What are closing costs in Florida and who typically pays them?

Closing costs catch a lot of buyers off guard — especially first-timers. In Florida, closing costs typically add 2% to 5% of the purchase price on top of your down payment. On a $400,000 home, that’s $8,000–$20,000 in additional cash you’ll need at the table.

Here’s a breakdown of the main costs and who pays what.

Buyer closing costs

Loan origination fees: Charged by your lender to process the mortgage. Typically 0.5%–1% of the loan amount. Shop multiple lenders — these fees vary widely.

Appraisal fee: Your lender requires an independent appraisal. Usually $400–$700 in Florida.

Home inspection: Not technically a closing cost (paid upfront), but budget $400–$600 for a general inspection plus more for specialty inspections.

Title insurance (owner’s policy): In most Florida counties, the seller pays for the buyer’s title insurance. But in Sarasota, Collier, and a few other counties, it’s customary for the buyer to pay. This is one of the larger line items — for a $400,000 home, expect $2,000–$2,500.

Title insurance (lender’s policy): The buyer typically pays this separately. Usually $500–$800.

Title search and settlement fee: Paid to the title company for conducting the closing. Typically $500–$1,500.

Escrow setup: Lenders typically collect 2–3 months of homeowner’s insurance and property taxes upfront to seed your escrow account. This can be a significant amount depending on your tax rate.

Recording fees: Fees to record the deed and mortgage with the county. Usually $100–$300.

Documentary stamp tax on the mortgage: If you’re financing, Florida charges $0.35 per $100 of the loan amount on the note. On a $400,000 mortgage that’s about $1,400.

Intangible tax on the mortgage: A one-time Florida tax of $0.20 per $100 of the loan amount (the “intangible tax”). On a $400,000 mortgage that’s $800. Cash buyers skip both this and the mortgage doc stamps.

Prepaid interest: Interest from your closing date to the end of that month. Varies by loan size and closing date.

Seller closing costs

In Florida, the seller typically pays real estate agent commissions (usually 5–6% of the sale price, split between both agents). Sellers also typically pay the doc stamps on the deed — a Florida transfer tax of $0.70 per $100 of the sale price (or $0.60 in Dade County).

Can you negotiate?

Yes. Sellers can offer closing cost credits as part of a negotiated deal — especially in a buyer’s market. Rather than lowering the purchase price (which can affect appraisal), sellers often offer credits toward the buyer’s closing costs.

You can also sometimes negotiate with lenders through discount points (paying upfront to lower your interest rate) or lender credits (getting money toward closing in exchange for a slightly higher rate).

What to ask your lender

When you get a Loan Estimate from a lender (required within 3 business days of your application), you’ll see an itemized estimate of all closing costs. Compare estimates from 2–3 lenders before committing.

Have more questions? Browse our full FAQ library or get your free Florida Home Buying Guide.