Wondering who pays for closing costs in Florida? Understanding these costs is crucial for proper financial planning. Whether you’re eyeing an equestrian property or a new construction in Ocala, closing costs will play a significant role in your home-buying journey. 

In this blog post, Ocala realtor Scott Coldwell and the professionals at Your Home Sold Guaranteed Realty - Coldwell Real Estate Services will discuss who pays for closing costs in Florida.

Key Takeaways:

• Closing costs in Florida typically range from 2.3% to 3% for buyers and 6 to 9% for sellers when including realtor commissions.
• For a median-priced Ocala home ($300,000), buyers should budget approximately $7,000 to $9,000 for closing costs.
• Certain closing costs are traditionally assigned to either the buyer or seller based on Marion County customs. However, who pays what can be negotiated between both parties.

Who Pays For Closing Costs in Florida?

Understanding Closing Costs in Florida

Closing costs typically include items such as title insurance, property taxes, recording fees, loan origination fees, and various other administrative expenses. Top Ocala realtor Scott Coldwell explains,

“Closing costs are a crucial protection for all parties involved in a real estate transaction. These fees ensure that everything from title searches to property taxes is properly handled, creating a secure and legally sound transfer of property.”

In Florida, particularly in Marion County, some costs are traditionally assigned to either the buyer or seller, though these assignments can often be negotiated during the contract phase.

Seller’s Closing Costs in Florida

Sellers in Ocala should prepare for the larger share of closing costs, typically ranging from 6% to 9% of the sale price when including realtor commissions. On a $300,000 home, this amounts to approximately $18,000 to $27,000.

The most significant expenses for sellers include:

• Realtor commissions, which are typically 5 to 6%
• Documentary stamp tax, which is $0.70 per $100 of the sale price
• Owner’s title insurance policy
• Outstanding property taxes
• HOA fees, if applicable

In Marion County, it’s customary for sellers to pay for the owner’s title insurance policy, which protects the buyer’s ownership rights.

Buyer’s Closing Costs in Florida

Buyers in Ocala should expect to pay between 2.3% and 3% of the home’s purchase price in closing costs. For a $300,000 home, this translates to approximately $6,900 to $9,000. These costs typically include:

• Lender’s title insurance
• Loan origination fees
• Appraisal fees
• Credit report fees
• Home inspection fees
• Prepaid items such as property taxes and homeowner’s insurance

Additionally, buyers should budget for recording fees and private mortgage insurance if their down payment is less than 20%. Coldwell notes,

“Understanding buyer closing costs is essential for proper financial planning. Many first-time homebuyers focus solely on the down payment, but closing costs require additional funds that need to be available at closing.”

Negotiating Closing Costs

While Marion County has traditional assignments for who pays which closing costs, these can often be negotiated between buyers and sellers. In today’s competitive Ocala market, some sellers may agree to pay a portion of the buyer’s closing costs to facilitate a sale, particularly if the property has been on the market for an extended period.

Conversely, in a seller’s market, buyers might offer to cover more closing costs to make their offer more attractive.

Working with an experienced local realtor is crucial for understanding which costs are negotiable and what’s customary in the current market conditions.

Remember that closing costs can also be impacted by the type of loan you choose. FHA loans, VA loans, and conventional mortgages each have different requirements and associated costs.

Additionally, some closing costs may be rolled into your mortgage, though this will increase your monthly payments and the total amount you pay over time.

Our Ocala Real Estate Team Makes it Easy to Buy a Home

Working with an expert realtor is the best way to understand who pays for closing costs in Florida. At Your Home Sold Guaranteed Realty - Coldwell Real Estate Services, Scott Coldwell and our team have worked with thousands of home buyers in Ocala and North Central Florida.

We know exactly what to do to guide our clients through closing and into their dream homes.  Our experience is only one reason we’re the best realtor in Ocala. In addition, we offer unique buyer guarantees that make buying a home risk-free, like our Buy it Back Guarantee.

To learn more about working with Your Home Sold Guaranteed Realty - Coldwell Real Estate Services to buy a house in Ocala or the surrounding areas, call 352-290-3512, or fill out the form on this page.

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!