What You Need to Know About Closing Costs in Florida

Introduction

If you’re reading this, you’re likely knee-deep in the Florida real estate market—either buying or selling a property—and wondering how much more money you’ll need to shell out for all the hidden closing costs. It’s understandable to feel overwhelmed by this, especially since closing costs are often one of the least discussed yet most important aspects of any real estate transaction.

As a seller, you’re probably grappling with the idea that the price you agreed on for your home might not be the amount you walk away with after paying for repairs, agent commissions, and other fees. If you’re a buyer, you’re already mentally calculating how much your lender might tack on for loan origination, title insurance, and other fees, and wondering if you’ll have enough in savings to cover these unexpected costs.

Florida’s real estate market is unique, with its own set of local tax rules, common fees, and expectations. Whether you’re buying or selling in cities like Pensacola, Santa Rosa County, Crestview, or Navarre, understanding your closing costs will help you avoid surprises and give you peace of mind during the process.

This guide will explain the various closing costs involved in Florida real estate transactions, outline what you can expect to pay as a buyer or seller, and provide insight into ways you can minimize these expenses. Additionally, we’ll cover how the process varies from county to county and city to city, giving you valuable insight based on where you’re selling or buying.

By the end of this guide, you’ll feel better equipped to navigate the Florida real estate market and minimize those pesky closing costs—whether you’re buying a home or preparing to sell.

What Are Closing Costs in Florida?

In Florida, closing costs are the various fees and expenses involved in the transfer of property from one owner to another. Both buyers and sellers need to be prepared for these costs, which can add up quickly.

Closing Costs for Buyers in Florida

As a buyer in Florida, you can expect to pay anywhere from 2% to 5% of the home’s purchase price in closing costs. For a $300,000 home, that could range from $6,000 to $15,000. These costs are above and beyond your down payment, and are typically paid at the closing table.

Common costs for buyers include:

• Loan Origination Fees: Lenders charge fees for processing and approving your mortgage application. These fees typically range from 0.5% to 1% of the loan amount. For example, if you’re securing a $300,000 mortgage, you could expect to pay between $1,500 to $3,000 in loan origination fees.
• Appraisal Fees: An appraisal is required by your lender to ensure that the home’s value is in line with the loan amount. In Florida, appraisal fees can cost between $300 and $500, depending on the size of the home and the complexity of the appraisal.
• Title Insurance: Title insurance is an essential part of protecting your investment. It ensures that the title to the property is free of any disputes or claims. In Florida, buyers generally pay for title insurance, and this can cost anywhere from $1,000 to $2,000, depending on the sale price of the home.
• Home Inspection Fees: Most buyers opt to have a home inspection done before finalizing the purchase. A general home inspection can cost between $300 and $500, but if you’re purchasing a larger or older home, the price may be higher.
• Attorney Fees: In certain Florida counties, an attorney is required to be present at closing. Legal fees can vary depending on the complexity of the transaction but generally range from $500 to $1,500.

Closing Costs for Sellers in Florida

As a seller in Florida, your closing costs will typically be higher than those of the buyer. Seller’s closing costs usually range from 6% to 10% of the sale price, which can quickly add up to thousands of dollars.

Common closing costs for sellers include:

• Realtor Commission Fees: The largest portion of the seller’s closing costs typically goes toward paying the realtor commission. The average realtor commission in Florida is 6%, split between the listing agent and the buyer’s agent. On a $300,000 sale, that’s $18,000 in commission fees that will be deducted from the sale price.
• Title Insurance: In Florida, sellers are often required to pay for the buyer’s title insurance. This cost can range from $500 to $2,000 depending on the sale price of the property.
• Repairs and Concessions: Buyers frequently request repairs or financial concessions based on the results of the home inspection. While these are negotiable, the seller may be responsible for addressing any issues, which could involve thousands of dollars in repairs.
• Prorated Property Taxes: Florida property taxes are paid in arrears, which means if you’re selling your home mid-year, you’ll need to prorate the taxes for the time you owned the home. This means you’ll pay a portion of the property taxes at closing.
• HOA Fees: If your home is part of a homeowners association (HOA), you may be responsible for any unpaid fees or dues up until the time of closing.

How Much Does It Really Cost to Sell Your Home in Pensacola, FL?

In Pensacola, FL, like many parts of Florida, the cost of selling a home can vary depending on local market conditions. Pensacola has a relatively competitive real estate market, so while homes may sell faster, sellers still need to be aware of the closing costs involved.

