Phil Aitken
Phil Aitken

Understanding Closing Costs in Florida: What You Need to Know

Your Home Sold Guaranteed Realty - Phil Aitken Home Team

Closing costs are an essential part of the home buying and selling process. They often come as a surprise to many buyers and sellers. In Florida, these costs can vary based on a variety of factors. Understanding what to expect and how to manage these costs can make the entire process smoother and less stressful.

The Phil Aitken Home Team has over 14 years of experience when it comes to all things about closing costs. Our team helps clients navigate these costs and find ways to have an easy closing on their home.

We will break down what closing costs and what they cover in this article. We will share how you can go about these costs when it comes time to close on your home.

What Are Closing Costs?

Closing costs are the fees and expenses that come with finalizing a real estate transaction. These costs are between the buyer and the seller. The closing costs include a range of fees. These expenses are loan origination fees, appraisal fees, title insurance, and more. In Florida, these costs are influenced by certain criteria. The criteria consists of the location of the property, the type of property, and the terms of the sale.

Average Closing Costs in Florida

In Florida, the average closing costs for buyers generally range from 2% to 5% of the price of the home. For sellers, closing costs can range from 6% to 10% of the sale price, due to real estate agent commissions. Here’s a breakdown of typical costs:

For Buyers

  1. Loan Origination Fee: This fee is 0.5% to 1% of the loan amount. It covers the lender’s administrative costs in processing the loan.
  2. Appraisal Fee: An appraisal fee is usually between $300 and $500. It goes to a professional appraiser who assesses the value of the property.
  3. Title Insurance: Title insurance protects the buyer and lender against any legal disputes. The disputes tend to be over property ownership. This can cost around $1,000 to $2,000.
  4. Home Inspection Fee: A home inspection costs between $300 and $500. This ensures the property is in good condition.
  5. Recording Fees: They vary by county. They cover the cost of registering the sale with the local government and can range from $50 to $100.
  6. Attorney Fees: Legal fees are necessary for reviewing contracts and documents. These can vary but often range from $500 to $1,000.

For Sellers

  1. Real Estate Agent Commission: This is the largest cost for sellers. It is 5% to 6% of the sale price, split between the buyer’s and seller’s agents.
  2. Title Insurance: In Florida, sellers often pay for the owner’s title insurance policy. This can cost around $1,000 to $2,000.
  3. Transfer Taxes: They are also known as documentary stamp taxes. These are calculated based on the sale price of the property and usually amount to $0.70 per $100 of the sale price.
  4. Recording Fees: They cover the cost of registering the sale with the local government.
  5. Attorney Fees: These fees are not always required. Some sellers choose to hire an attorney, with fees ranging from $500 to $1,000.

Factors Influencing Closing Costs

Several factors can influence the final amount of closing costs in Florida. Understanding these can help you budget more effectively and potentially reduce your costs.


The location of the property can impact closing costs. Services like appraisals and inspections will vary on price due to the area of the property. It may cost more compared to more rural areas. For instance, properties in metropolitan areas like Miami or Orlando may have higher fees for services.

Type of Property

The type of property that is being bought or sold also affects closing costs. For example, purchasing a condominium may involve extra fees. These consist of homeowners association (HOA) fees, which can be quite large.

Loan Type

The type of loan you choose can influence your closing costs. Government-backed loans like FHA, VA, and USDA loans have specific fee structures. They may include more costs such as mortgage insurance premiums.

Negotiation and Agreements

Some closing costs are negotiable. They are influenced by the agreements made between the buyer and the seller. For example, in a buyer’s market, sellers may agree to cover more of the closing costs to make the deal more attractive.

Reducing Closing Costs

While closing costs are a necessary part of buying or selling a home, there are ways to reduce them.

Shop Around for Services

Not all fees are set in stone. Services like inspections, title insurance, and even legal fees can vary between providers. Taking the time to shop around and compare prices can result in more savings for you.

Negotiate with the Seller

In some cases, it’s possible to negotiate with the seller to cover part or all the closing costs. This is more common in a buyer’s market, where sellers are more motivated to close the deal.

Look for Lender Credits

Some lenders offer credits to help cover closing costs. These credits are offered in exchange for a higher interest rate on the loan. This can be a good option if you’re short on cash. Expect to stay in the home long enough for the higher interest rate to balance out the initial savings.

Importance of Understanding Closing Costs

Understanding closing costs is crucial for both buyers and sellers. For buyers, being aware of these costs can help prevent last-minute surprises. It ensures that you have enough funds available to complete the sale. For sellers, understanding your expenses can help you set a more accurate sale price. It will also help you negotiate better.

For Buyers

  • Budgeting: Knowing the expected closing costs allows you to budget better. You can also avoid unexpected financial stress.
  • Negotiation: Knowing about typical closing costs can strengthen your position. This will help when negotiating with the seller.
  • Loan Approval: Lenders consider your ability to cover closing costs when approving your loan. Preparing ahead of time can increase your chances of a smooth approval process.

For Sellers

  • Accurate Pricing: Understanding your closing costs helps you set a realistic asking price. This covers your expenses and meets your financial goals.
  • Smooth Transactions: Preparing for your closing costs can prevent delays. It also ensures a smoother closing process.
  • Negotiation: Knowing your costs helps you make informed decisions during negotiations. This will help save you money or make your property more attractive to buyers.

Closing costs are an integral part of any real estate transaction.

You need to start with understanding what closing costs are. You need to know how they are calculated and ways to reduce them. Both buyers and sellers can navigate the process with more confidence and efficiency. Being well-prepared for closing costs is a crucial step in your home ownership journey. This will help you achieve a successful and stress-free transaction.

To learn more about mortgages and how to get started with your buying journey, check out our mortgage loan guide.Check out our article on how to determine your budget for buying a home.

Phil Aitken, Owner/Broker
Phil Aitken is the Owner/Broker with Your Home Sold Guaranteed Realty - Phil Aitken Home Team and has over 13 years of Real Estate experience. Phil’s faith and desire for his family’s continued security fuel his business growth and leadership. The Phil Aitken Home Team continues to profoundly impact the people of Jacksonville via supporting several faith-based organizations. Phil gives back a portion of every real estate transaction to The Tim Tebow Foundation and Rethreaded. Find Phil's full story here.