When you decide to list your Florida home, you need to understand how much you'll pay in closing costs. Seller closing costs are the fees homeowners incur when selling their home. Closing costs can vary, even from county to county, and include things such as title fees, recording fees, loan payoff costs, and property taxes.
Sellers in Florida should expect to pay around 1% to 3% of the total sales price in closing costs, but it's important to note that this doesn't include realtor fees — which average 6% in Florida and are paid at closing.
Working with a discount real estate agent can save you thousands in agent's commission — without sacrificing agent quality or service. This will help you walk away with more on closing day.
In the meantime, here's everything you need to know about closing costs in Florida.
What are closing costs?
Closing day is the final step in the sales transaction, and when you transfer ownership of your property to the buyer — thus “closing” the transaction. Typically this takes place under the guidance of a title company or real estate attorney and requires both buyer and seller to have fulfilled all the agreements made in the sales contract.
Closing costs are the various fees incurred by buyers and sellers during the closing of their real estate sale. Sellers closing costs are deducted from the total profit of the sale, if there is any. Typically sellers can expect to pay around 3% in closing costs in Florida, and up to 9%, including realtor commissions.
How much are closing costs in Florida?
Closing costs can vary from county to county, due to different local government taxes and recording fees; however, most sellers in Florida can expect to pay between 1% and 3% of the total sales price.
Buyers tend to have more closing costs to pay, especially if they're financing their purchase, however, sellers are often responsible for the total real estate agent commission — which includes the buyer's agent commission.
How to Calculate Your Closing Costs in Florida
On the median home value in Florida of $229,000, sellers can expect to pay anywhere from $2,290 to $6,870 in closing costs. However, you can get a more accurate idea of your closing costs by taking the sales price of your specific home and multiplying it by 3%.
What's included in Florida closing costs?
While buyers and sellers each have their own closing costs, it's important to understand all closing costs. Buyers can submit offers that ask you to cover some of their closing costs and you'll want to know how much that would be.
Title Search: $300-$600
A title search confirms the title is clear, and no outstanding liens or encumbrances exist.
Title Insurance: $1220 on the median home value of $229,000
Florida's title insurance is based on a promulgated rate which is determined by the state of Florida. For purchase prices up to $100,000 it is $5.75 per thousand and over $100,000, it is $5.00 per thousand.
Transfer Tax: Varies
Also known as the “documentary stamp” in Florida, in every county but Miami-Dade County, the transfer tax rate is 70 cents per $100 of the deed. In Miami-Dade County, the rate is 60 cents per $100.
Property Taxes: Varies
In the state of Florida, property taxes are paid in arrears; therefore, closing costs will typically include a prorated property tax credit to the buyer.
Outstanding mortgage payoff and prepayment penalty: Varies
The remainder of your property's mortgage is due at closing. Some lenders also charge a prepayment penalty for paying your loan off early. If you have a prepayment loan penalty, it will be stipulated in your loan documents.
Miscellaneous closing costs can include outstanding utility bills and HOA dues, among other things.
Other Home Selling Costs in Florida
Sellers should be aware that the real estate agent commission is paid at closing in addition to the closing costs listed above. The average real estate commission in Florida is 6% of the total sales price. This is typically split between the listing agent and the buyer's agent.
Some sellers may also decide to offer the buyer a home warranty to sweeten the deal. This can cost anywhere between $243 and $1,702.
It's also important to note that certain loan types require additional conditions to be met, which could increase sellers closing costs. For example, VA loans require a termite inspection; however, the seller must pay for this.
Sellers should also be aware that any needed repairs identified during the inspection period may be negotiated as a credit at closing by the buyer.
Who pays closing costs in Florida?
Typical Seller Closing Costs
Sellers closing costs differ slightly to buyers; however, a lot of closing costs are negotiable, which means they can vary significantly between transactions. Here are the typical seller closing costs in Florida:
- Title search
- Title insurance
- Settlement fee
- Transfer tax
- Recording fees
- Mortgage payoff
- Prepayment penalty
- Miscellaneous costs
Typical Buyer Closing Costs
Buyers closing costs tend to be more focused on the financing aspect of the deal and are considerably less if the buyer is paying in cash. Here are the typical buyer closing costs in Florida:
- Financing fees (e.g., loan origination fee)
- Credit report fees
- Title search fee
- Lender's title insurance (if financing)
- Home inspection fee (generally paid before closing)
- Appraisal fee (if financing)
- Survey fee
- Settlement fee
Should you pay the buyer's closing costs?
Often in a buyers market, sellers will sweeten the deal by offering to credit buyers at closing for some of the costs they may incur. Offering to pay part of buyers closing costs can also increase your number of potential buyers.
If a buyer presents a good offer, but issues arise during the inspection period, sometimes it can be easier to credit the buyer for the value of repairs, rather than complete them yourself. This also helps to cover the buyer's immediate closing costs.
It's important to note that certain types of loans do not allow sellers to credit buyers over a particular amount. For example, if your buyer is financing the purchase with an FHA loan, the seller cannot give concessions of greater than 6% of the total sales price.
Key Takeaways for Florida Home Sellers
When selling your home in Florida, there are a few key takeaways that homeowners should keep in mind;
- Who pays closing costs are negotiable: A lot of closing costs in Florida are negotiable, which can be a benefit to both the buyer and the seller. For example, if there is a lot of competition between buyers, a seller can ask them to cover part of the closing costs.
- Closing costs vary: Although in general sellers can expect to pay around 1% to 3% of the sales price in closing costs, this varies depending on several factors, including the local municipality. Be sure to ask your title agent for an estimation of your closing costs before you agree to a sales price.
- Real estate commission is additional: When we refer to closing costs, this typically doesn't include realtor commission, which is usually an additional 6% of the total sales price also paid at closing.
If you'd like more information about the specific costs you can expect to pay when selling your home in Florida, and how they might affect your net proceeds, seek the advice of an experienced real estate agent, or real estate attorney.
Also know, one way to save money at closing is to work with a full-service agent who's agreed to a discounted commission.
Clever partners with full-service agents throughout Florida who charge a listing fee of $3,000 or 1% for homes over $350,000. Clever Partner Agents are top-performing real estate professionals who will help you get the best price for your home and save you on closing day.