Who pays what in Florida
Closing costs in Florida are split between the buyer and seller. Understanding who pays for what helps you budget and negotiate.
Buyer closing costs (2-5% of purchase price)
- Loan origination fees — 0.5% to 1% of the loan amount, charged by the lender for processing your mortgage
- Appraisal fee — $400 to $700, paid to the appraiser who determines the home's value for the lender
- Home inspection fee — $300 to $600, paid to the inspector (often paid separately before closing)
- Title insurance and escrow fees — $1,500 to $3,000, protects the lender and you against title defects
- Recording fees — $100 to $300, paid to the county to record the deed and mortgage
- Prepaid property taxes — varies, you reimburse the seller for taxes they already paid, usually 3-6 months worth
- Prepaid homeowners insurance — typically one year's premium paid at closing, $1,000 to $3,000
- Discount points — optional, 1% of the loan amount per point, buys down your interest rate
- Survey fee — $300 to $800, confirms property boundaries (sometimes paid by seller)
Seller closing costs (6-10% of sale price)
- Real estate commission — 5-6% of the sale price, split between listing and buyer's agent (this is the biggest cost)
- Title insurance — the seller typically pays for the owner's title insurance policy
- Doc stamps on deed — approximately $7 per $1,000 of the sale price (Florida state tax)
- Documentary stamp tax on note — if assuming a mortgage, $3.50 per $1,000
- Recording fees — for the satisfaction of mortgage and deed release
- Prorated property taxes and HOA fees — reimbursing the buyer for prepaid items
- Attorney fees — varies, some sellers hire an attorney to review closing documents
How to reduce your closing costs as a buyer
- Negotiate seller concessions — ask the seller to pay a portion of your closing costs. In a buyer-friendly market, 2-3% seller concessions are common. On a $350,000 home, that is $7,000 to $10,500 in closing cost help
- Compare lender fees — get Loan Estimates from multiple lenders and compare origination fees, processing fees, and third-party fees. They can vary by thousands
- Ask about lender credits — some lenders offer credits in exchange for a slightly higher interest rate, reducing your upfront costs
- Use down payment assistance programs — Florida programs like Hometown Heroes ($35,000) and FL Assist ($10,000) can cover closing costs in addition to down payment
- Look for no-closing-cost mortgages — these roll your closing costs into the loan or exchange them for a higher rate. Only makes sense if you plan to stay 3-5 years
Sample closing cost breakdown
Example: $350,000 home, FHA loan, 3.5% down ($12,250)
- Loan origination fee (1%): $3,378
- Appraisal fee: $500
- Credit report: $45
- Title insurance and escrow: $2,000
- Recording fees: $200
- Prepaid property taxes (3 months): $1,200
- Prepaid homeowners insurance (1 year): $1,800
- Prepaid mortgage insurance (FHA MIP): $600
- Survey: $500
- Total estimated closing costs: $10,223
Plus your down payment of $12,250 means you need roughly $22,473 total cash to close.
My advice on closing costs
Closing costs are one of the biggest surprises for first-time buyers. Do not let them catch you off guard. Get a detailed Loan Estimate from your lender early in the process so you know exactly what to expect. And remember, many of these costs are negotiable. A good buyer's agent can help you structure seller concessions to reduce your out-of-pocket costs. In my experience, the smartest move is to have a clear picture of your total cash needed to close before you start making offers.
