February 10, 2026
Closing costs are one of the most common surprises for Florida homebuyers and sellers. You've agreed on a price, you've locked your rate, and then a whole list of fees shows up that you weren't fully prepared for. The good news is that none of this has to be a surprise if you know what's coming.
In Florida, closing costs typically run 2% to 5% of the home's purchase price for buyers (on top of your down payment) and roughly 7% to 10% for sellers once commissions are included. On a $400,000 home, that's $8,000 to $20,000 for the buyer and $28,000 to $40,000 for the seller.
Florida also has state-specific fees that you won't find in most other states, including documentary stamp taxes and an intangible tax on your mortgage. Understanding how these work and who pays for what puts you in a much stronger position at the closing table.
Florida Closing Costs for Buyers
As a buyer, your closing costs fall into a few main categories: lender fees, government taxes, title and settlement charges, and prepaid items. Here's what to expect.
Lender and Loan Fees
These are the costs directly tied to your mortgage:
- Loan origination fee: 0.5% to 1% of the loan amount. This covers the lender's cost to process your loan. On a $350,000 mortgage, that's $1,750 to $3,500.
- Appraisal fee: $300 to $600. The lender requires an independent appraisal to confirm the home's value supports the loan amount.
- Credit report fee: $50 to $100. Covers pulling your credit from all three bureaus.
- Discount points (optional): 1% of the loan amount per point. Paying points upfront lowers your interest rate. This only makes sense if you plan to keep the loan long enough for the monthly savings to outweigh the upfront cost.
- Prepaid interest: Interest that accrues between your closing date and the end of that month. Closing at the end of the month minimizes this cost.
Florida Government Taxes (Buyer's Share)
This is where Florida gets specific. Two state taxes apply directly to the buyer's mortgage:
Documentary stamp tax on the promissory note: $0.35 per $100 of the loan amount. This is a state tax on the mortgage note itself. On a $350,000 loan, that's $1,225.
Intangible tax on the mortgage: $0.20 per $100 (or 0.2%) of the loan amount. This is a one-time tax on the mortgage as a financial instrument. On a $350,000 loan, that's $700.
These two taxes alone add nearly $2,000 to your closing costs on a $350,000 mortgage. They're non-negotiable, set by the state, and paid at closing.
Title and Settlement Charges
- Title search: $150 to $300. Verifies there are no liens, disputes, or ownership issues on the property.
- Lender's title insurance: Required by your lender to protect their interest. Typically a few hundred dollars.
- Owner's title insurance: Protects you as the buyer against future title claims. In most Florida counties, the seller pays for this (more on that below). In Miami-Dade, Broward, Sarasota, and Collier counties, the buyer typically pays.
- Settlement/closing fee: $500 to $800. Paid to the title company or attorney who handles the closing.
- Recording fees: $50 to $200. County fees to record the deed and mortgage in public records.
Prepaid Items and Escrow
Your lender will require you to prepay certain costs at closing to set up your escrow account:
- Homeowners insurance: Your first full year's premium is due at closing. In Florida, budget $4,000 to $7,000+ depending on location and property type.
- Flood insurance (if required): First year's premium due at closing if you're in a flood zone. This could add $500 to $6,000+ depending on risk level.
- Property tax escrow: Typically 2 to 3 months of property taxes held in reserve. On a $400,000 home with a 1% tax rate, that's roughly $650 to $1,000.
- Insurance escrow: 2 to 3 months of insurance premiums held in reserve.
Sample Buyer Closing Costs
Here's a realistic breakdown for a $400,000 home purchase with 10% down ($360,000 loan):
- Loan origination (0.75%): $2,700
- Appraisal: $450
- Credit report: $75
- Doc stamps on note ($0.35/$100): $1,260
- Intangible tax (0.2%): $720
- Title search and settlement: $800
- Lender's title insurance: $400
- Recording fees: $150
- Prepaid interest (15 days): $900
- Homeowners insurance (year 1): $5,000
- Property tax escrow (3 months): $1,000
- Insurance escrow (2 months): $830
Estimated buyer closing costs: $14,285
That's roughly 3.6% of the purchase price, plus the prepaid insurance premium. Your actual costs will vary, but this gives you a realistic planning number.
Florida Closing Costs for Sellers
Sellers have their own set of closing costs, and the biggest one by far is the real estate commission.
Real Estate Commissions
Agent commissions in Florida have traditionally run 5% to 6% of the sale price, split between the listing agent and the buyer's agent. On a $400,000 sale, that's $20,000 to $24,000.
Following changes from the 2024 NAR settlement, commission structures have become more flexible. Rates are negotiable, and buyers now typically negotiate their agent's compensation separately. However, most sellers still offer some form of buyer agent compensation as part of the deal. Your listing agent can walk you through the current landscape.
