements and for due diligence
  • Title Search Fees: Based on the terms of the contract and which party selects the title company.

Buyers in Florida can negotiate these expenses, but this depends on factors like market conditions and the specific details of sales contracts.

Calculating Your Closing Costs

When selling or buying property in Florida, it’s crucial to understand that various factors will impact the final amount you’ll pay at closing. We’ll break down the elements that can influence these costs and provide a methodology to approximate your closing expenses accurately.

Factors Influencing Costs

The closing costs in Florida are affected by several factors. Miami-Dade County might have different rates for certain fees compared to other counties. Here’s what can affect your closing costs:

  • Real Estate Agent Commissions: These are typically the largest part of seller closing costs and can range from 5% to 6% of the final sale price.
  • Location: Fees can vary depending on the county. For example, Miami-Dade County has a different scale for certain taxes such as the documentary stamp tax on deeds.
  • Type of Property: The nature of the property, whether it’s commercial or residential, can influence the closing costs.
  • Mortgage Payoff: If you’re selling, the amount needed to pay off your mortgage will affect your net proceeds.

Estimating Final Costs

To estimate your final costs, begin by considering the median home value in your area. In Florida, closing costs for sellers typically range from 6% to 10% of the property’s final sale price. Here’s a simple way to estimate:

  1. Determine the expected sale price of your property.
  2. Calculate the agency commission: For a property selling at the median value, expect to pay about 6% in realtor commissions.
  3. Add fixed fees: Such as settlement or closing fees, which are often predetermined.
  4. Include variable costs: Taxes and other fees that might be specific to your locality.

Remember, these are estimated figures, and having a precise calculation tailored to your situation is essential for a clear financial picture.

Regional Variations Within Florida

In examining closing costs across Florida, we observe a notable variation that hinges on localized factors such as county specific fees and local taxes. These expenses can fluctuate significantly, affecting the overall settlement costs. It’s prudent for us to explore these variations to better understand the financial implications of purchasing property in different regions of the state.

County Specific Fees

Certain fees are unique to the county level, influencing the closing expenses one can anticipate. For instance, we can look at Miami-Dade County, where buyers encounter a distinct fee structure compared to other counties in Florida. Miami-Dade has a surtax on documentary stamp taxes for transactions that exceed $100. Meanwhile, in Sarasota, fees like the Clerk’s Comptroller’s fee might vary, directly impacting your settlement statement.

Conversely, counties like Broward and Collier may have varying costs for recording fees or title insurance surcharges. These fees are predetermined at the county level and can alter buying costs. It’s essential for buyers to consider these county-specific nuances when budgeting for their home purchase.

Local Taxes and Charges

One of the more predominant expenses in the closing process comes from local taxes, including but not limited to Florida documentary stamp tax. This tax applies to all transfer of property, and rates can vary by location. For example, in Tampa, the Florida documentary stamp tax is a significant portion of the closing costs, levied on deeds, mortgages, and other real estate transactions.

Property taxes also introduce regional variability. Local governments in Florida set their millage rates, which means the same property value could incur different tax liabilities across counties or cities. Additionally, buyers should be alert to other local charges, such as municipal lien searches, which can differ not only in cost but in the process required across various jurisdictions.

By recognizing these regional distinctions, we equip ourselves with the knowledge to navigate the closing process and effectively calculate potential costs associated with purchasing real estate in the diverse counties of Florida.

How to Reduce or Manage Your Closing Costs

When purchasing a home in Florida, staying informed and proactive can significantly impact the closing costs you’ll incur. Below, we will provide specific strategies to help you reduce or manage these costs effectively.

Negotiating Tips

We often overlook the power of negotiation when it comes to closing costs. In our experience, it pays to discuss with the seller the possibility of them covering a portion of the costs. Florida’s real estate market is unique, but a common practice is for buyers to strategically negotiate closing costs with the seller. For example, you might use a Florida seller closing costs calculator to estimate your expenses and identify areas where the seller might be willing to contribute. It’s also wise to negotiate the commission rate with your listing agent or find a company that pre-negotiates realtor commissions

Shopping for Services

Shopping around for third-party services can lead to substantial savings. We need to scrutinize items like the HOA transfer feemunicipal lien search, and pest inspection services. It’s essential to compare quotes and check reviews before deciding on a provider. Remember, there’s room to save on the lender’s fees as well. Whether it concerns a VA loan or another type of financing, do not settle for the first settlement fee or closing fee that is offered. Explore various lenders to find the most favorable terms, as this could also affect your required down payment and the total amount you spend over the lifetime of your loan.

Always keep in mind that Florida may have specific fees that are unique to the region, so double-check those to avoid surprises. Check out our list of the best places to live in Florida and compare some of the top cities.

Frequently Asked Questions

We understand that navigating closing costs can be complex. Here, we clarify some of the common questions regarding closing costs in Florida to give you a clearer understanding of what to expect.

What items are typically included in Florida’s closing costs for buyers?

Items commonly factored into closing costs in Florida include title insurance, appraisal fees, settlement fees, and recording fees, along with specific state requirements like flood certification.

How can I estimate closing costs when buying in Florida?

Closing costs are often estimated as a percentage of the home’s sale price. This percentage varies but can be estimated at around 2 to 3 percent of the sale price of the home, though this can fluctuate based on individual circumstances.

Who is generally responsible for paying the closing costs in a Florida real estate transaction?

In Florida, both sellers and buyers have different fees to pay at closing. Sellers might pay the commission for real estate agents and title transfer fees, while buyers often handle the title insurance and loan-related fees.

For a home priced at $300,000, what would the closing costs be in Florida?

For a home priced at $300,000, the closing costs could typically range from approximately $7,500 to $10,000, considering the average percentage range of closing costs in the state.

In Florida, how do closing costs for new construction homes differ?

Closing costs for new construction homes in Florida may include additional fees such as builder’s fees, up-front payments for homeowners’ association dues, and possibly construction loan fees, besides the standard closing cost items.

Is there a difference in closing costs when purchasing with cash versus financing in Florida?

Yes, purchasing with cash eliminates the mortgage-related closing costs, such as loan origination fees or mortgage insurance, which can lower the overall closing costs associated with the transaction.

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