Some specific factors that could impact your closing costs when selling in Pensacola include:

• Local Transfer Taxes: While Florida has no state-level transfer tax, Pensacola has its own regulations regarding documentary stamps on deeds and mortgages, which will add to your total closing costs. These taxes are typically charged to the seller and are based on the sale price of the property.
• Flood Zone Considerations: Pensacola is in a flood zone, which means that flood insurance is often required for the buyer. However, this can impact your negotiations, especially if repairs are necessary due to flood damage. The seller may be responsible for covering some of the repair costs or offering credits to the buyer.
• Market Conditions: While it’s a seller’s market in many areas of Pensacola, sellers may still need to negotiate repair costs or consider offering concessions to keep the deal on track.

If you’re selling in Pensacola, it’s essential to know the local costs. Check out our What It REALLY Costs To Sell Your Home in Pensacola, FL page for a detailed breakdown of seller-specific costs in this area.

How Much Will Listing Your House Really Cost in Crestview, FL?

Selling a home in Crestview, FL, comes with its own set of challenges and costs. In a town with a lower median home price than some other Florida markets, sellers may be dealing with different types of buyer expectations and demands. As a result, your closing costs could differ from other areas in Florida.

When selling in Crestview, sellers should be aware of the following costs:

• Lower Sale Prices: Homes in Crestview typically sell for less than the state average. While this might seem like an advantage, it can actually mean that seller commissions take up a larger percentage of the sale price, which may not feel like a win in the end.
• Repairs: Rural properties like those in Crestview often have more wear and tear than homes in urban areas. Sellers should budget for possible repairs and renovations, which could range from several hundred dollars to several thousand, depending on the issues that arise during the home inspection.

To fully understand the specific costs of selling in Crestview, explore our How Much Will Listing Your House Really Cost in Crestview, FL cluster page for a more comprehensive guide to local selling costs.

How Much Does Holding A Property Cost in Navarre, FL?

If you’re not in a rush to sell or are considering waiting for the right buyer, understanding the cost of holding a property is crucial—especially in Navarre, FL . Holding costs include everything you need to maintain the property until it’s sold, and these can add up if your home lingers on the market.

Key holding costs include:

• Mortgage Payments: If you still have a mortgage on your property, you’ll continue making monthly payments while it remains unsold. This can be one of the largest expenses, especially if your home stays on the market for months.
• Utilities: Until your home is sold, you’ll continue paying for utilities like water, electricity, and gas. Depending on the size of the property and how long it’s on the market, this could add hundreds of dollars to your monthly costs.
• Maintenance: If your home sits vacant, it may require more maintenance to keep it in top condition for showings. Lawn care, pest control, and repairs for general wear and tear are all costs you’ll need to cover.

To learn more about how to manage holding costs in Navarre, be sure to check out our How Much Does Holding A Property Cost in Navarre, FL page for more insight.

Will Selling Cost You Money in Santa Rosa County, FL?

Santa Rosa County, FL, is known for its scenic properties and close proximity to Pensacola Beach, which can make it an attractive market for sellers. However, sellers in this area should keep in mind that certain factors may increase closing costs or the overall cost of selling.

For example, sellers in Santa Rosa County may face:

• Higher Property Taxes: Property taxes in some parts of Santa Rosa County can be higher than in other regions. Sellers should budget for prorated property taxes, which will be deducted from the proceeds of the sale.
• Additional Fees: Local recording fees or transfer taxes could add to your closing costs. Always check with a local realtor or attorney to understand any specific costs unique to your area.

For more details on selling costs in Santa Rosa County, visit our Will Selling Cost You Money in Santa Rosa County, FL cluster page.

Costs of Listing With An Agent in Florida

Listing your home with a real estate agent may seem like an easy choice, especially if you’re not familiar with the selling process. However, keep in mind that agent commissions usually range from 5% to 6% of the sale price. In Florida, the typical commission fee is split between the buyer’s agent and your listing agent.

Despite the costs, there are numerous benefits to listing with an agent:

• Professional Marketing: A qualified agent will know how to market your property to the right buyers through MLS listings, social media, and their own network.
• Negotiation Skills: Real estate agents are experienced negotiators who can help secure the best price for your home.
• Paperwork and Legalities: Agents handle all of the required paperwork, ensuring that everything is legally sound and compliant with Florida laws.

If you’re on the fence about listing with an agent or considering other options, check out our Costs of Listing With An Agent in Florida page for a more detailed look at what’s involved.

Conclusion

Understanding closing costs in Florida is crucial whether you’re buying or selling. From agent fees and taxes to repair costs and insurance, being aware of these expenses can help you make informed decisions and avoid surprises. While the costs can add up quickly, exploring different selling options—like working with Samaritan Home Buyers—may allow you to reduce your overall expenses and keep more of your home’s equity.

If you’re ready to navigate the Florida real estate market, Samaritan Home Buyers can help guide you through every step of the process, ensuring that you make the most out of your investment. Contact us today to learn more about your options and how we can assist you with your real estate needs.