Who Pays the Closing Costs in Florida?

Who Pays the Closing Costs in Florida?

Closing costs in Florida, most individuals focus on the amount of the mortgage they may hope to get and the amount of the down payment they will be able to make when they start thinking about financing their home purchase. Assuming you want to invest in real estate, you cannot afford to overlook the closing costs. Now, you may wonder, who pays the closing costs in Florida? The buyer and the seller are two parties responsible for the closing costs and other fees related to a home sale and purchase. Closing costs are fees buyers and sellers of a property pay to finalize a real estate transaction. Accounting for services like appraisals, inspections, and legal documents, usually add up to between 1% and 3% of the final sale price. Closing costs in Florida can reach up to 9% of the total transaction price when you include the Florida real estate commission, which usually is at 6% of the sale price.

An image of the Closing Costs in Florida by Gaffs Realty
Credit: Image by Gaffs Realty Source

Buyers’ Closing Cost in Florida

In Florida, buyers are responsible for appraisal and inspection fees, as well as costs like loan origination fees. They are also generally responsible for paying less in closing costs than sellers, mainly due to sellers getting a substantial payout in the transaction and easily paying a larger share of closing fees. When purchasing, you should know how much buyers’ closing costs are in Florida. Note that your closing costs may differ depending on the house you are planning to purchase and the seller you choose to deal with. By multiplying the price of your home by the average closing cost percentage of 2.3%, you may estimate how much you will pay in closing costs as a buyer. For instance, given that the typical home in Florida is $225,000, you would most likely owe approximately $5,175 at a rate of 2.3%. Keep in mind that these are estimated values only. Meeting with your mortgage advisor is the best approach to get a precise amount of closing costs.

Sellers’ Closing Cost in Florida

As mentioned above, the buyer and the seller pay for closing costs in Florida. Like most other states, Florida requires the seller to cover most of the closing costs. Included in those expenses is the real estate commission, which accounts for most of the closing expenses. Although buyers pay for closing fees too, the seller bears a higher financial burden when you look at the detailed breakdown of who pays what closing costs. The question of how much sellers’ closing costs in Florida will depend on the property price and other factors related to the transaction. A good rule of thumb is to assume that the seller will spend between 5% and 10% of the total transaction price of the home, mainly due to real estate commission which can be as high as 6%. Note that home sellers in Florida can benefit from Houwzer’s $5,000 flat fee, plus 2.5%, to the agent representing the buyer.

For inquiries and more information about closing costs in Florida, contact our team or visit our featured page at https://homesofdaytonabeach.com/daytona-beach-closing-costs/.