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Cost to buy a house in Florida

If you’re considering making Florida your permanent home, you’re not alone. The Sunshine State saw a significant influx of new residents in 2022, welcoming over 1,200 newcomers every day, according to the U.S. Census Bureau. However, while Florida offers beautiful beaches and a vibrant lifestyle, the homebuying process can be a competitive and sometimes complex endeavor. In this guide, we’ll break down everything you need to know about the costs of buying a house in Florida.

The Median Home Prices:

As of September 2023, the median sale price for a single-family home in Florida stands at $409,243, according to Florida Realtors. If you’re open to smaller spaces, condos or townhouses come with a median price tag of $324,990. However, it’s important to note that prices vary significantly depending on the location within the state. Here are some median prices in key areas:

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  • Miami-Fort Lauderdale-West Palm Beach: $600,000
  • Jacksonville: $385,000
  • Orlando-Kissimmee-Sanford: $435,000
  • Tallahassee: $326,213
  • Tampa-St. Petersburg-Clearwater: $415,000
  • North Port-Sarasota-Bradenton: $499,945
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Down Payment and Financing Options:

Contrary to popular belief, you don’t necessarily need to put down a full 20 percent of the purchase price. Popular mortgage programs have varying down payment requirements:

  • Conventional loans: 3 percent
  • FHA loans: 3.5 percent (credit score of 580 or higher), 10 percent (credit score between 500 and 579)
  • VA loans: No down payment if you qualify
  • USDA loans: No down payment if you qualify

If saving up for a down payment seems challenging, there are first-time homebuyer programs available for eligible borrowers, along with other down payment assistance options.

Closing Costs:

The average closing costs in Florida, according to Core Logic’s ClosingCorp, add up to 2.3 percent of the purchase price. On a median-priced $409,243 home, this amounts to approximately $9,412.59. It’s important to note that these costs are typically shared between the buyer and the seller. Common expenses include home appraisal and inspection fees.

Costs of Moving:

If you’re moving locally within Florida, the average cost is around $1,702, as reported by HomeAdvisor. However, for those relocating from another state, be prepared for a higher expense. The national average for a cross-country move is $4,617.

Ongoing Homeownership Costs:

Owning a home in Florida comes with additional expenses beyond the purchase price. These include:

  • HOA fees (if applicable)
  • Annual maintenance costs (recommended between 1 and 4 percent of the home’s value)
  • Property taxes (average of $4,085 in 2022)
  • Homeowners insurance (around $6,000 per year, due to the state’s susceptibility to hurricanes)
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Note on Florida Homeowners Insurance:

It’s crucial to be aware that the Florida homeowners insurance market is undergoing significant challenges. Factors such as fraudulent claims and hurricane-related issues have led to higher premiums. Before purchasing a Florida home, consult closely with a real estate agent and possibly a local attorney to ensure the property can be insured at a cost you can afford.

Tips for Reducing Homebuying Costs:

  • Negotiate for seller concessions
  • Consider a smaller home in a more affordable location
  • Monitor mortgage rates and consider waiting for a more favorable rate

Conclusion:

Navigating the Florida housing market requires careful consideration of various costs and factors. With the right information and assistance from an experienced local real estate agent, you can find a home that fits your budget and lifestyle. Remember, patience and thorough research can lead to a successful and satisfying homebuying experience in the Sunshine State.

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