Buying a home in Florida: what to know
Florida has its own contracts, costs and insurance realities. Here's a clear overview before you start.
The contract
Most residential sales in Florida use standard contracts approved by Florida Realtors and The Florida Bar. A common version is the "AS IS" contract, which still gives you an inspection period to investigate the home and cancel if you aren't satisfied. Deadlines in these contracts are strict, and I track every one of them for you.
Insurance comes first
Homeowners insurance in Florida can vary a lot from home to home. Roof age and type, wind mitigation features, the age of electrical and plumbing systems, and distance from the coast all affect your quote. Get quotes during your inspection period, not after.
If the home is in a FEMA special flood hazard area and you're using a mortgage, your lender will require flood insurance. Even outside those zones, it's worth getting a quote.
Inspections that matter here
- General home inspection for the overall condition.
- Wind mitigation inspection can lower your insurance premium.
- 4-point inspection often required by insurers for older homes.
- Wood destroying organism inspection for termites.
- Pool, roof, sewer scope or seawall inspections when relevant.
Taxes, HOAs and CDDs
Florida property taxes are paid in arrears, and the seller's share for the year is credited to you at closing. After you buy, the assessed value can reset to market value, so the seller's current tax bill may not reflect what yours will be.
Many communities have HOA dues. Many newer communities in Northeast Florida also have Community Development District (CDD) assessments that appear on the tax bill. I'll show you all of these before you commit.
Buyer closing costs
Buyers commonly pay lender fees, prepaid interest, insurance and escrow deposits, the lender's title policy, and Florida's documentary stamp tax on the note and intangible tax on the new mortgage when financing. Customs about who pays what vary by county and are negotiable in the contract.
Homestead exemption
If the home is your permanent residence, apply for the homestead exemption with your county property appraiser by March 1 of the following year. It reduces taxable value and limits how much your assessed value can rise each year.
A note on representation
Florida law presumes a real estate licensee works with you as a transaction broker unless you agree to a different relationship in writing. I'll explain the options and your buyer agreement before we tour homes.
This guide is general information, not legal or tax advice. Talk with a Florida real estate attorney, CPA or your lender about your specific situation.
Have questions about a specific home?
Taniya Refai | Florida Homes Realty & Mortgage | Brokerage Lic. CQ1032918 | Office (904) 996-9115
Frequently asked questions
Who pays closing costs in Florida?
Both sides pay some. In much of Northeast Florida the seller customarily pays for the owner's title policy and documentary stamp tax on the deed, while buyers usually pay lender related costs and taxes on the mortgage. Everything is negotiable in the contract.
What is a CDD in Florida?
A Community Development District is a special taxing district used to fund infrastructure and amenities in many newer communities. Its assessment appears on the property tax bill and can be significant, so check it for every home you consider.
What is an AS IS contract in Florida?
It's a standard Florida contract where the seller doesn't agree to make repairs, but the buyer still has an inspection period to inspect the home and cancel if they're not satisfied.