In Florida, both sellers and buyers share the closing costs, but the split isn’t equal. The closing costs in Florida for sellers are 8% to 10% of the home’s sale price. Buyers shoulder a smaller portion— 2% to 5%.
Sellers may pay $32,240 to $40,300 for an average $402,900 home, while buyers may spend $8,060 to $20,150. If you’re planning to buy or sell a home in the Sunshine State, a closing cost calculator can help you estimate your expenses.
What Are the Sellers Closing Costs in Florida?
The estimated closing costs for sellers in Florida can amount to 8%–10% of the home’s final sale price. However, after the NAR Settlement, sellers can avoid paying the buyer agent commissions and save up to 2.5% to 3%.
Here are some of the typical closing costs for sellers:
- Home Inspection Fee ($325 to $425): A home inspection can help you identify potential issues with before you list your home for sale.
- Title Search ($150 to $500): A title search verifies property ownership and identifies any liens. This ensures a smooth property transfer.
- Transfer Tax ($0.70 per $100): In Florida, sellers mandatorily pay transfer tax to complete the legal transfer of the property.
- Real Estate Commissions (2.5% to 3%): Sellers have to pay an average commission of the home’s sale price to their listing agent.
- Real Estate Attorney Fees ($100 to $500): You can get assistance in drafting title deeds, short sales, and negotiations with creditors from a real estate attorney.
- Title-Insurance (0.5% to 1.0%): Buyers and lenders get protection against any ownership dispute with title insurance. The seller has to pay for title insurance in 63 out of the 67 counties in Florida. Buyers pay for it only in Broward, Dade, Manatee, and Sarasota.
- Outstanding Mortgage Payoff: Sellers must settle the remaining mortgage amount at closing. The payoff amount can vary based on the remaining balance.
» Closing Costs for Sellers: Find out what are typical closing costs for sellers in the US.
What Are the Typical Closing Costs for Buyers in Florida?
The estimated closing costs for buyers in Florida are between 2% and 5% of the home’s purchase price. Here are the typical buyers closing costs in Florida:
- Mortgage Origination Fee (0.5%–1%): Lenders charge a mortgage origination fee for processing your loan application, underwriting, and paperwork.
- Appraisal Fee ($650): A home appraisal is necessary before you get a new mortgage or opt for a refinance. It helps you know how much loan you can get.
- Termite Inspection ($75-$400): A termite inspection is often needed to ensure the home is pest-free and helps you avoid future structural damage.
- Survey ($275): A property survey verifies boundary lines depending on the lot size and square footage.
- Credit Report Fee ($10-$100): Lenders may check your credit report to access your financial history and determine the best loan terms for you.
- Recording Fee ($10): This is usually $10 for the 1st page and $8.50 for each additional page. It covers the cost of documentation of your property ownership.
» Closing Costs for Buyers: Here are the typical closing costs for buyers in the US.
How Closing Costs Vary Based on Your Purchase Method?
The answer to who pays closing costs in Florida for a house can differ based on how you purchase the property — whether you buy for cash or opt for a new construction home.
✅ When You Buy a House for Cash
If you buy a house for cash in Florida, you can skip loans and associated fees. Closing costs for cash buyers in Florida include only attorneys, couriers, HOA fees, and other buyer closing costs. In addition, you can avoid lender-related costs like appraisal, credit report, etc.
✅ When You Buy a New Construction Home
Here, you have to pay loan origination fees, lender’s title insurance, and property taxes. However, the builder may offer certain incentives towards closing costs. If you choose to work with their in-house lender, they can bear document and deed recording expenses.
How to Reduce Closing Costs in Florida?
The average closing costs in Florida are $8,554. It is 2.3% of the average home sale price and is among the highest closing costs in the country. Here are the tips for sellers and buyers to reduce them:
How to Reduce Closing Costs for Sellers in Florida?
As a seller, you have to pay a large chunk of closing costs. To reduce closing costs and increase your profits, here are some ways you can do while selling a house in Florida:
1. Opt for a Discount Broker or a Low Commission Realtor
Generally, discount real estate brokers in Florida charge from 2% to 2.5% and low-commission Realtors charge only 1% to 1.5%. Whereas, traditional listing agents charge 3% of the sales price as a commission.
2. Choose a For Sale By Owner (FSBO) Platform
You can save up to 3% on Realtor commissions with a For Sale By Owner company in Florida. Houzeo offers Flat Fee MLS listing services in Florida to FSBO sellers. You can list your property on the MLS for a flat fee of $399 + $350 at closing.
3. Research and Compare
You can save on seller closing costs such as attorney fees, home inspection fees, and escrow fees, if you research and compare more affordable services.
4. Request the Buyer to Cover Closing Costs
There are disadvantages of sellers paying closing costs like lower profits and delayed sales. You can avoid it if you ask the buyer to chip in. Buyers may agree to cover the seller’s closing costs if fewer houses are on the market.
How to Reduce Closing Costs for Buyers in Florida?
Here are some ways to reduce closing costs for buyers:
1. Compare Your Loan Estimate
When you complete a mortgage application, you get a loan estimate from your lender in 3 days. This estimate includes costs like loan amount, interest rate, and services you can receive. You can look for alternate service providers who charge lower fees.
2. Shop for Service Providers
If a seller or their agent chooses the title and escrow provider, you can negotiate the purchase agreement. You can shop for other low-priced services.
3. Ask the Seller to Cover Closing Costs
If you understand who pays which costs on closing, you can request the seller to cover some of the costs. If you get seller concessions, it may include fees for appraisal, title search, etc. The maximum concessions a seller can provide is between 3% and 6% of the home’s sale price.
4. Get Assistance from Brokers
You can obtain buyer incentives like grants or rebates from your real estate agents. Such special programs include forgivable loans to cover the costs. You can learn more about the assistance programs and eligibility criteria at your state housing finance agencies.
Florida Closing Costs Calculator
If you’re a seller, Florida’s seller closing costs calculator can help you. You have to enter your property location, sale price, mortgage payoff, and agent commissions to get the costs listed!
If you’re a buyer, you can add the property location, purchase price, and the down payment in the buyer closing costs calculator in Florida.
Bottom Line
Closing a real estate deal in Florida can involve a range of costs. A purchase agreement helps you decide who pays for closing costs in Florida. You can budget your expenses if you understand the average closing costs in FL for sellers and buyers.
You can get in touch with Florida real estate professionals who will help you determine the fees. Moreover, to get an accurate Florida closing costs estimate, you can use an online closing cost calculator. It will give you a cost breakdown based on your property and type of loan.
Frequently Asked Questions
Who typically pays closing costs in Florida real estate market?
Both home sellers and buyers pay their share of the closing costs in the Florida real estate market. Sellers typically pay 8% to 10% of the home's sale price and buyers pay 2% to 5%.
How much are closing costs in Florida?
The typical closing costs in Florida, excluding real estate agent commission are up to 2.3 percent of a home’s sale price. It adds up to $8,554 on average.
If you hire an agent, you have to bear an additional cost of commission at 3%.
What are the closing costs for seller in Florida?
Seller closing costs in Florida are between 5% and 7% of the home's price. It includes title insurance, home inspection fees, listing agent commission etc.
In Florida, who pays closing costs for cash buyers?
If you buy a house for cash, you will bear most of the costs like attorney fees, HOA fees, etc. However, you can avoid costs like loan origination fees, appraisal fees, and credit report fees as it's a cash deal.
How to calculate closing costs in Florida?
You can calculate your closing costs with an online closing cost calculator. You've to enter your property location, sale price, mortgage payoff, and agent commissions, to get a detailed list of closing costs in Florida.
