In Florida, both sellers and buyers share the closing costs, but the split isn’t equal. The closing costs in Florida for sellers are 5% to 7% of the home’s price. Buyers shoulder a smaller portion — 2% to 5%.
For a home valued at $402,900, sellers may pay $32,240 to $40,300, while buyers spend $8,060 to $20,150.
If you ever buy or sell a home and wonder who pays closing costs in Florida, use a closing costs calculator to estimate. It’s a free tool to help you calculate how much your expenses could be.
What Are the Sellers Closing Costs in Florida?
Estimated closing costs for sellers in Florida can amount to 8%-10% of the home’s final sale price. However, after the NAR Settlement, it reduced to 5% to 7% as the buyer agent commission of 3% ended.
Here are some of the typical closing costs for sellers:
- Home Inspection Fee ($325 to $425): A certified home inspection can help you identify potential issues with roofing, electrical, and plumbing.
- Title Search ($150 to $500): It ensures the property is free of liens or ownership conflicts. Title search helps you complete a clear transfer to the buyer.
- Transfer Tax ($0.70 per $100): In Florida, sellers mandatorily pay this state fee for the home’s sale price. It is a real estate transfer tax to complete the legal transfer of ownership.
- Real Estate Commissions (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.
» Seller Closing Costs: 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%): A lender charges for his services of processing your loan application, underwriting, and paperwork. The mortgage origination fee is calculated on the loan amount.
- Appraisal Fee ($650): Whether you’re getting a mortgage or refinancing your current mortgage, a home appraisal helps find how much amount you can borrow.
- Termite Inspection ($75-$400): It helps avoid future structural damage. A termite inspection is often needed to ensure the home is pest-free.
- Survey ($275): A property survey verifies boundary lines depending on the lot size and square footage.
- Credit Report Fee ($10-$100): Lenders can pull your credit report to assess your eligibility and financial history. It helps them approve the correct mortgage amount.
- Recording Fees ($10): It’s usually $10 for the 1st page and $8.50 for each additional page. It covers the cost of official 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 varies 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’s 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 Calculators
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’s closing costs calculator in Florida.
Bottom Line
A purchase agreement will help 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.
If you want a smooth closing process and an estimate of all costs, Houzeo can guide you. With its 100% virtual service, you can get in touch with Florida real estate professionals who will help you determine the fees.
If you want a more accurate Florida closing costs estimate, you can use Houzeo’s 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.
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, 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 an online closing cost calculator for quick estimation. If you enter your property location, sale price, mortgage payoff, and agent commissions, you will get a detailed list of itemized costs.
Houzeo’s closing costs calculator is a free tool that helps you calculate closing costs for buyers and sellers in Florida.
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