What Are the Closing Costs in Florida

The process of buying or selling a property in Florida involves pay certain costs at closing. Usually referred to as “closing costs,” these include loan fees, Realtor commissions, transfer taxes, title insurance, and more. It is crucial to obtain an estimate early on in the process so that you know what costs you are responsible for as per your contract, and also to have the required amount in place prior to getting to the closing table. 

Closing Costs in Florida – Is it Possible to Have a One-Size-Fits-All Approach? 

It is impossible to determine the exact closing costs without assessing each case individually. This is because many of the fees to be paid at closing depend on varying factors, including the county where the property is located, whether the property is part of a condo or homeowner’s association, the property’s purchase price, the loan amount, etc.

For instance, a property located within a community governed by a homeowners’ association (HOA) will have specific fees that will not be applicable for a property that is not part of an HOA community. Moreover, Florida law does not set a specific price for appraisal fees, so these fees vary from one appraisal company to another. Many other loan fees are lender specific and need to be obtained at the beginning of the process.

It is crucial to note that some of these fees may be charged even if the closing does not take place. For example, a buyer who orders an inspection and finds several issues with a property will not get their money back simply because the inspection results led them to cancel the purchase transaction.

Who Pays the Closing Costs in Florida?

In Florida, the buyer and seller in a real estate transaction are responsible for different closing costs. Property buyers typically spend close around 1% – 3% of the purchase price on closing fees. If the buyer is purchasing cash, closing fees tend to be on the lower side because loan fees are avoided.

For example, a buyer purchasing a property for $225,000 with a loan should expect to spend at least $5,000 in closing costs. This would include a survey fee ($350-$500), an appraisal fee ($400-$600), loan origination fees (which vary widely by lender), a credit report fee ($50-$75), a home inspection fee ($375-$450), and recording fees (approximately $250). 

On the other hand, property sellers in Florida usually pay 7% to 9% of the purchase price in closing costs, which includes Realtor commissions (typically up to 6% of a property’s purchase price). Hence, a property that sells for $225,000 could result in the seller paying at least $15,000 closing costs. Most of the seller’s closing costs are comprised of the real estate agent commissions and the transfer taxes on the deed (which is $0.70 per $100 in most Florida counties). Sellers also have to pay off their mortgage at the closing, any liens and judgments, and any past due property taxes. 

Contact Marina Title for an Estimate of Your Closing Costs in Florida

Given the many variables that influence closings cost, it is crucial that home buyers and sellers work with a title company that has a keen eye and ample experience with Florida closings. Marina Title is an established title company that offers title, escrow, and closing services throughout the State of in Florida. Owned and operated by licensed Florida attorneys, we can assess your purchase and sale transaction to determine how much you will need to pay at closing. 

Contact us today at (800) 604-1871 or email us at Info@MarinaTitle.com to get a free closing cost estimate for your Florida purchase or sale transaction.