(772) 334-8600
850 Federal Hwy, #422, Stuart, FL 34994
Search Properties By County

How Much Are Closing Costs For Sellers in Florida?

Both the buyer and seller each have their own closing costs in a real estate transaction. Typically, the seller’s largest closing cost is the marketing expense to advertise the property to find a suitable buyer, which mostly relates to real estate commissions and the transferring of the deed to your home. A buyer’s closing fees will mainly cover closing costs associated when a mortgage is involved. This closing costs guide will explain who pays for what and how much the buyer and seller can expect to possibly pay to close on a real estate purchase deal.

Closing costs are a necessary, but are often forgotten part of every real estate transaction. The buyer and seller must consider these costs when calculating their total expenses or profits. Let’s break down how much closing costs are in Florida and look at who usually pays for those costs.

What Are Closing Costs?

To summarize, closing costs are the final money transfers when a home is bought or traded from one person (or party) to another. It represents the consummation of a home sale, accompanies the final signing of documents, and causes mortgage funds to be released. It’s the last step on the long road to buying or selling a house!

Who Pays Closing Costs in Florida?

Buyers and sellers are responsible for several closing costs and fees. These are classically separated by role (although the details can be arranged differently depending on the relationship between the buyer and seller). In general, a seller’s closing costs usually relate to real estate commissions and deed transfers. A buyer’s closing costs often focus on mortgage fees and payments.

How Much Are Closing Costs in Florida?

The actual closing costs will depend heavily on the property cost, associated fees, whether or not a real estate agent was involved, and more. However, a good rule of thumb is to assume that:

  • The seller will pay between 5% and 10% of the overall home’s sale price, largely due to real estate commission which can be as high as 6%
  • The buyer will pay between 2% and 4% of their total price for closing costs alone

This means that sellers usually pay more of the closing costs than buyers, but this is not a hard and fast rule. Again, it depends on the specifics of the deal.

Florida Seller’s Closing Costs

Closing costs for sellers in Florida are typically going to run between 5-10% of the purchase price. The largest Florida seller’s closing cost is the real estate commission, which is typically between 5-6%. A great way to save on the real estate commission in Florida is to hire a transaction broker. Here’s a  breakdown of some of the most common closing costs a seller in Florida may have to pay for to complete a real estate deal.

  • Outstanding amounts – if there are any outstanding amounts still owed on the property, including things like utility bills or homeowner’s association fees, these will likely be paid by the seller.
  • Real estate agent commission – this is usually between 5% and 6% of the sales price, and it’s the fee for the real estate agent connecting a seller to a buyer.
  • Settlement fees – these usually amount to between $300 and $750 and are dictated by the state. Florida doesn’t require an attorney to be present at the closing of a real estate deal, so you don’t need to necessarily pay attorney fees.
  • Title search fees – usually between $100 and $200. This covers the cost associated with checking a home’s ownership history to make sure there aren’t any title complications.
  • Prorated property taxes – in Florida, property taxes are paid in arrears, meaning a seller owes property taxes for however much of the taxable year they owned the house, and that amount will also be prorated.
  • HOA and municipal lien search – these costs are between $200 and $700 in total. The former covers fees to confirm that the home and current owner is in good standing with the homeowner’s association, while the latter covers a search for any unrecorded property issues, like expired permits or code violations.
  • Transfer tax/documentary stamp fees – this price can vary dramatically, and it’s the cost paid to the local county when the deed transfer is recorded. For all Florida counties except for Miami-Dade, this is $.70 per $100 paid for the property.
  • Title insurance – this last fee is decided by the state and is based on the overall purchase price. While who pays this fee is negotiable, the seller commonly pays it in most parts of Florida. However, since this fee is completely negotiable, the buyer sometimes pays it instead of the seller or it can be split evenly, depending on the deal.

Florida Buyer’s Closing Costs

Typically, the buyer closing costs in Florida will add up to around 2-4% of the purchase price. Florida buyer closing costs include appraisal fees, loan origination fees, inspection fees, and recording fees. Here’s an overview of the closing costs you can expect to pay when buying a home in Florida.

  • Appraisal fees – these are usually between $300 and $500. This determines the value of the home for loan purposes.
  • Optional survey fees – normally between $300 and $500, some lenders require surveys of a property before they’ll release a loan to a buyer. Costs can vary based on home location and size.
  • Loan origination fees – these are between 0.5% and 1.5% of the sales price. They cover all associated loan fees, such as prepaid interest, application fees, and loan origination fees.
  • Credit report costs – at times, lenders charge a fee to check the buyer’s credit score and history.
  • Inspection fees – often between $300 and $600, this covers the costs associated with investigating a home before the deal is closed. Some companies can do an inspection for cheap.
  • Recording fees – Florida counties incur a fee for registering the sale and transfer of the property.

Key Takeaways for Florida Home Sellers

Ultimately, closing costs in Florida can add a significant amount of the total price for a home for both the buyer and seller and should always be anticipated before closing a deal. However, keep in mind that very few elements of the closing costs are set in stone – buyers and sellers can negotiate with one another to determine who pays for what.

It’s important for homeowners to realize that selling your home will probably cost more than you initially thought — you’ll be responsible for commission fees, potential repair costs, staging, and curb appeal expenses, transfer taxes and more.

To help you navigate all your selling costs, it’s important to consult with an experienced real estate agent who can provide guidance on the best approach to sell your home so you get the best deal possible.