Documentary Stamp Tax on the Deed
This is the big Florida-specific cost for sellers. The documentary stamp tax on the deed is $0.70 per $100 of the sale price in all Florida counties except Miami-Dade.
Miami-Dade County rates:
- Single-family homes: $0.60 per $100
- All other property types (condos, duplexes, commercial): $1.05 per $100 ($0.60 + $0.45 surtax)
On a $400,000 sale outside Miami-Dade, the doc stamps on the deed cost the seller $2,800.
Other Seller Costs
- Owner's title insurance: In most Florida counties, the seller pays for the buyer's owner's title policy. This costs roughly 0.5% to 1% of the purchase price, or $2,000 to $4,000 on a $400,000 sale. (Exception: in Miami-Dade, Broward, Sarasota, and Collier counties, the buyer typically pays.)
- Municipal lien search: $150 to $400. Confirms no outstanding municipal liens on the property.
- Property taxes: Prorated from the beginning of the year through closing day.
- HOA fees: Prorated through closing day, plus any transfer or estoppel fees the association charges.
- Attorney fees: $500 to $1,000 if you use one (not required in Florida but recommended for complex transactions).
- Repairs from inspection: Varies. Buyers often negotiate repair credits based on the home inspection findings.
Sample Seller Closing Costs
On a $400,000 sale (outside Miami-Dade):
- Agent commissions (5.5%): $22,000
- Doc stamps on deed ($0.70/$100): $2,800
- Owner's title insurance: $2,200
- Municipal lien search: $250
- Prorated property taxes: $2,000
- Attorney fees: $750
- Miscellaneous recording/fees: $200
Estimated seller closing costs: $30,200
That's about 7.5% of the sale price. The commission is the biggest lever, and it's the most negotiable.
Who Pays for Title Insurance in Florida?
This trips people up because it depends on where in Florida you're buying. The custom varies by county:
Seller typically pays for the owner's title insurance in most Florida counties, including Hillsborough (Tampa), Duval (Jacksonville), Orange (Orlando), Palm Beach, Lee, and Pinellas.
Buyer typically pays for the owner's title insurance in Miami-Dade, Broward (Fort Lauderdale), Sarasota, and Collier (Naples) counties.
Keep in mind that "custom" is not the same as "required." Who pays for title insurance is always negotiable in the purchase contract. In a buyer's market, you may be able to shift this cost to the other side regardless of local convention.
How to Reduce Your Closing Costs
Closing costs are part of the deal, but that doesn't mean you can't minimize them.
For Buyers
Shop your loan. Get loan estimates from at least three lenders and compare the fees line by line. Origination fees, processing fees, and underwriting fees can vary significantly. If one lender offers better fees, ask another to match.
Close at the end of the month. Prepaid interest is calculated from your closing date through the end of that month. Closing on the 28th means you pay 2 to 3 days of prepaid interest instead of 25 to 30 days.
Ask for seller concessions. In your purchase offer, you can request that the seller contribute toward your closing costs. This is common and often accepted, especially in a balanced or buyer-friendly market. FHA allows up to 6% in seller concessions, conventional allows 3% to 6% depending on your down payment, and VA allows up to 4%.
Look into lender credits. Some lenders offer credits toward closing costs in exchange for a slightly higher interest rate. If you'd rather minimize your upfront cash outlay, this can be a smart trade-off.
Explore assistance programs. The Florida Housing Finance Corporation (FHFC) and various county programs offer closing cost assistance for qualifying buyers, including down payment assistance that can be applied to closing costs.
For Sellers
Negotiate your commission. Commissions are always negotiable. If you're selling a higher-priced home, there's often room to negotiate a reduced rate.
Get ahead of repairs. Small issues found during inspection often turn into inflated repair credits. Addressing known issues before listing can save you money and keep negotiations cleaner.
Shop title services. You're not locked into using a specific title company. Getting quotes from multiple providers can save several hundred dollars.
Watch Out for Builder Contracts
If you're buying new construction in Florida, read your purchase agreement very carefully. Builders frequently shift costs that would normally fall on the seller over to the buyer. This can include documentary stamp taxes on the deed, title insurance, and other fees that add thousands to your bottom line.
There's nothing illegal about it, but it's a common point of confusion. Know what you're signing and factor those additional costs into your budget from the start.
The Bottom Line
Closing costs in Florida are predictable once you know what to expect. As a buyer, plan for 3% to 5% of the purchase price on top of your down payment. As a seller, budget 7% to 10% of your sale price including commissions.
The best thing you can do is get a detailed estimate early. When you work with Edge Mortgage USA, your Loan Estimate breaks down every fee so you know exactly what you're paying and why. No surprises, no confusion, just a clear picture of what it takes to close.
Contact John Pennington at Edge Mortgage USA to get your personalized closing cost estimate and see the full picture before you commit.
